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Applying the Gartner Maturity Model

to Drive Logistics Excellence
Greg Aimi
Supply Chain Research Director
Logistics

CONFIDENTIAL AND PROPRIETARY

2014 Gartner, Inc. and/or its affiliates. All rights reserved.

CONFIDENTIAL AND PROPRIETARY

2014 Gartner, Inc. and/or its affiliates. All rights reserved.

What Does the Journey Look Like?

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

What Does the Journey Look Like?

Understand the 5 stages of logistics maturity
See how 10 dimensions of logistics
vary across the 5 stages
Assess your current capability against
the maturity model to establish baseline

Socialize and resolve discrepancies in the scoring

Analyze gaps in capabilities to develops initiatives to
achieve baseline across dimensions of importance
Use higher stage characteristics to create a goal/vision
of the future from which future initiatives would be
developed and evaluated in line with future supply chain
objectives
CONFIDENTIAL AND PROPRIETARY
2014 Gartner, Inc. and/or its affiliates. All rights reserved.

What Does the Journey Look Like?

Understand the 5 stages of logistics maturity
See how 10 dimensions of logistics
vary across the 5 stages
Assess your current capability against
the maturity model to establish baseline

Socialize and resolve discrepancies in the scoring

Analyze gaps in capabilities to develops initiatives to
achieve baseline across dimensions of importance
Use higher stage characteristics to create a goal/vision
of the future from which future initiatives would be
developed and evaluated in line with future supply chain
objectives
CONFIDENTIAL AND PROPRIETARY
2014 Gartner, Inc. and/or its affiliates. All rights reserved.

5 Stages of Logistics Maturity

Collaborate
Stage 4

Outside In

Collaborating
With Value Chain
Network

Stage 5
Network
Orchestrator of
Profitable
Customer Value

Orchestrate

Integrate

Mindset

Stage 3
Integrated With
the Supply Chain

Stage 2
Functional Scale
and Efficiency

Inside Out

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Stage 1
Siloed
Autonomous
Operation

Anticipate
Cost

React

Target

Service

5 Stages Defined for 10 dimensions of Capability

Orchestrate
Collaborate

Network
Orchestrator of
Profitable
Customer Value

Stage 4

Outside In

Stage 5

Collaborating
With Value Chain
Network

Integrate

Mindset

Stage 3
Integrated With
the Supply Chain

Stage 2
Functional Scale
and Efficiency

Inside Out
Anticipate
Cost
CONFIDENTIAL AND PROPRIETARY
2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Stage 1

React

Target

Siloed
Autonomous
Operation

Service

Your Origin Dictates Whats Next

Stage 5
Stage 4

Stage 3

Stage 2
Stage 1

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

A Path from Current to Future State

Stage 5
Stage 4
Alignment across Supply Chain
then Value Network

Long-term Vision

Stage 3

Cascading
Plan

Stage 2
Stage 1

CONFIDENTIAL AND PROPRIETARY

2014 Gartner, Inc. and/or its affiliates. All rights reserved.

What Does the Journey Look Like?

Understand the 5 stages of logistics maturity
See how 10 dimensions of logistics
vary across the 5 stages
Assess your current capability against
the maturity model to establish baseline

Socialize and resolve discrepancies in the scoring

Analyze gaps in capabilities to develops initiatives to
achieve baseline across dimensions of importance
Use higher stage characteristics to create a goal/vision
of the future from which future initiatives would be
developed and evaluated in line with future supply chain
objectives
CONFIDENTIAL AND PROPRIETARY
2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Use Assessment Toolkit to Determine

Dimension Scores
3 step process

(3) Make selection

from masked
choices in list
We are here because of x, y,
and z.

(2) For best match

note reasons why

(1) Read descriptions

& find best match
CONFIDENTIAL AND PROPRIETARY
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
12

Example of Individual Assessment

Score for
Individual
assessment

10 Dimension
Radar Graphic

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

13

Summary Scores by Different Groups

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14

Baseline Score plus Different Groups/Regions

Overall Composite
Baseline 2.0

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

15

At-a-glance scoring differences

Stage 5

Collaborate

Network
Orchestrator of
Profitable
Customer Value

Stage 4
Collaborating
With Value Chain
Network

Orchestrate

Integrate

Mindset

Stage 3
Integrated With
the Supply Chain

EUR 2.4

N. AM 2.1
EAS 1.57

2.0

Stage 2
Functional Scale
and Efficiency

MEAF 2.2

Anticipate

2014 Gartner, Inc. and/or its affiliates. All rights reserved.

React
Stage 1
Siloed
Autonomous
Operation

LATAM 2.0
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SEAS 1.5

Target

Socialize Results and Discuss Discrepancies

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

17

What Does the Journey Look Like?

Understand the 5 stages of logistics maturity
See how 10 dimensions of logistics
vary across the 5 stages
Assess your current capability against
the maturity model to establish baseline

Socialize and resolve discrepancies in the scoring

Analyze gaps in capabilities to develop initiatives to
achieve baseline across dimensions of importance
Use higher stage characteristics to create a goal/vision
of the future from which future initiatives would be
developed and evaluated in line with future supply chain
objectives
CONFIDENTIAL AND PROPRIETARY
2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Detailed Gap Analysis

Priority

Are all of these dimensions of equal

importance? Are any dimensions
not at all important?

