# Patent

## Title
Postal, freight, and logistics industry high performance capability assessment

## Abstract

A high performance capability assessment model helps a postal industry business meet the challenges of the global marketplace. As a result, the postal industry business can achieve the clarity, consistency, and well-defined execution of core processes that reduce inefficiencies and waste that result from unnecessary process complexity and exceptions. In addition, the high performance capability assessment model helps the postal industry business to identify specific areas in which improvements may be made and understand how to make the improvements, and establishes levels of capability along the way to reaching an ultimate capability goal.

## Background
BACKGROUND OF THE INVENTION
1. Technical Field
This disclosure concerns a system and method to identify the performance capability of an organization on a scale of representative capabilities. In particular, this disclosure relates to an efficient and cost effective way to assess the performance capability level of key assessment areas within the processes of a postal, freight and logistics-related organization.
2. Background Information
Modern businesses operate in an increasingly competitive environment. To survive, postal, freight, and logistics-related businesses must adapt to this environment and execute in a clear, consistent, and efficient manner. Furthermore, the global nature of postal, freight, and logistics-related businesses greatly increases the complexity and difficulty of surviving on a day-to-day basis.
Despite the need for a business in the postal, freight, and logistics industry to meet the challenges of the global marketplace, it is still often the case that the business lacks clarity, consistency, and well-defined execution of its core processes. These shortcomings severely constrain the business, and lead directly to inefficiencies and waste due to unnecessary complexity, process exceptions, and customer dissatisfaction. At the same time, it can be very difficult to identify specific processes to which improvements may be made, either because the business itself does not have the expertise to identify the processes or because the complexities of the business frustrate attempts to clearly delineate the processes to be improved.
Even if the postal, freight, and logistics-related business, on its own, could identify one of the many processes that it needs to improve, the business would not necessarily know how to improve the process or be able to identify a concrete and measurable improvement goal. Another difficulty exists in determining whether there are any intermediate goals that should be reached along the way. As a result, postal, freight, and logistics-related businesses struggle to meet the demands of the modern marketplace and fail to identify opportunities for margin improvement, category expansion, portfolio optimization, multi-channel execution, selling performance, and to reach other important goals.
Therefore, a need exists for an efficient and effective system and method to assess the performance capability level of key assessment areas within the processes of an organization.
SUMMARY
A high performance capability assessment (HPCA) model helps businesses, particularly a postal, freight, and logistics business, meet the challenges of the global marketplace by defining a scale of performance capability along which the current practices of the business may be located. The HPCA model accelerates the discovery of process and capability gaps within business operations. In addition, the HPCA model also helps the business to identify specific areas in which improvements may be made, how to make the improvements, and how to establish levels of capability during the course of attempting to achieve an ultimate capability goal. As a result, the business can achieve the clarity, consistency, and well-defined execution of core processes that reduce inefficiencies and waste. For purposes of clarity and brevity, the term “postal, freight, and logistics” may be used interchangeably with the term “postal.” Thus, a postal, freight, and logistics business or industry is the same as a postal business or industry.
The HPCA model includes a key factor dimension and a performance capability scale dimension. The performance capability scale dimension defines multiple capability levels. The performance capability levels may form a scale of increasing organizational performance capability. One example of such a scale includes a ‘Basic’ capability level, a ‘Competitive’ capability level, and a ‘Market Leading’ capability level. Each performance capability level includes criteria specific to a corresponding key assessment area. Each key assessment area identifies some aspect of a capability of a business.
Capabilities of a business may be grouped into platforms. For example, the HPCA model may group the capabilities of the postal industry into ten high-level platforms, including a customer interaction platform, enablement platform, asset management platform, information and data management platform, contract management platform, mail operations platform, transportation platform, supplemental services platform, retail operations platform, and enterprise platform. Examples of capabilities within the customer interaction platform, for example, include channel management, product management, pricing, marketing, sales, booking and order management, solutions management, customer service, and invoicing. Platforms may include sub-platforms, as well as capabilities.
The key factor dimension establishes a set of key assessment areas in which to analyze the capabilities of a business. Key assessment areas include performance capability criteria. Performance capability criteria populate the performance capability assessment model. The performance capability criteria may be specific to any one of many different business capabilities. For example, the customer interaction platform includes performance capability criteria for channel management, product management, pricing, marketing, sales, booking and order management, solutions management, customer service, and invoicing key assessment areas at each of the capability levels along the performance capability scale dimension. Any number of performance capability assessment models and performance capability criteria may be defined and stored in a capability detail pool for subsequent retrieval and application to a business under examination. Accordingly, the HPCA model provides a flexible and adaptive scale of performance capability against which business practices may be compared to ascertain where the capabilities of a business under examination fall along the scale.
Other systems, methods, features and advantages will be, or will become, apparent to one with skill in the art upon examination of the following figures and detailed description. All such additional systems, methods, features and advantages are included within this description, are within the scope of the invention, and are protected by the following claims.



