Supply Chain Business Capability Model

Supply Chain Management Business Capability Model
Product Description
Supply Chain Management Business Capability Model: A Comprehensive, industry-agnostic, multi-purpose Supply Chain
Management functional area business capability model. Our Supply Chain Management capability map spans all key
areas of the Supply Chain and is a hierarchical decomposition of “What” Supply Chain function does.
What are Business Capabilities?
Business capabilities are described as
the foundational building blocks or
Rosetta Stone for business and
technology alignment. Business
Capabilities describe “What” a
business does.
How should I use a Capability
Model?
Understanding the core essence of
an enterprise and what it does.
Supply Chain Management Business Capability Model
What do I get?
A Supply Chain Management Business Capability Model with ~120-125
capabilities
Alignment between business and
technology with a common
language
Mapping to Applications/Services
to understand the footprint and
coverage
Creating a gap analysis between

Formats:
Spreadsheet
Word processing document
Presentation Slide
Capability Management in a Box
DETAILS
Looking for more? Try our Capability Management in a Box…or
rather in a Spreadsheet
Why do we need a Supply Chain Business Capability
Model?
The value of business capabilities is multi-dimensional as they help bridge the
gap between business and IT, provide transparency into the essence of what a
business does, and align development efforts to strategic priorities, which helps
evolve and enhance capabilities.
Ideally, your firm should have a structured and well-defined enterprise business
capability model, of which Supply Chain Capabilities should be an integral part.
And furthermore, for the capability model to the actionable, it should be
decomposed to a slightly granular level of capabilities (Level 3 or 4) for it to be
actionable and to leverage in IT enablement projects.
One of the core functions of an enterprise is Supply Chain. In today’s highly
competitive markets, providing right product/service at the right time, at the
right price, at the right location has become ever more important. And a well-
current state and future state
based on Capability maturity
Understanding business needs for
IT enablement based on stable
entities
Conducting vendor analysis using
capabilities to compare apples and
apples
Leveraging in M&A to compare
capabilities and their maturity
between two firms
But, our Company is unique – will it
fit us?
Of course, each company is slightly
different in terms of some capabilities
as well as how they are executed.
However, while there may be
divergence at the edges, there is a lot
of convergence at the core between
most firms. The differences may be
in part due to differences in industry,
geography, types of products and
services, and business model.
Furthermore, the relative emphasis of
the key value streams and absence
or presence of specific capabilities

decomposed supply chain business capability map provides visibility and
structure for planning.
CIOPages Supply Chain Management Business Capability model intends to
capture a detailed view and a nuanced perspective of what Supply Chain does.
It includes the nuts and bolts function as well as emerging and value-add
functions/capabilities.
The model will help provide a jumpstart to envision a future state, conduct gap
analysis, identify capabilities which are needed/improved, and help focus
efforts on capabilities that matter!
What is a Supply Chain Management Business Capability
Model?
The Supply Chain Management Business capability model is decomposed to a
minimum of two levels across the spectrum of Supply Chain Capabilities and
many a time to levels 3 and 4 as well, depending on the granularity and
modularity required.
The capability model is structurally sound, internally coherent and maintains
principles of MECE (mutually exclusive and collectively exhaustive), to the most
part.
Supply Chain Business Capability Model – Level 1
Supply Chain
Planning
Procurement
Management
Manufacturing
Warehousing
and competencies based on your
unique needs.
Last but not the least, we don’t expect
our Supply Chain Management
Business Capability Model (or any
other model in fact) to fit you 100%.
We expect you to take this as a straw
model or a base and a springboard to
achieve the level customization and
specificity you desire.
If you need professional services help
to tailor the model to your needs and
capture your firm’s unique essence,
we can help.
Contact Us for Advisory Service details.
When should we buy a
Capability Model?
Anytime is a good time! However,
there are always triggers which may
necessitate a Supply Chain
Management Business Capability
Model.
When there is a strategic review of
the Supply Chain Management
function for transformation

Transportation and
3rd Party Logistics
Sales Order
Management
Governance and Risk
Management
When Supply Chain systems
replacement or re-architecture is
being considered.
Example Decomposition of a sliver of the Supply Chain
Capability Model
When Supply Chain processes are
being considered for reengineering.
Level 1
Supply Chain Planning
Procurement
Management
Manufacturing
Warehousing
Transportation and 3
Party Logistics
Sales Order
Management
Governance and Risk
Management
Level 2
Strategic Sourcing
Procurement Methods
Category Management
Mobile Enablement
Supplier Cost
Benchmarking
Level 3
Spot Buying
Tender Management
E-Auctions
Procurement Networks
Just-in-Time Ordering
Procurement
Outsourcing
Level 4
Order Forecasting
Demand-based Material
Pull
Transportation Network
Optimization
Total Cost of Material
Analysis
Real Time
Communication and
Visibility
When there is an endeavor to
create an enterprise business
architecture and a part of that the a
specific functional of Supply Chain
needs to be represented and
included.
But, we have a Business Capability
Model already?
Well, in that case either you can go
with it or if you require validation and
cross-reference, you will still find our
model valuable. After all, the price is
less than the one-hour of time spent
by the combined brain power
assembled in the room.
What is my ROI?
The Value of Time Spent:
Caveats:
Typically, it takes a team of 4-5 to
draft a Business Capability Model:

As the Supply Chain Management Business Capability Model is a digital product, there are
absolutely NO Returns.
Depending on your industry, the type of processes and principles, policies and practices
you have, and the scope of your transformation, some of the Capabilities may not be
relevant to you.
If you are a consultant or a consulting company, there is a different pricing, license, and
terms.
Sold on an as-is basis and no warranties
This sale does not include implementation help or support. If you need professional
services assistance, please contact us.
Please review our standard terms of service.
Need Customization Help?
CONTACT US
Product Manager
Business Architect
Enterprise ArchitectSupply
Functional Experts – 2 or 3 to
represent the broad spectrum of
functional areas.
Now you can multiply the average
hourly cost of the team and the hours
spent and you’ll get the story.
Opportunity Cost:
In addition to the time spent and the
associated costs of drafting routine
Capabilities, you also have an
opportunity cost.
By quickly adding/deleting/modifying
the base set of Supply Chain
Business Capabilities, it will allow you
the luxury of spending the balance of
your quality time in conceptualizing
and crafting the unique and specific
capabilities, which capture the core
essence of your company and its
practices, principles and perspectives.
Of course, let’s not forget the “Day

Job” each of the SMEs (subject
matter experts) could be doing.
Acceleration:
Instead of spending countless hours
stretched across weeks or months,
you can have a baseline of Supply
Chain Management Business
Capabilities in a couple of sittings.
That helps you expedite and
accelerate the transformation.