Supply Chain Business Capability Model

Supply Chain Management Business Capability Model Product Description 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 are Business Capabilities?

Business capabilities are described as the foundational building blocks or Rosetta Stone for business and technology alignment. Business Capabilities describe “What” a business does.

How should I use a Capability Model?  Understanding

the core essence of an enterprise and what it does.

 Alignment between

Supply Chain Management Business Capability Model

What do I get?

A Supply Chain Management Business Capability Model with ~120-125 capabilities

business and technology with a common language

 Mapping

to Applications/Services to understand the footprint and coverage

 Creating

a gap analysis between

Formats:  Spreadsheet

 Presentation Slide

 Word processing document

Capability Management in a Box DETAILS

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-

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, each company is slightly different in terms of some capabilities as well as how they are executed.

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

decomposed supply chain business capability map provides visibility and structure for planning.

and competencies based on your unique needs.

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.

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.

The model will help provide a jumpstart to envision a future state, conduct 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 4 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), to the most part.

Supply Chain Business Capability Model – Level 1 Supply Chain Planning

Procurement Management

Manufacturing

Warehousing

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

Transportation and 3rd Party Logistics

Sales Order Management

 When

Supply Chain systems replacement or re-architecture is being considered.

Governance and Risk Management

Example Decomposition of a sliver of the Supply Chain Capability Model

 When

Supply Chain processes are being considered for reengineering.

 When

Level 1

Level 2

Level 3

Level 4

Supply Chain Planning

Strategic Sourcing

Spot Buying

Order Forecasting

Procurement

Procurement Methods

Tender Management

Demand-based Material

Management

Pull Category Management

E-Auctions

Manufacturing

Transportation Network Mobile Enablement

Procurement Networks

Optimization

Warehousing Supplier Cost Transportation and 3 Party Logistics

Just-in-Time Ordering

Benchmarking

Total Cost of Material Analysis

Procurement Outsourcing

Real Time

Sales Order

Communication and

Management

Visibility

Governance and Risk Management

there is an endeavor to create an enterprise business architecture and a part of that the a specific functional of Supply Chain needs to be represented and included.

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 model valuable. After all, the price is less than the one-hour of time spent by the combined brain power assembled in the room.

What is my ROI? The Value of Time Spent:

Caveats:

Typically, it takes a team of 4-5 to draft a Business Capability Model:

 As the Supply Chain Management Business Capability Model is a digital product, there are

absolutely NO Returns.

 Product Manager  Business

 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?

CONTACT US

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.

Opportunity Cost: 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.

Acceleration: 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.