BRIEF DESCRIPTION OF THE DRAWINGS
The postal industry performance capability assessment model and system may be better understood with reference to the following drawings and description. The elements in the figures are not necessarily to scale, emphasis instead being placed upon illustrating the principles of the capability assessment techniques. In the figures, like-referenced numerals designate corresponding parts throughout the different views.
FIG. 1 shows a high performance capability assessment model with a performance capability scale and performance capability criteria shown for different platforms.
FIG. 2 shows a high performance capability assessment model with customer interaction capabilities shown.
FIG. 3 shows a high performance capability assessment model with enablement capabilities shown.
FIG. 4 is a continuation sheet of FIG. 3 for the high performance capability assessment model with asset management and information/data management capabilities shown.
FIG. 5 shows a high performance capability assessment model with contract management capabilities and mail operations capabilities shown.
FIG. 6 shows a high performance capability assessment model with transportation capabilities shown.
FIG. 7 is a continuation sheet of FIG. 6 for the capability assessment model with transportation capabilities shown.
FIG. 8 shows a high performance capability assessment model with supplemental services capabilities shown.
FIG. 9 shows a high performance capability assessment model with retail operations capabilities shown.
FIG. 10 shows a high performance capability assessment model with enterprise capabilities shown.
FIG. 11 is a continuation sheet of FIG. 10 for the capability assessment model with enterprise capabilities shown.
FIG. 12 shows a capability detail pool providing a multidimensional postal industry performance reference set where multiple key assessment performance reference tables are collected and stored.
FIG. 13 shows a capability assessment system.
FIG. 14 shows a flow diagram for establishing high performance capability assessment models.
FIG. 15 shows a flow diagram for retrieving and applying high performance capability assessment models.
FIG. 16 shows a flow diagram for analyzing representative practice data to determine a postal industry and a postal key assessment area to which the representative practice data applies.



DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
FIG. 1 shows a high performance capability assessment (HPCA) model 100. The HPCA model 100 specifies ten high-level platforms, including a customer interaction platform 102, enablement platform 104, asset management platform 106, information and data management platform 108, contract management platform 110, mail operations platform 112, transportation platform 114, supplemental services platform 116, retail operations platform 118, and enterprise platform 120. The HPCA model 100 is not limited to the form shown in FIG. 1. Instead, the HPCA model 100 may be adapted and modified to fill a wide variety of analysis roles. Additional, different, or fewer platforms may be used in other implementations, with each platform defining additional, different, or fewer capabilities. Each platform includes one or more multiple <platform name> capabilities 130.
The HPCA model 100 establishes a multidimensional postal industry performance reference set that includes multiple key assessment performance levels 138, further described below in reference Tables 1-3. The performance levels 138 establish a scale of increasing organizational performance capability. The key assessment performance reference tables include a ‘Basic’ 140 performance capability level, a ‘Competitive’ 142 performance capability level and a ‘Market Leading’ 144 performance capability level. The performance capability levels establish a performance capability scale 146 along which current business practices may be located and identified with respect to any platform and capability within a platform according to an analysis of performance capability criteria (PCC). The capability under evaluation may be assigned the performance level 138 based on a capability position 158 along the performance capability scale 146.
The ‘Basic’ performance capability level 140 specifies ‘Basic’ performance assessment criteria, the ‘Competitive’ performance capability level 142 specifies ‘Competitive’ performance assessment criteria, and the ‘Market Leading’ performance capability level 144 specifies ‘Market Leading’ performance assessment criteria. The HPCA model 100 receives input data that specifies a postal industry platform (e.g., a postal industry area) and a postal industry key assessment area for analysis. The HPCA model 100 searches the multidimensional postal industry performance reference set for a matching key assessment performance reference table that matches the postal industry platform and corresponding industry capability within the platform and the postal industry key assessment area, and retrieves the matching key assessment performance reference table. The HPCA model 100 initiates analysis of the matching key assessment performance reference table to obtain a resultant performance capability level for the postal industry key assessment area.
Tables 1-3 below provide an explanation of each of the capability levels 140, 142, and 144.







