Appendix B: Digital Supply Chain Transformation Maturity Assessment

Introduction

This tool is designed to help leaders in supply chain organizations develop a sense of where they are from an organizational perspective, as well as to begin to develop a sense of “what good looks like” in some key dimensions of the digital supply chain (Digital Supply Chain Institute DSCI, 2017). We recommend using this tool in both ways, as an actual diagnostic, to help determine focus areas, strengths, and areas for improvement, as well as to help build digital acumen.

Transformation Maturity Assessment: Survey Questions to Determine Maturity (Moss & Kurz, 2020)

Demand

This section will help you assess:

  • • How well your function is able to improve demand forecast accuracy
  • • The variety of data sources your firm utilizes to make demand decisions
  • • Your supply chain (SC) function’s ability to utilize data to respond to rapidly changing market demands
  • • How deeply your SC function is involved in stimulating customer demand

The assessment questions will help you develop a better understanding of how your SC function currently interacts with and reacts to customer demand information. These are key capabilities enabling a real-time DSC (Moss & Kurz, 2020).

A SC that demonstrates a high level of performance in these categories will enable improved revenue generation and improved customer satisfaction while managing operating costs and working capital investments.

1. Currently the following sources of data are integrated into our demand planning and forecasting, (check all that apply)

a. Internal historical data

b. Customer data

c. Customer’s customer (consumer) data

d. Supplier data

e. Supplier’s supplier data

f. Social media data

g. Relevant public data (weather, news, etc.)

h. IoT data

i. Consumer sentiment data

j. Service and warranty data

k. Competitor data

2. The following best describes how demand forecasting is done at our organization.

a. Demand forecasting is done using available historical data and sales forecasts.

b. Demand forecasting is done with input from various departments utilizing cross-functional data.

c. A cross-functional consensus demand forecast is made with utilization of predictive analytics and visibility into constraints.

3. The following best describes SC’s involvement in the evaluation and adjustment of our business models.

a. SC is reactive to any changes in business models.

b. SC is consulted in the development of new business models.

c. SC leaders are actively involved in creating new business models.

4. The following best describes the current level of agility and adaptability of our SC:

a. Our SC operates in a way that makes it difficult to react to changing market demands.

b. We can rapidly respond to SC disruptions that could impact meeting customer demand.

c. We proactively anticipate customer demand and manage our SC capacity to prevent negative impacts.

5. The following best describes the role our SC function has in stimulating and shaping demand.

a. SC responds to demand forecasts and orders.

b. SC is involved in consensus demand forecasting, but not integrated into demand stimulation activities.

c. SC is fully integrated into a cross-functional team that includes product development, marketing and sales to manage our demand stimulation program.

6. If SC is involved in demand stimulation, the following sources of data are utilized, (check all that apply)

a. Internal historical data

b. Customer data

c. Customer’s customer (consumer) data

d. Supplier data

e. Supplier’s supplier data

f. Social media data

g. Relevant public data (weather, news, etc.)

h. IoT data

i. Consumer sentiment data

j. Service and warranty data

k. Competitor data

7. The following best describes the current metrics we use in managing SC performance:

a. We primarily use traditional SC metrics that focus on our internal performance.

b. We are starting to test and introduce new SC metrics related to the customer.

c. Our metrics are a blend of traditional supply metrics and new metrics that measure customer growth and satisfaction.

8. The following best describes how SC manages the trade-off between SC costs (inventory level, transportation, etc.) and customer satisfaction (example, on-time in-full).

a. We struggle to reduce the trade-off.

b. We are starting to improve our performance to reduce the trade-off.

c. We are utilizing DSC activities to effectively reduce the trade-off.

9. The following best describes SC’s role in collaboration with customers to generate demand:

a. Our focus is transactional, seeking to obtain the best terms on price, delivery, and quality.

b. We strategically develop long term relationships with key customers.

c. We collaborate with key customers to establish data sharing and joint performance metrics.

 
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