Supply Chain Management Business Capability Model: A Comprehensive, industry-agnostic, multi-purpose Supply Chain Management functional area business capability model. Our Supply Chain Management capability map spans all key areas of the Supply Chain and is a hierarchical decomposition of “What” Supply Chain function does.
What do I get?
A Supply Chain Management Business Capability Model with ~120-125 capabilities
Word processing document
Capability Management in a Box
Looking for more? Try our Capability Management in a Box. Or rather in a Spreadsheet
Why do we need a Supply Chain Business Capability Model?
The value of business capabilities is multi-dimensional as they help bridge the gap between business and IT, provide transparency into the essence of what a business does, and align development efforts to strategic priorities, which helps evolve and enhance capabilities.
Ideally, your firm should have a structured and well-defined enterprise business capability model, of which Supply Chain Capabilities should be an integral part. And furthermore, for the capability model to the actionable, it should be decomposed to a slightly granular level of capabilities (Level 3 or 4) for it to be actionable and to leverage in IT enablement projects.
One of the core functions of an enterprise is Supply Chain. In today’s highly competitive markets, providing right product/service at the right time, at the right price, at the right location has become ever more important. And a well-decomposed supply chain business capability map provides visibility and structure for planning.
CIOPages Supply Chain Management Business Capability model intends to capture a detailed view and a nuanced perspective of what Supply Chain does. It includes the nuts and bolts function as well as emerging and value-add functions/capabilities.
The model will help provide a jumpstart to envision a future state, conduct a gap analysis, identify capabilities which are needed/improved, and help focus efforts on capabilities that matter!
What is a Supply Chain Management Business Capability Model?
The Supply Chain Management Business capability model is decomposed to a minimum of two levels across the spectrum of Supply Chain Capabilities and many a time to levels 3 and four as well, depending on the granularity and modularity required.
The capability model is structurally sound, internally coherent and maintains principles of MECE (mutually exclusive and collectively exhaustive), for the most part.
Supply Chain Business Capability Model – Level 1
|Supply Chain Planning||Procurement Management||Manufacturing||Warehousing|
|Transportation and 3rd Party Logistics||Sales Order Management||Governance and Risk Management|
Example Decomposition of a sliver of the Supply Chain Capability Model
|Supply Chain Planning|
|Transportation and 3 Party Logistics|
|Sales Order Management|
|Governance and Risk Management|
|Supplier Cost Benchmarking|
|Demand-based Material Pull|
|Transportation Network Optimization|
|Total Cost of Material Analysis|
|Real Time Communication and Visibility|
- As the Supply Chain Management Business Capability Model is a digital product, there are absolutely NO Returns.
- Depending on your industry, the type of processes and principles, policies and practices you have, and the scope of your transformation, some of the Capabilities may not be relevant to you.
- If you are a consultant or a consulting company, there is a different pricing, license, and terms.
- Sold on an as-is basis and no warranties
- This sale does not include implementation help or support. If you need professional services assistance, please contact us.
- Please review our standard terms of service.
Need Customization Help?
What are Business Capabilities?
Business capabilities are the foundational building blocks or Rosetta Stone for business and technology alignment. Business Capabilities describe “What” business does.
How should I use a Capability Model?
- Understanding the core essence of an enterprise and what it does.
- Alignment between business and technology with a common language
- Mapping to Applications/Services to understand the footprint and coverage
- Creating a gap analysis between current state and future state based on Capability Maturity
- Understanding business needs for IT enablement based on stable entities
- Conducting vendor analysis using capabilities to compare apples and apples
- Leveraging in M&A to compare capabilities and their maturity between two firms
But, our Company is unique – will it fit us?
Of course, every business is slightly different regarding some capabilities as well as how they work. However, while there may be divergence at the edges, there is a lot of convergence at the core between most firms. The differences may be in part due to differences in industry, geography, types of products and services, and business model. Furthermore, the relative emphasis of the key value streams and absence or presence of specific capabilities and competencies based on your unique needs.
Last but not the least, we don’t expect our Supply Chain Management Business Capability Model (or any other model in fact) to fit you 100%. We expect you to take this as a straw model or a base and a springboard to achieve the level customization and specificity you desire.
If you need professional services help to tailor the model to your needs and capture your firm’s unique essence, we can help.
Contact Us for Advisory Service details.
When should we buy a Capability Model?
Anytime is a good time! However, there are always triggers which may necessitate a Supply Chain Management Business Capability Model.
- When there is a strategic review of the Supply Chain Management function for transformation
- When Supply Chain systems replacement or re-architecture is envisaged.
- When Supply Chain processes are re-engineered.
- When there is an endeavor to create an enterprise business architecture, and a part of the scope includes Supply Chain.
But, we have a Business Capability Model already?
Well, in that, case either you can go with it, or if you require validation and cross-reference, you will still find our framework valuable. After all, the price is less than the one-hour of time spent on the combined brain power assembled in the room.
What is my ROI?
The Value of Time Spent:
Typically, it takes a team of 4-5 to draft a Business Capability Model:
- Product Manager
- Business Architect
- Enterprise ArchitectSupply
- Functional Experts – 2 or 3 to represent the broad spectrum of functional areas.
Now you can multiply the average hourly cost of the team and the hours spent, and you’ll get the story.
In addition to the time spent and the associated costs of drafting routine Capabilities, you also have an opportunity cost.
By quickly adding/deleting/modifying the base set of Supply Chain Business Capabilities, it will allow you the luxury of spending the balance of your quality time in conceptualizing and crafting the unique and specific capabilities, which capture the core essence of your company and its practices, principles, and perspectives.
Of course, let’s not forget the “Day Job” each of the SMEs (subject matter experts) could be doing.
Instead of spending countless hours stretched across weeks or months, you can have a baseline of Supply Chain Management Business Capabilities in a couple of sittings. That helps you expedite and accelerate the transformation.