TABLE 1





‘Basic’ Capability Level
















Description:
Capability mastery at a basic level is indicative of a low 



level, unclear, undisciplined, or unsophisticated ability 



to execute the capability or process in a consistent, traceable, 



and repeatable manner. For non-core, low priority, new, or 



early adoption of certain process capabilities, a basic level 



may be acceptable to the organization or the organization may 



not have the resources to expand beyond the basic capability 



level. A basic level of mastery often indicates that an 



organization is lagging behind its competitors in its ability 



to execute the capability.
















TABLE 2





‘Competitive’ Capability Level
















Description:
Capability mastery at a competitive level is indicative 



of a conservative ability to execute the capability in a 



fairly consistent, traceable, and repeatable manner with 



proven techniques, tools and commonly accepted practices 



that are readily available and maintained. This capability 



mastery may be a strategic decision by the organization 



to be a follower or “good enough” operator in many 



respects or may be an interim step that organizations aspire 



to move beyond to achieve a leading mastery of the



given capability. A competitive level of mastery often 



indicates that an organization is performing consistently 



with its competitors in its ability to execute a capability.
















TABLE 3





‘Market Leading’ Capability Level
















Description:
Capability mastery at a market leading level is indicative 



of a highly detailed, clear, and often iterative and 



sophisticated ability to execute the capability. The market 



leading capability is the recognized and referenced benchmark 



of continuous improvement and high performance for a given



process capability. The market leading process capability has 



been optimized for efficiency and effectiveness, is well 



understood, traceable, and consistently executed to the 



point of being competitively differentiated or at the top level 



of peer to peer comparison.









