Introduction: Suppliers operating in a supply chain without a strategy is the equivalent of being in rough open seas in a rudderless boat — without a paddle. Because customers and their industry group’s supply chain performance requirements are different, what makes one supplier a laggard and another strategic is having a defined metric-driven supply chain strategy for performance improvement and operational maturity.
Unique Supply Chain Performance
As benchmarked against its global competitors or others in the customer’s supply chain, the supplier’s development is depicted by the Pink Area. The supplier’s development objective is closing reliability, responsiveness, agility, cost, and asset management performance gaps through the application of identified emerging practices, best practices, and standard practices.
Cross-enterprise Operational Maturity
As benchmarked against its customer’s cross-enterprise operational maturity standards, the development zone is depicted by the Grey Area. The supplier’s development objective is the closing of the maturity gap by application of the CMP tool identified maturation practices.
Cross-enterprise Carbon Footprint
Based on third-party measured current state sustainability metrics, a supplier’s development zone depicted by the Pink Area, is based on its customer’s or its industry group’s desired maturity requirement or standard. Note that these metrics are not intended to represent a supplier’s more comprehensive sustainability plan.