How do you get a successful Supply Chain?

Supply Chain Maturity differs at each stage    

In fact, our supply-chain maturity model shown in figure 8.2 describes four  stages of supply-chain, where each stage of product life-cycle is paralleled by a maturity stage of supply chain. As figure 8.2 below shows, there are four relevant zones of operations determined by two key factors on product maturity and supply chain maturity. Zone 1 is the foundation zone in which both the product and the supply chain are quite immature.

Figure 8.2: Supply chain marity model (Source: Baddock and Sood)

 

As the name implies, in this zone the foundation for the future business is being laid. The next zone on the top left quarter of the matrix – the Innovation zone – implies a relatively mature supply chain, but a developing product. As the name suggests, this is the zone where both product and process innovations are rapidly taking place. The profitability zone on the top right quadrant is where both the product and the supply chains are relatively mature and while incremental innovation might be still possible. This zone is primarily focused on enhanced profitability. Finally, the twilight zone on the bottom right corner is when the product is reaching the end of its profitable life cycle and the supply chain becomes brittle.

Profitability Zone and Innovation Zone are the two most productive zones

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