Stages of Logistics Maturity

• Stage 1: React — Siloed Autonomous Operation
  • Characterized by autonomous departments, such as sales and manufacturing, driving logistics priorities via manual processes and disparate, disconnected systems.
  • No cross-divisional standardization of the logistics services offered to customers and little coordination.
• Stage 2: Anticipate — Functional Scale and Efficiency
  • Centralization of the logistics function is beginning to improve efficiency and productivity.
  • Logistics activity and performance are captured and reported using an organization-wide model, enabling better anticipation of demand.
  • Focus on creating standardized processes and methods to benefit from economies of scale and increased efficiency.
  • Performance is internally focused on fulfillment percentage, productivity, costs and return on assets.
• Stage 3: Integrate — Integrated With the Supply Chain
  • Focus is on integrating the logistics function into the overall supply chain.
  • Increased consideration of how logistics will affect customer service, procurement and manufacturing.
  • Productivity enhancements and cost reductions are achieved through connections to supply management and third-party logistics providers.
• Stage 4: Collaborate — Collaborating With the Value Chain Network
  • Logistics is an integrated part of a shared supply chain management vision, with trade-offs orchestrated between profitability and customer value.
  • There is collaboration and visibility with suppliers and customers, as well as strategic partnerships with logistics providers that go beyond simple transactional services.
  • Logistics capabilities are reliable enough to consider opportunities to shape market channel requirements.
• Stage 5: Orchestrate — Network Orchestrator of Profitable Customer Value
  • Logistics and the rest of the supply chain facilitate processes across an ecosystem of partners to capitalize on unique business opportunities.
  • Information flows across the supply chain network in real time.
  • This enables broader visibility and timely, fact-based decisions, which increases market share and growth opportunities.

• Five Key Logistics Capabilities
  • Skilled inventory management
  • Agile distribution networks
  • Flexibility of transport options
  • IT and software optimization
  • Quality of the customer experience
• Maturity Score
  • 200 companies involved in the research
  • Average score of 58
  • One third of brands earned “high maturity” scores of 67 or greater
  • One third achieved “average maturity” with scores of 51 to 66
  • Remaining third recorded “low maturity” scores of 50 or lower
• Challenges Vary According to the Level of Maturity
  • Brands at more mature end of the spectrum tend to struggle with flexible shipping options and, at times poor inventory management
  • Brands at lower end are challenged by integration of their stores with e-Commerce networks resulting in operational inefficiencies

• Level 1: Reactive Supply Chain Management
  • Low degree of integration and little coordination between suppliers and partners
  • Minimal coordination between product design and supplier operations
  • Little visibility into source of supply chain risk
  • Unbalanced inventory leading to poor customer service
• Level 2: Internal Supply Chain Integration with Planned Buffers
  • Align performance objectives and information across internal departments
  • Some visibility into emerging changes and patterns outside of the company
  • Changing demand patterns influence product design
  • Integration of internal risk management processes
• Level 3: Collaboration across extended supply chain network
  • Extensive data and information sharing produces high visibility
  • Integration of product design and inventory management across all supply chain partners
  • Visibility outside of the organization is exploited to predict change and variability
  • Monitor supply chain resilience levels and business continuity plan preparation
• Level 4: Dynamic supply chain adaptation and flexibility
  • Align KPIs across the entire ecosystem
  • Full flexibility to identify and respond to emerging value chain patterns
  • Real-time monitoring and data analytics
  • Quick responses shortens product, network, and process lead times
  • Segmented risk strategies based on supplier profiles and market-product combination characteristics

• React stage
  • Focus on containing costs while increasing both productivity and proficiency
  • Visibility is limited to project and application-based status, alerts, and events
• Anticipate stage
  • Centralization of the supply chain improves efficiency and productivity
  • Focus on creating standardized processes and methods to benefit from economies of scale and increased efficiency
  • Performance is internally focused on fulfillment percentage, productivity, costs and return on assets
  • Data collection challenges still loom large, with a reliance on large, legacy IT investments such as ERP systems
  • Supply chain activity and performance are captured and reported using an organization-wide model, enabling better anticipation of demand
• Stage 4
  • Focus on improving the performance of the partners in the extended supply chain
• Stage 5
  • Leverage data from public and unstructured sources as well as IoT sources
  • Complex applications are focused on improving visibility, performance, and value across the network