For FIGS. 2-11, the capability under evaluation may be assigned a capability level 138 based on a capability position along the performance capability scale 146 (e.g., the ‘basic,’ ‘competitive,’ or ‘market leading’ capability level). Performance capability criteria corresponding to the basic 140, competitive 142 and market leading 144 performance levels populate the HPCA model 100. The performance capability criteria capture criteria, characteristics, and/or other features of a capability at a particular capability or performance level 138 for a selected key assessment area. Examples below illustrate performance capability criteria that provide unexpectedly good analysis and benchmarking for postal organizations. The HPCA model 100 performance capability criteria provide a tool for determining where a platform and capability under examination falls along the performance capability scale 146.
For example, business consultants and industrial engineers may interview a business or receive data about the business to determine, measure, or otherwise ascertain the characteristics, criteria, and other features of a particular capability implemented within the business. The consultants and engineers may compare the characteristics of the business to the performance capability criteria in the HPCA model 100 and arrive at a capability level 138 for the capability under examination. In doing so, for example, the consultants and engineers may identify where the capability under examination falls in terms of the capability level for each key assessment area of a capability and determine an overall position on the performance capability scale 146 for the capability under examination. Performance capability criteria may populate the HPCA model 100 in whole or in part. Multiple high performance capability assessment models may be collected and stored with the performance capability criteria for future retrieval and possible modification in a capability detail pool, discussed below.
FIG. 2 shows the customer interaction platform 102 divided into respective capability areas 202. The customer interaction platform 102 includes a channel management capability 220, product management capability 222, pricing capability 224, marketing capability 226, sales capability 228, booking and order management capability 230, solutions management capability 232, customer service capability 234, and invoicing capability 236.
FIGS. 3 and 4 show the enablement platform 104 divided into respective capability areas 302. The enablement platform 104 includes a capacity planning capability 320, network planning capability 322, production planning capability 324, scheduling capability 326, labor planning capability 328, operations management capability 330, partner and supplier management capability 332, settlement capability 334, facility management capability 420, fleet and equipment management capability 422, and maintenance, repair and overhaul capability 424, master data management capability 432, address management capability 434, and document management capability 436. In some embodiments, the capability areas of facility management capability 420, fleet and equipment management capability 422, and maintenance, repair and overhaul capability 424 may be under a sub-platform referred to as asset management, while the capability areas of master data management capability 432, address management capability 434, and document management capability 436 may be under a sub-platform referred to as information and data management.
FIG. 5 shows the contract management platform 110 and respective capability area 502. The contract management platform 110 may also be arranged as a sub-platform of a different platform. FIG. 5 also shows the mail operations platform 112 divided into respective capability areas 506. The mail operations platform 112 includes a mail production capability 542, mail preparation 544, acceptance and induction capability 546, mail sorting capability 548, and mail management 550.
FIGS. 6 and 7 show the transportation platform 114 divided into respective capability areas 602. The transportation platform 114 includes a dispatch capability 620, pick-up and receive capability 622, terminal handling and sorting-handling capability 624, terminal handling and sorting-unloading/loading capability 626, terminal handling and sorting-sorting capability 628, terminal handling and sorting-storage capability 630, sea operations capability 720, line-haul capability 722, rail operations capability 724, air operations capability 726, delivery capability 728, and delivery-mail delivery capability 730.
FIG. 8 shows the supplemental services platform 116 divided into respective capability areas 802. The supplemental services platform 116 includes a customs management capability 820, yard and handling area capability 822, track and trace capability 824, transport management capability 826, payment handling capability 828, special requirements management capability 830, and exceptions management capability 832.
FIG. 9 shows the retail operations platform 118 divided into respective capability areas 902. The retail operations platform 118 includes store operations capability 920, category planning and management capability 922, price and revenue management capability 924, store inventory management capability 926, replenishment capability 928, and licensing management capability 930.
FIGS. 10 and 11 show the enterprise platform 120 divided into respective capability areas 1002. The enterprise platform 120 includes a corporate strategy capability 1020, finance and accounting capability 1022, human resources capability 1024, procurement capability 1026, information technology capability 1028, information technology development architecture capability 1030, information technology execution architecture capability 1120, information technology infrastructure management capability 1122, information technology application management capability 1124, performance management capability 1126, and quality management capability 1128.
The following Tables 4-68 provide an explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the respective platform. Each capability may include one or more key assessment areas. Each key assessment area may include one or more additional key assessment areas. In other words, a business capability may include sub-capabilities, and therefore, key assessment areas corresponding to the multiple sub-capabilities. The tables below show specific criteria used to analyze each capability.
The following Tables 4-12 provide an explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the customer interaction platform 102.







TABLE 4





Channel Management
















Description:
The platform contains all customer-interaction-driven 



capabilities between an organization and its customers, 



from order management to invoicing, as well as all 



marketing disciplines.


Basic Criteria:
Communication Flexibility:



Small number of distribution channels mainly to 



provide information to customer.



No integration with IT backbone, just static content.



Channel Economics:



Channels coexist but are not consequently managed.



Costs assigned with certain channels are not known.



Customer Support:



Customer interact with local representation.



Alternative contacts, e.g., central help desk not 



promoted.



Electronic Communication:



Limited availability of electronic communication 



channels with customers and partners, e.g., one 



common eMail address provided.



Self Service:



Category-based web self service for informational/



collateral inquiries via PCs, set top boxes, and kiosk.


Competitive
Communication Flexibility:


Criteria:
Variety of distribution channels available for customers 



and partners.



Channels are mainly single level, meaning that there is 



only one level of service regardless of the customer 



type or priority.



Some integration with IT backbone architecture.



Channels utilized consist primarily of traditional 



channels for that industry.



Channel Economics:



Basic understanding of volumes costs and margins of 



the different channels.



Managed on intuitive basis for better efficiency of 



provided service.



Customer Support:



Customers interact through multiple contact points, 



sometimes leading to confusion and loss of 



information or double and inconsistent communication.



Status of customer is patchy and not homogeneous 



between countries or business units.



Electronic Communication:



Limited interaction (e.g., capture of orders). Basic 



integration with IT backbone system. Milestone 



completion (status) is published.



Self Service:



Web self service for customer account specific 



inquiries via PCs, set top boxes, and kiosk.


Market Leading
Communication Flexibility:


Criteria:
Variety of channels tailored to customers and 



partners specific needs.



