There are quite a few supply chain maturity models. These models attempt to drive best practices in Supply Chain Management. One basic idea behind the supply chain maturity model is that increased supply chain maturity will lead to improved supply chain performance, which in turn will lead to improved financial performance. But we all know the reality of supply chain is not as simple directly proportional relationship and there is little empirical evidence about the relationship between Supply Chain Maturity and financial performance.
As we all know, Supply Chain Management is a complex task. It is regarded as the management of all links (purchasing, supply, transportation, loading and unloading, etc.) constituting the supply logistics chain. The goal of supply chain management is to optimize supply tools and methods to minimize delivery time, improve delivery reliability reduce inventory and thus reduce costs. Once the optimization is successful, we become able to talk about a real-time work organization with no inventory.
The performance of a business supply network is critical to its success and the development of a mature supply chain approach (increasing visibility): Mostly, business control is based on its supply chain network, which also affects its way of competing in the domestic and global markets.
Key logistics trends constitute control over the company’s entire operations, chain store participants, and decisions that have brought huge benefits. In this case, the development of logistics plays an important role in enhancing competitiveness and building partnerships, and it also helps to achieve significant cost savings.
According to the Global Supply Chain Forum, the SCM (Supply Chain Management) is
“the integration of key business processes from end user through original suppliers that provide products, services and information that adds value for the customer and other stakeholders.”
The use of the supply chain maturity model points to advanced and robust processes. It measures the maturity of suppliers that are valuable to organizational leadership and frameworks. The supply chain maturity model can be used to evaluate the current business situation based on key competitive factors and to set goals.
The mature concepts in supply chain networks come from the understanding of network life cycles, which are subject to visible control, definition, measurement and management throughout the process. High maturity means better control of output, cost increase and target forecasting, including the overall performance of achieving established targets.
With the help of the supply chain maturity model, companies can better satisfy and respond to changes in the supply chain environment.