Analysis

Goal/Culture and Organization well

exceed the baseline

Technology and Outsourcing are

well below the baseline

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

19

Full Stage 2 Recommended Achievements

Logistics is a specialized supply chain functionprocess in place for

obtaining and growing professional logistics talent

Logistics assets and spend have been combined across the corporation
where appropriate to control and optimize costs

Core carrier programs exist with professionally procured transportation

services and cross-organization compliance exists

A structured and documented approach to the delivery of the logistics

function exists across the organization

Delivery services to internal and external customers are standardized,

reliable, and improved while removing and/or eliminating inefficiencies
reducing costs and improving productivity.

Robust warehouse and transportation management systems are

implemented and used well. 3PL providers are leverage leading technology
for automation and optimization.

Enterprisewide functional KPIs for logistics help monitor and control

spending, drive efficiency and productivity, and measure adherence to
expected service delivery.

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

20

Most Gap from Baseline

Technology
Outsourcing

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

21

Technology Dimension Gaps?

Stage

Characteristics

Logistics relies on non-specialized-to-logistics ERP or legacy

business systems to process transactions as needed by backoffice departments (such as invoices, payments and inventory).

Systems and usage differ dramatically across business units,

divisions and regions. Fledgling attempts to begin
automation/optimization may happen in pockets.

Low-tech solutions are prevalent, including using phone, fax or

e-mail for manual interactions with outside parties, such as
carriers, 3PLs and forwarders.

Basic functionality is limited to departmental tasks

spreadsheets are used, in many cases.

Logistics makes use of various third party's systems, depending

on service and information required.

Logistics-specific systems for transportation management

system (TMS), warehouse management system (WMS) and
workforce management (WFM) are invested in and used
significantly. May be different across business units/regions.

Bid optimization tools for logistics/transportation procurement

(might be outsourced).

Automated identification technologies (such as radio

frequency, GPS, voice and RFID) and material
handling/automation systems are evaluated for appropriate
investment, and used to gain accuracy, efficiency, productivity
and throughput.

CONFIDENTIAL AND PROPRIETARY

Data interchange technologies are implemented to begin

electronic communication with carriers and 3PL networks22
(such
as electronic data interchange [EDI] and portals).

2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Gap?

Items in red are gaps in current

capability
Orange item is partially
implemented

Outsourcing Dimension Gaps?

Stage

Gaps?

Characteristics

Multiple, separate providers across regions, modes and

logistics services offered.
1

Managed by business unit logistics department using "arm'slength" relationships based on transaction processing and
cost reduction.
Reporting is infrequent, except when demanded for
exceptions and problems.
Quick reaction to non-planned events is expected.
Integration between third parties and company is disparate
and varies significantly across parties.
Using center-led, professional selection and contracting
processes, 3PL provider portfolio is evaluated in effort to
minimize total number of providers.

Outsourcing engagements focus on productivity and cost

reduction in warehouse and transportation functions, and
attempt to leverage scale of whole organization.
Transactional integration of disparate 3PL systems with
enterprise business systems for efficiency and accuracy.
Established oversight over third parties and improved
performance reporting with well-established
communications and governance structures.

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AND PROPRIETARY
Third
parties provide transactional logistics services, and

are

2014 Gartner,not
Inc. involved
and/or its affiliates.
All rights
reserved.
in strategic
supply
chain discussions/decisions.23

Items in red are gaps in current

capability

What Does the Journey Look Like?

Understand the 5 stages of logistics maturity
See how 10 dimensions of logistics
vary across the 5 stages
Assess your current capability against
the maturity model to establish baseline

Socialize and resolve discrepancies in the scoring

Analyze gaps in capabilities to develop initiatives to
achieve baseline across dimensions of importance
Use higher stage characteristics to create a goal/vision
of the future from which future initiatives would be
developed and evaluated in line with future supply chain
objectives
CONFIDENTIAL AND PROPRIETARY
2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Future-Vision Detailed Roadmap Development

Can be done as either workshop or independent work method

Understand and leverage your Supply Chain roadmap objectives

and initiatives

Use upper stage characteristics from maturity model in each

dimension to build future capability menu (sequenced 5-stage
worksheets availablesee appendix)

Prioritize advanced logistics capabilities that support SC objectives

Use an effort vs. value evaluation to assess priority for additional

initiatives

Revisit the assessment in 12-24 months to assess progress

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

25

Use Gartner Stage to Stage Recommended Initiatives

Stage 2 to Stage 3 High-Level Recommendations

Embed logistics as part of end-to-end supply chain process

Enable trade-offs in logistics or distribution costs or service where there is

greater value to the company.

Develop more supply chain expertise and cross-functional team

management in logistics staff

Provide timely and relevant data to other facets of the supply chain to help
them better prepare and plan for the impact of their decisions on logistics

Integrate logistics systems with supply chain systems globally

Make standard operational data (such as order and shipment tracking, and
customer logistics preferences) and metric data (e.g. analytics dashboards)
available to other parts of the organization, as needed through role-based
portals over enterprise logistics visibility platform

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

26

Upper Stage Capabilities by Dimension

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27

Initiative Prioritization
2

Effort (control, time and $$)

3
4

10
7
8

1
6

Value to Company (customer, market, $$)

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

28

The most important part of the journey might be

getting started. Gartners toolkits help you do just that.

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

29

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