Editor’s Note: The following post introduces a research report published recently, “Supply Chain Logistics Maturity Model.” The research, conducted by Adelante SCM and commissioned by SAP, led to the creation of a Supply Chain Logistics Maturity Model. This model, which includes four defined maturity levels along with assessment questions and key performance indicators, provides companies with a focused and up-to-date framework for assessing their capabilities in transportation management, including capabilities for collaboration with their network of business partners. The report also includes insights from the Indago supply chain research community and SAP customers. For additional insights from the research, please download the full report.
Have you heard the Zen story about the archer? A young man asks a Zen master how to hit a bullseye every time with his bow. The master responds, “First, know yourself. Then know your bow. Then know your target.”
Or what about the story about the two lost travelers? One traveler had a compass, the other had a map, but neither knew where they were. The traveler with the compass said, “We need to follow north.” But the traveler with the map said, “Without knowing where we are on the map, heading north could lead us deeper into danger.”
If you haven’t heard of those stories, perhaps you’re familiar with this famous quote by baseball Hall of Famer Yogi Berra: “If you don’t know where you’re going, you’ll end up someplace else.”
The lessons in all three are the same:
- You must understand your current skills and capabilities before aiming for a goal.
- You must know your starting point to determine the right path forward.
Helping companies address those two points with regards to a specific business process or domain is the purpose of a Maturity Model.
What is a Maturity Model?
Simply put, a maturity model is a framework that companies use to assess their current level of capability in specific process domains and provide a roadmap for improvement. Various maturity models exist, such as the Supply Chain Operations Reference (SCOR) Model, to help companies assess their transportation, logistics, or supply chain processes and capabilities.
In a September 2024 survey conducted with members of Indago’s supply chain research community — who are all supply chain and logistics executives from manufacturing, retail, and distribution companies — as well as a select group of SAP customers, more than half the respondents (56%) said that they have used a maturity model to assess their transportation, logistics, or supply chain processes and capabilities. The SCOR Model topped the list of the models used.
More than 60% of the respondents who have used a maturity model said that it was either “Very helpful” (46%) or “Extremely helpful” (15%) in improving their transportation, logistics, or supply chain processes and capabilities.
“Maturity models give a snapshot in time of where you are with a path forward for improvement based on industry standards,” said the Supply Chain Operations Manager at a leading mineral company. “They provide a north star.”
The Regional Logistics & Planning Manager at a leading company in the Oil & Gas industry commented, “Ultimately, the SCOR model allowed me to begin to benchmark where we are on our journey to [creating] a more robust supply chain. Whilst we are a very manual organization, that leaves us lots of room for improvement.”
Using a maturity model can also validate or challenge your assumptions about your current supply chain processes and capabilities, as this Senior Manager of S&OP Excellence at a leading Consumer Goods company shares: “In my experience, the results of the maturity model were surprising because we are more mature than we thought. So, celebrate that maturity, but also keep the continuous improvement mindset.”
If you are currently skeptical about the value of using a maturity model to assess your current supply chain and logistics capabilities and provide a roadmap for improvement, hopefully the feedback from these executives will make you more open to using one.
Which level of maturity best describes your current state? What steps can you take to move up the maturity curve? To help you answer those questions, download the “Supply Chain Logistics Maturity Model” report and review the assessment questions and Key Performance Indicators provided.
