Introduction: Large organizations know that they can create competitive advantage by leveraging the power of their supply chains where 1st and 2nd tier suppliers can constitute 80% of value. They demand data-driven insights that give them information to uncover, understand, and address such supply chain challenges as:
• Delivering products on time and with complete orders
• Optimizing product portfolios and managing SKUs
• Managing inventory to increase working capital
• Managing supply chain costs
• Creating a supply chain resilience
• Capturing supplier innovation
The CMP leverages supplier quantitative and qualitative performance benchmarking to align supplier performance and maturity requirements with customers’ supply chain strategies as follows:
Quantitative Supply Chain Performance
Quantitative Metrics are the key performance metrics of the supply chain and span end-to-end supply chain functions across Plan-Source-Make -Deliver- Enable process elements based on the APICS Supply Chain Council Supply Chain Operation Reference (SCOR) model. This model includes 250 SCOR metrics organized in a hierarchical (and codified) structure from organization level 1 to process level 2 to a diagnostic level 3.
Following CMP performance benchmarking training, customer data sharing, and production of a Performance Benchmarking Report generated by PriceWaterhouseCooper (PwC), the circled metrics are an illustration of a supplier’s performance improvement path that aligns with its customer’s (or global competitors’) unique supply performance levels. The last column represents the supplier’s performance gaps that the suppliers must close through applying identified leading, emerging, and best practice solutions. When customer input data is not available, the reports conveys a supplier’s relative global competitiveness.
Qualitative Cross-enterprise Operational Maturity
An industry group customizable on-line Supplier and Customer Cross-enterprise operational maturity assessment (OMA) tool gauges suppliers’ cross-enterprise operational maturity within 12 operational areas and sub-areas such as commitment to continuous improvement 5 five levels of maturity within sub-areas. The gap between the customer’s required level of maturity and that of the supplier represent the supplier’s maturity improvement development path. For each level of maturity, the system collectively defines the 53 operational practices that suppliers can adopt to close the maturity gaps. Note that Industry Groups may use this platform to develop a pre-CMP simplified tool to vet suppliers before forma engagement .
Quantitative Cross-enterprise Carbon Footprint Metrics
Qualitative cross-enterprise carbon footprint metrics measure the maturity of practices across overall supply chain elements, including plan-source-make- deliver-return-enable. As illustrated in the accompanying graphic, operational performance areas are benchmarked are Carbon Emissions, Air Pollutant Emissions, Liquid Waste Generated, Solid Waste Generated, and % Recycled Waste.
Other Supplier Supply Chain Strategies
While not supported directly by DMSCA, we advocate that suppliers undertake the development and implementation of two additional supply chain strategies to prepare them for engagement in Industry 4.0 technology-driven supply chains and provide assurances of having the right workforce in place to compete:
- Technology Enablement: (Big Data, IoT, AI, Predictive Analytics, Blockchain and Smart Contracts, etc.)
- Talent Identification and Workforce Training: