Supply Chain Management Blog Posts by SAP
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Doug_DeLuca
Product and Topic Expert
Product and Topic Expert
668

Today's logistics environment can feel like constantly navigating through a storm. Supply chain disruptions, unexpected market volatility, ongoing labor challenges, and the relentless pressure of customer expectations... these make even thinking about process and performance improvement more challenging when most of your energy is going into trying to ride out the storm. How do you find your way not just to calmer waters, but to rise to a level of operational excellence?

The journey begins with understanding where you are right now.

Drawing on insights from industry experts, including collaboration with Adrian Gonzalez of Adelante SCM, the latest Supply Chain Logistics Maturity Model offers a powerful framework to help you chart your course to logistics excellence. The model serves as a simple yet essential tool for self-assessment and planning for progress in transportation management and collaboration across your logistics ecosystem. The model delves into key areas of your logistics capabilities, helping you pinpoint strengths and weaknesses, ultimately to identify areas where you can and must improve to compete in today’s global market.

Logistics leaders face myriad, intertwined internal and external challenges:

  • External Forces: Fragile supply chains, global conflicts/trade wars, rising energy prices, trade lane bottlenecks, workforce dynamics, technology acceleration, the race to carbon zero, and the cost of capital.
  • Internal Struggles: Manual, error-prone processes, a focus on firefighting, complex and outdated system landscapes, data silos leading to limited business insights, a lack of end-to-end process coverage, and missing freight visibility.

So, with day-to-day challenges, why take the time to apply a maturity model to your planning for process and performance improvement? It provides a structured way to assess your current state, benchmark your capabilities, define your target destination, and chart a strategic course to get there. It both digs into your day-to-day challenges, and rises above them to provide a bird’s eye view. It helps you connect specific operational improvements to real business outcomes like reducing costs, enhancing agility, and boosting customer satisfaction. It supports strategic thinking, with tactical application into your capabilities and competencies. 

Let’s break-down how this maturity model will help to:

  • Assess your current state: It helps you understand where you truly stand across those five critical dimensions. This self-assessment is the crucial first step to identifying specific areas where you need to grow.
  • Benchmark capabilities: You can see how your capabilities align with defined stages of maturity, offering context for your current position and highlighting what's possible.
  • Define your target state: The model helps you visualize the capabilities that define higher levels of maturity, allowing you to set a clear goal for where you aspire to be based on your strategic business objectives.
  • Chart a strategic path: It lays out the logical steps required to progress from your current level to your desired future state, guiding your "what's next" planning discussions.

Over the next four posts, we'll explore what this journey looks like at each stage, from basic foundational steps to the most advanced levels of operation. We'll discuss:

  • The starting line: Understanding and improving manual processes.
  • Gaining traction: Leveraging early digitalization for greater visibility.
  • Building momentum: Integrating processes for enhanced resilience.
  • Reaching the summit: Achieving autonomous orchestration and competitive advantage.

It’s not a race, but it is like climbing a mountain. And progressing along the model only matters when you maintain a focus on business value – when you determine that your logistics operations must not only improve to support business growth, but can transform into a competitive advantage for growth. 

Ready to see how the Supply Chain Logistics Maturity Model can guide your transformation? Stay tuned for the next post where we explore each stage of the journey, starting at level 1

Access the report now: 
https://www.sap.com/documents/2025/04/5a01c68e-027f-0010-bca6-c68f7e60039b.urc.html

Register for the Lessons from Leaders webinar with Borouge: 
https://event.on24.com/wcc/r/4966341/6D8C316165AD7FD3348CA5FFDF9ADFE3/6149724?partnerref=Forwardable...
 
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