1. The document discusses developing a supply chain roadmap for a company by assessing current performance metrics and maturity of processes. 2. Key supply chain metrics like cost, service, efficiency and process metrics are analyzed along with maturity of strategic, operational, and execution processes. 3. Gaps identified through metric performance and process assessment are addressed through initiatives which are prioritized in a roadmap to improve the supply chain over time.

1. Developing Supply Chain RoadMap for a Company
Any assessment of a company’s supply chain begins with an assessment of current state of
the supply chain in terms of key supply chain metrics and business metrics. It also involves
an assessment of current maturity level of key processes in the supply chain.
Performance of the supply chain is assessed in terms of key metrics and this is correlated to
maturity of key supply chain processes. This would give a good idea about metrics which can
be improved and the key levers for achieving the same. The key levers are then finalized in
the form of various initiatives and executed as part of a supply chain roadmap.
Performance of key 1. Key Areas of
metrics Improvement
2. Key Levers to be Implementation
used/Finalization of of RoadMap
Initiatives
3. Business Case
Preparation to estimate
Maturity of key benefits
processes 4. Implementation
Roadmaphen
Performance of Key Metrics
The key metrics which can be typically tracked to check the health of supply chain are
Cost Metrics
1. Manufacturing Cost
2. Transportation Cost
3. Warehousing Cost
4. Inventory Cost
5. Obsolescence Cost
6. Procurement Cost
7. Total Cost to Serve Market Demand
Service Metrics
1. %age Service level/Order Fulfilment Ratio(OTIF)
2. Number of Stock Outs
3. Lead Times to Service Demand

2. Efficiency Metrics
1. Production Yields
2. Inventory Turnover/Days of Inventory
3. Warehouse Throughput
4. FTL/LTL ratios in transportation
Process Metrics
1. All Plan v/s Actual metrics (eg: Planned Production v/s Actual Production, Planned
Dispatches v/s Actual Dispatches etc.)
Profitability Metrics
1. Contribution
Usually, the above metrics are measured with different frequencies and therefore, it’s a
good idea to take a representative time frame to measure them. A representative set of
metrics are measured to assess the current performance.
Maturity of Key Processes
Several processes and elements determine the performance of supply chain. Processes can
be classified as Strategic, Operational and Close to Execution Processes.
Some of the key processes which are studied in any supply chain are:
Type Details
Strategic 1. Supply Chain Network Design
Processes/Elements 2. Definition of Inventory Norms
3. Manufacturing Policy
4. Sourcing Strategy
5. Negotiations and Contracting
Operational 1. Sales and Operations Planning
Processes/Elements 2. Procurement Planning
3. Transportation Planning
Close to Execution 1. Day to Day Order Fulfilment
Processes/Elements 2. Load Building, Shipment Planning and Dispatch
3. Warehouse Processes( Goods Received, Put Away, Picking
and Dispatch)
4. Procure to Pay cycle for Procurement
5. Track and Trace
Overall 1. Feedback, Monitoring and Performance Management

3. A good assessment of the above processes gives indications about the possible
improvement areas, and especially when seen in conjunction of key metrics. For example,
the metric of % service level may be lower than expected. Assessment of processes might
indicate that maturity of sales and operations planning process is low, which may be
impacting the %age service level. Therefore one initiative which will clearly emerge would
be to increase the robustness and maturity of sales and operations planning process in the
organization.
Business Case and Implementation RoadMap
The potential benefits of implementing a set of initiatives are captured in a business case.
The business case projects the benefits and improvements in key metrics over a future time
horizon as the identified initiatives are implemented. The plan of implementation of
initiatives is captured in a roadmap.
To Do Initiatives Impact on Metrics Overall Impact and Time
Horizon
Do Supply Chain Network Will reduce cost to serve Anticipated Increase in
Design in view of changed markets by x% Contribution by a% expected
external environment and over next 1 year.
internal plans Will reduce obsolescence by
Implement Robust S&OP to y%
increase its maturity to 4
Improve Warehouse Will improve Inventory
Processes to maturity 4 Turnover by z%
RoadMap Illustration
M1 M2 M3 M4 M5 M6
Network Design Implement and Maintain
S&OP Maintain and Improve
Warehouse Process Improvement Maintain and Improve