Customers guided/given incentives to use most 



appropriate channel.



Full IT backbone integration.



Channel Economics:



Clear understanding and management of 



channel economics.



Customer Support:



Contact point processes are highly standardized 



and tool supported.



Certain contact points are tailored to specific 



customer groups according to their requirements.



Customers can maintain of their own profile 



information on preferred modes of 



communication, delivery, etc.



Electronic Communication:



All communication can be performed electronically 



remote from customer's IT systems as, e.g., ERP or 



procurement platform.



Self Service:



Web self service for customer specific transactional 



inquiries via PCs, set top boxes, and kiosk.
















TABLE 5





Product Management
















Description:
Manage products and services as they are offered to 



customers. This is an area of innovation and opportunity 



management. Initiatives have to be aligned with Marketing, 



Sales and Operations. Product portfolio has to be



monitored and kept consistent. This area also contains the 



necessary activities to generate insight into the market and 



customers.


Basic Criteria:
Organization and Methods:



No dedicated organization for product management. No 



product management methodology.



Some individuals have been designated to manage the 



products.



Innovation Management:



Innovation is mostly restricted to match key competitors 



(“me-too”) or capture offerings that are already 



provided in operations.



Product Portfolio:



Inflation of similar products which cannot be properly 



distinguished by customers and lead to inefficient 



production processes.



Product value proposition not ensured along the 



supply chain.



Product development is driven by internal company 



needs.


Competitive
Organization and Methods:


Criteria:
Product Management organization has been defined.



Innovation Management:



Opportunities for new products are gathered 



sporadically from different sources like operations, 



general market trends or customer feedback and 



stored in scattered databases.



Product Portfolio:



New advanced services are designed, developed and 



launched jointly with key customers.


Market Leading
Organization and Methods:


Criteria:
Product Management methodology is available and 



trained consistently.



Product Management is well integrated with the 



other capabilities.



Process across capabilities for product introduction/



improvement.



Innovation Management:



Clearly defined innovation process and assigned 



responsibilities.



Available data within the organization (customer 



surveys, feedback management, etc.) is systematically 



used to leverage the process.



Applications support the collection, vetting and 



development of new ideas through virtual collaboration.



Offerings are driven by buyer values or predicted needs. 



Buyer value studies, focus groups or other community 



building activities are key inputs to the product initiation.



Product Portfolio:



Product Management maximizes both customer value and 



profitability.



Product portfolio is reduced in redundancy and optimized 



for Customer, Operations and Marketing needs.
















TABLE 6





Pricing
















Description:
This process determines of the structure and level of prices 



to offer based on the cost to build the product/provide the 



service, market requirements and business strategy. The 



pricing strategy and guidelines are established and the 



price is determined. The pricing is market relevant and 



competitive, covers the costs of the provided services and 



allows for appropriate margin contribution. It is 



communicated internally and externally.


Basic Criteria:
Flexibility:



Basic and additional surcharges can have no 



interdependencies between them.



Accuracy:



Pricing is based on data as given by the customer 



order and this data is only adjusted manually in case 



order data was significantly incorrect.



Customer Support:



Basic pricing grids are available to customers either 



paper-based or on website.



Governance:



Only basic pricing strategy is in place.



Pricing tariffs are managed in local terminal systems 



leading to no company wide overview of pricing and 



applied discounts.



Centrally structured pricing negotiation metrics and 



approval for more complex offerings (>5 days).



Market Agility:



Manual adjustments of tariffs only if needed. This is a 



time consuming process.



Price Determination:



Pricing mainly driven by market conditions not taking 



real costs (e.g., of additional services) into account.



Standardized pricing according to product.


Competitive
Flexibility:


Criteria:
Through multi stage pricing conditional pricing rules 



can be defined taking interdependencies between 



services into account.



Support for spot market integration for ad-hoc 



pricing of charter or quotation requests.



Accuracy:



Pricing is based on shipment data, e.g., with inputs 



from weight and volume machines being more accurate.



Customer Support:



Service in call-centers which tariffs are most applicable 



for customer's needs.



Governance:



Detailed pricing strategy along customer segments. 



Pricing guidelines are managed on corporate level. For 



Pricing real costs are considered.



Centrally structured and managed pricing negotiation 



guidelines for complex pricing and contract creation 



process (<1 day).



