IMPROVING THE MATURITY OF A SUPPLY CHAIN ORGANIZATION THROUGH OPTIMIZATION
The Carnrite Group was engaged by a large North American E&P independent to assess their supply chain structure and organizational capability to improve its overall maturity level and effectiveness.
Our initial assessment was conducted by administering and facilitating our Maturity Assessment Procurement Survey (MAPS). The results revealed a lower than expected maturity level across 12 dimensions, significant gaps in skill set and a need to clarify roles and responsibility.
The supply chain leadership team believed the organization could move up the maturity curve by clarifying roles and responsibilities, simplifying existing processes and providing the necessary, methods, tools and training.
ESTABLISH A BASELINE
Working with the leadership team we administered the MAPS to the entire organization to establish a maturity level baseline. We also conducted interviews with field operations personnel to validate the gaps and deficiencies. Once complete, the results suggested deficiencies around procurement strategy, roles, and responsibilities, business process and communication between supply chain and field operations. In addition, supply chain organizational structure was not aligned to meet the needs of the business. To improve the maturity level and organizational effectiveness we established cross-functional teams to focus on process and technology, roles and responsibilities and alignment with operations and production goals and objectives.
GRAPH: THE MATURITY OF A SUPPLY CHAIN ORGANIZATION
Graph shows the stages of supply chain maturity from tactical planning through optimization
INSTALL A STRUCTURE AND FRAMEWORK TO IMPROVE MATURITY LEVEL
To improve the maturity level and organizational effectiveness we formed cross functional teams to focus on alignment of procurement strategy with operational goals and objectives, clarification of roles and responsibilities and process and technology.
With Carnrite’s guidance and direction the teams developed a structure and framework consisting of commercial strength, performance management, stakeholder services and business analytics. These 4 pillars are the essential foundation to building a road map to address the organizational needs, capabilities and individual development. Carnrite partnered with the project team to ensure the appropriate change management was installed to ensure sustainability.
- Commercial Strength – Generate realizable savings to the bottom line with consistent process and methodology
- Performance Management – Provide governance and structure for successful assurance
- Stakeholder Services – Deliver the operation in service for Business Units, Operations and indirect customers
- Business Analytics – Provide market and supply base intelligence, forecast and demand planning, and reporting
ESTABLISH DELIVERABLES TO IMPROVE POSITION FOR THE FUTURE
- Clarify roles and responsibilities and decision rights for all Supply Chain positions
- Align policies, procedures and standards with updated roles and responsibilities
- Define accountability and processes for compliance activities
- Develop an organizational structure to be more efficient and effective
- Develop a communication plan for internal & external stakeholders
- Developed fit-for-purpose governance structure for managing projects and other initiatives
After establishing the baseline, structure and framework stakeholders were willing to take risk and were more receptive to change.
Next, the development of the organization’s supply chain capability and a communication plan resulted in consistent internal and external messaging and organization-wide buy-in for the new roles and structure.
Finally, the implementation of Carnrite’s solutions aligned the operational expectations with the organization’s supply chain capabilities. This resulted in improved process efficiency and productivity and reduced costs.
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