• Reverse Logistics Maturity
  • A suitable strategy to support sustainable solid waste management is reverse logistics
  • It is possible to determine the grade to which small- and medium-sized enterprises are prepared to perform this strategy
  • The maturity model was applied to seven small- and medium-sized enterprises in the plastics sector in the central and southern regions of Colombia
  • Results show that maturity levels range from naïve to immature owing to the incipient development of reverse logistics in Colombia
  • It is necessary to establish a holistic vision of the organisation to improve the reverse logistics decision-making process to achieve sustainable solid waste management
• Research Challenges in Municipal Solid Waste Management
  • Research challenges in municipal solid waste logistics management.
  • Reverse logistics network for municipal solid waste management: The inclusion of waste pickers as a Brazilian legal requirement.
  • Assessment of the municipal solid waste management system in Accra, Ghana: A ‘Wasteaware’ benchmark indicator approach.
• E-waste Management and Sustainability
  • E-waste management and sustainability: a case study in Brazil.
• Solid Waste Management in Small Island Developing States
  • Current status of solid waste management in small island developing states: A review.

💭  Looking into

How can organizations measure and improve their logistics maturity?

💭  Looking into

What data-sharing and collaboration strategies are used for the various stages of logistics maturity?

💭  Looking into

What are the benefits of integrating logistics into the overall supply chain in Stage 3?

💭  Looking into

What metrics are used to measure performance in Stage 2: Anticipate?

💭  Looking into

What are the specific challenges of the siloed autonomous operation of Stage 1?

• Stage one
  • Large global companies divided by businesses, divisions, regions and profit-and-loss statements
  • Logistics functions reside within each, with little synergy among the parts
  • Result is “individual autonomous groups being driven by priorities of other parts of the company”
• Stage two
  • Leverage their scale to achieve some level of organizational consistency
  • Still internally focused and serve constituent businesses
  • Focus on cost containment, proficiency and productivity
• Stage three
  • Brought together various functions under the classic model of “plan, make, source, deliver”
  • Tradeoffs between transportation and inventory holding costs
  • Some degree of knowledge among the various groups of the larger ramifications of their decisions
  • Business is still internally focused
• Stage four
  • Planning and execution process with demand, and work backwards from there
  • Value network comes into play
• Stage five
  • Embrace the notion of the value network
  • Understand the things that can be done to help suppliers and customers create value
  • Governance model that oversees logistics for the entire organization, even though some components continue to reside within the various nodes
  • Thinking about problems collectively
  • Third-party logistics providers are also brought into the fold
  • Balance between what you can standardize and what you need to specialize

• Stages of Logistics Maturity
  • Checking if the site connection is secure
  • There are various abbreviations used throughout the page such as DOI, USP, CL, PDF, CID, and MCI.
  • There are a lot of dates mentioned throughout the page in both Julian and Roman calendar formats.
  • There are many locations mentioned throughout the page such as Москва, Санкт-Петербург, Ростов н/Д, and Ленинград.

• Stage 1: React — Siloed Autonomous Operation
  • Characterized by autonomous departments, such as sales and manufacturing, driving logistics priorities via manual processes and disparate, disconnected systems
  • No cross-divisional standardization of the logistics services offered to customers and little coordination
• Stage 2: Anticipate — Functional Scale and Efficiency
  • Centralization of the logistics function is beginning to improve efficiency and productivity
  • Logistics activity and performance are captured and reported using an organization-wide model, enabling better anticipation of demand
  • Focus on creating standardized processes and methods to benefit from economies of scale and increased efficiency
  • Performance is internally focused on fulfillment percentage, productivity, costs and return on assets
• Stage 3: Integrate — Integrated With the Supply Chain
  • Focus is on integrating the logistics function into the overall supply chain
  • Increased consideration of how logistics will affect customer service, procurement and manufacturing
  • Productivity enhancements and cost reductions are achieved through connections to supply management and third-party logistics providers
• Stage 4: Collaborate — Collaborating With the Value Chain Network
  • Logistics is an integrated part of a shared supply chain management vision, with trade-offs orchestrated between profitability and customer value
  • There is collaboration and visibility with suppliers and customers, as well as strategic partnerships with logistics providers that go beyond simple transactional services
  • Logistics capabilities are reliable enough to consider opportunities to shape market channel requirements
• Stage 5: Orchestrate — Network Orchestrator of Profitable Customer Value
  • Logistics and the rest of the supply chain facilitate processes across an ecosystem of partners to capitalize on unique business opportunities
  • Information flows across the supply chain network in real time
  • This enables broader visibility and timely, fact-based decisions, which increases market share and growth opportunities

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• The Five Stages of Logistics Maturity
  • According to Greg Aimi, director of supply chain research with Gartner, companies are passing through five stages of logistics maturity.
  • These stages involve siloed behavior to data-sharing and collaboration across disciplines.

💭  Looking into

What is the best way to measure Logistics Maturity?