THE ROUTE TO ADVANCED BUSINESS PERFORMANCE

As mentioned, the SCOR� model and its engineering process counterparts provide
an excellent framework for analyzing how to improve an enterprise�s endto-
end processing. We will apply this model, in conjunction with the supply
chain maturity model and maturity matrices (to be introduced), to explain the
path to the highest appropriate level of supply chain progress, keeping in mind
that there are widely differing interpretations of these processes by companies
at different levels of supply chain sophistication. The simple silo-based planning
of a level 1 company, shared in an ad hoc way with neighboring internal
departments, for example, compares to the complex, reactive planning of a level
4 or 5 network, with collaborative, interactive comparisons of schedules up and
down key threads in the network. The na�ve �replace and scrap� policy for
returns in level 1 supply chains contrasts with the more sophisticated approaches
of higher level organizations, which are planning the cost-effective reentry of
refurbished products into the flow.
It is these different levels of application of the basic process models and the
value that can be generated that the authors have come to understand. For a firm
to generate value from the supply chain journey and become part of the processenabled
extended enterprise requires the creation of a guiding process maturity
roadmap.
is a matrix that is useful for establishing such a roadmap. The
matrix takes the top-level SCOR� processes � Plan, Source, Make, Deliver,
and Return � and sets out the attributes that can be expected for each process
as a company moves through the five levels of supply chain maturity.
The attributes are designed as a stretch for each level, and as our recent
surveys have shown, few companies have moved much beyond level 3. However,
there is merit in establishing an absolute framework against which progress
and value creation can be measured, to avoid the problems of traditional
benchmarking, where the top-level, best-in-class, attained performance may still
only be at level 3. In subsequent chapters, we will lay out the results of extensive
research in a number of case histories, to demonstrate the value that companies
have actually achieved in moving through the levels.
To support the growing process maturity, tools and technology are often
deployed. Again, we have developed a guiding matrix that indicates the types
of approach that typically support the processes in. This technology
matrix is shown in With these two matrices as our guide, we can describe the way in which
the supply chain processes and their supporting technologies develop � the
roadmap to greater supply chain value. Companies that want to follow this
roadmap are well advised to customize the matrices and the SCOR� map to fit
the actual circumstances of their industry and market conditions.