Market Agility:



Relative and absolute mass price update functionality 



is available.



Tariffs have start and end date.



Price Determination:



Some basic price simulations are performed. These are 



based on a basic understanding of associated costs.



Standardized pricing according to product and channel.


Market Leading
Flexibility:


Criteria:
Support for multiple tariff structures with different 



inputs within one contract (e.g., pricing based on pallets, 



items or bulk volume).



What-if comparison, e.g., with competitor's tariff 



structures can be performed during price determination 



in order to provide a Competitive offering to customers 



in Customer Management capability (sales).



Accuracy:



Internal controls ensure that discounts are applied 



appropriately.



Customer Support:



Users can request price information using configuration 



tool on website.



Governance:



Pricing strategy also includes demand and competitor 



pricing and capacity plan.



Centrally structured, value based pricing negotiation 



guidelines, with assigned resource for complex pricing 



and contract creation process (Real Time).



Market Agility:



Pricing can be easily tailored to Marketing promotion 



requirements.



Price Determination:



Price simulations using market research, scenarios and 



activity based costing.



Dynamic pricing options are available and yield 



management is performed. Customer profitability, loyalty 



and/or risk profile used to determine pricing.
















TABLE 7





Marketing
















Description:
This capability entails the processes for marketing the 



products, services and brands. These include conducting 



market research and analysis in order to develop and 



execute marketing initiatives such marketing campaigns 



and targeted advertising activities.


Basic Criteria:
Marketing Data Foundation:



Marketing and promotional efforts are using generic 



market information and intelligence to a limited extent.



Marketing IT Support: Standard productivity tools are 



used to collect and consolidate marketing data.



Campaign Focus:



No customer segmented marketing, no differentiated 



campaigns.



No formal process for marketing campaign design.



Campaign Planning Time:



Long planning lead times for campaigns.



Campaign Monitoring:



Little application of prior campaign learning. No formal 



response tracking.


Competitive
Marketing Data Foundation:


Criteria:
Marketing and promotional efforts target market segments 



in an industry wide format. Detailed market information 



and business intelligence is used to distill key insights.



Customer information is collected via transactional 



systems and addresses specific requirements.



Marketing IT Support:



Basic data mining facilities are in place for analysis of 



customer insight.



System support exists to assist or automate marketing 



activities (e.g., list generation).



Campaign Focus:



Campaign Management is used to foster the Marketing 



impact.



Increased use of targeted vehicles (e.g., email, direct 



mail), but limited message targeting. Marketing targeted 



to broad segments Marketing processes exist, but are 



inconsistently applied.



Campaign Planning Time:



Inconsistent planning lead times for campaigns



Campaign Monitoring:



Campaign results are tracked and monitored. Response 



tracking used to plan future campaign efforts.


Market Leading
Marketing Data Foundation:


Criteria:
Information at market and customer level is obtained 



to allow for targeted analysis, cross-selling, account 



planning, marketing and promotions.



Marketing IT Support:



Marketing applications support easy access and 



distribution of information to dedicated target groups. 



Advanced data mining capabilities and competitor 



tracking tools are available.



Full integration between marketing, sales, and 



customer service programs.



Campaign Focus:



Rigorous campaign management to outperform 



competitors.



One on one marketing. Customers finely targeted, 



with appropriate messages geared to customer 



segments.



Closed loop, repeatable and consistent processes 



in place for the marketing program.



Campaign Planning Time:



Short planning lead times.



Campaign Monitoring:



Analytics from previous campaigns used as input 



when designing future campaigns.



Consequent analysis and re-adjustment of Marketing 



spend.
















TABLE 8





Sales
















Description:
This capability entails all the processes that are necessary 



to sell the organization's products and services. This 



covers creating a sales plan/strategy, preparing for 



customer contact, executing sales activities 



(recommending and demonstrating products and 



services, etc.), and analyzing sales performance 



to ensure that sales objectives are being met.


Basic Criteria:
Sales planning:



Planning is done standalone without being aligned 



with other capabilities.



Sales processes:



Product based sales support.



Product based sales execution and objectives (eye on 



only one prize).



Account Management:



Product based business case. Individual account based 



management of contract terms and conditions (focus 



on the individual sale).



