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© Copyright 2001 The Performance Measurement Group, LLC
6903MV — 11/06/01
8
Stage 1 Stage 2 Stage 3 Stage 4
Each practice area is assessed across four
operational elements
Functional
Focus
Internal
Integration
External
Integration
Cross-
Enterprise
Collaboration
Strategy
Demand Planning
Supply Planning
Demand/Supply Balancing & Decision Making
Strategy
Commodity & Process Management
Supplier Development/Management
Organization & Infrastructure
Manufacturing Strategy
Production Scheduling
Material Issue, Move & Tracking
Manufacturing Process Control
Enable
Order Entry & Scheduling
Warehousing, Transportation & Delivery
Invoicing & Cash Collection
Supply Chain Strategy
Supply Chain Performance Management
Supply Chain Processes
Supply Chain Organization
Deliver
Overall
Stages of Operational Capability
Plan
Source
Make
Sample practices for Source: Supplier
Development/Management
Stage 1 Stage 2 Stage 3 Stage 4
Functional Focus Internal Integration External Integration
Cross-Enterprise
Collaboration
Arms-length and/or poorly
defined supplier partnership
relationships. No formal supplier
relationship management
process in place
Little supplier segmentation
Commodity strategies
determine supplier relationships.
Formal supplier relationships
are defined reflecting cross-
functional requirement for
buyer/supplier communication
Joint service/partnership
agreements for objectives and
incentives, performance targets,
benefit sharing agreements, and
Terms and Conditions
Online, virtual management of
supply relationships for data
visibility, collaborative planning,
performance tracking, and
virtual workplace