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Have you Assessed the Health of your Supply Chain?

By Jane Barrett | October 01, 2015 | 0 Comments

We recently published the 2015 update to our DDVN (Demand Driven Value Network) five-stage maturity model and self-assessment toolkit. This model was first introduced in 2004 and every few year’s needs a refresh as supply chain matures, the global economy creates different priorities, and disruptions force the emergence of interesting innovations.

For those unfamiliar with the concept, Gartner defines a DDVN as a business environment that is holistically designed to maximize value across the set of processes and technologies that senses and orchestrates demand based on a near-zero-latency signal across multiple networks of employees and trading partners. This may sound quite wordy but the bottom line is that supply chain organizations must become more integrated, responsive and collaborative internally and externally. Our DDVN maturity research helps you understand where you are today, and what your improvement roadmap should look like.

Hundreds of companies have used our maturity models and self-assessment tools to help them with their Supply Chain transformation, whether it is incremental continuous improvement or more of a major change. Seven cross-functional dimensions are assessed.

Most companies assess themselves between stage 2 and 3. Research shows getting to stage 3 – an Integrated Supply Chain – is the hardest and takes the longest. It requires conscious design of what should be global versus regional versus local, what should be standardized, where we need consistent measurement and language, and simplification of supporting technology platforms. There is no one right answer as to what a stage 3 organization looks like but we see more companies able to move forward in maturity where they have broadened the span of control of the major supply chain functions under one head of Supply Chain (CSCO).

I was chatting to one of our Research Directors and lead author of this content, Paul Lord, and he suggests this tool is also useful as a change readiness assessment as it help companies avoid investing in initiatives they are not ready for. It can help the Supply Chain leader gauge the disparity of attitudes and perceptions across the group, and provides insights on how to proceed. Paul was just telling me about a client he worked with last week where they do not have a burning platform to drive change, so this has really helped them rally together and take an evolutionary approach to their strategy.

Key takeaway: Be aware of your maturity level in Supply Chain to make sure you are focused on the right set of prioritized and synchronized initiatives?

 

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