Sales Activities Coordination:



Sales activities are not systematically tracked. Only 



limited information about number of leads and 



contracts available. This activity is substantial 



manual effort. No historical information available. 



Manual handling of quotations.



Customer Data Use:



Limited use of customer data.



Sales Force Compensation:



Performance appraisals have little or no impact on 



salary. Fixed compensation approach.


Competitive
Sales planning:


Criteria:
Some alignment activities are performed between Sales 



Planning, Network Planning, Capacity Planning, 



Operations and Budgeting capabilities. However no 



joint planning is feasible as planning is performed on 



scattered applications.



Sales processes:



Consultative, generic solution sales support.



Combined product based sales execution and objectives 



(eye on a couple of prizes).



Account Management:



Account based business case. Central management of 



all customer contract terms and conditions (focus on 



the collective whole).



Sales Activities Coordination:



Sales activities supported by standalone applications 



that allow visibility of customer profitability, history 



and buying behaviors across modes. Tool support 



for quotations and RFQs. is available.



Customer Data Use:



Different sales approach for each customer segment.



Sales Force Compensation:



Some use of variable compensation tied to selling and 



service KPIs.


Market Leading
Sales planning:


Criteria:
Full IT integration supports collaborative planning 



between capabilities.



Detailed collaboration and optimization approach is 



in place.



Sales processes:



Consultative, industry solution based sales support.



Solution based sales execution and holistic account 



execution and objectives (eye on the big prize).



Account Management:



Jointly defined business case with shared exposure. 



Central management of all customer contract terms 



and conditions and their relationships to other contracts.



Sales Activities Coordination:



Networked sales force automation tools allow for global 



visibility of deals, leads, quotations and RFQs. Business 



intelligence solutions provide information at market and 



customer level to allow targeted cross-selling and account 



planning. Prospects tracking is performed.



Customer Data Use:



Insight into individual customer value/profitability, 



behavior, and preferences is leveraged to personalize 



customer interactions in real-time.



Sales Force Compensation:



Significant variable compensation as a percent of total, 



highly dependent on KPIs, including customer-centric 



measures.
















TABLE 9





Booking and Order Management
















Description:
Booking and Order Management entails all the 



interfacing activities required after the customer 



has agreed to a sale. This includes capturing the details 



of the order, validating the order can be fulfilled, 



verifying the order is correct, processing the order, 



releasing the order so that it can be fulfilled, verifying 



that the order has been fulfilled and performing of analysis 



on the entire order fulfillment process. This includes 



customer booking requests (for a capacity) and for orders 



(contract).


Basic Criteria:
Data Entry Performance:



Mostly manual order data entry performed into local 



systems.



Simple order validation by system.



No central order database.



Status and Workflow:



View and change order status not centrally possible. 



Basic workflow components.



The order tracking system is manual and inaccessible to 



customers.



Information is shared internally only in the supply chain 



segment which owns the data.



Regular FTL Bookings (Point to Point):



Managed as single shipments/capacities.



No systematic management of lead and loading times and 



event management.


Competitive
Data Entry Performance:


Criteria:
Multiple channels (manual, EDI, web-based) allow for 



automated order data validation by the system. Some 



manual verification on certain data categories is still 



required.



Order entry system linked to customer profiles, 



contract database and production systems: Pre-filled order 



templates enhance validation and prequalification of 



orders.



Automated order confirmation. Ability to consolidate 



multiple orders.



Automated reservation of capacity needed in operations.



Status and Workflow:



Enhanced workflow functionality including alarm and 



event management.



Tracking is automated and visible throughout the 



organization.



Customers do have access only through call centers.



Information is shared internally across the whole supply 



chain.


Market Leading
Data Entry Performance:


Criteria:
Customer order integration via EDI, Customer 



Automation Systems, or website.



Full integration: Automated order confirmation, price 



calculation and scheduling.



Mapping of the end-customer profile for incoming 



third party orders (customer's customer orders).



Status and Workflow:



Order tracking is automated and visible throughout 



the organization and electronically to customers. 



Shortfall in supply is forecasted and proactively 



managed.



Customers have full Track and Trace and Proactive 



Monitoring and Reporting capabilities.



Real time Information shared between supplier and 



customer systems, including funds transfer, POS data.



Regular FTL Bookings (Point to Point):



Full system support. Lead and loading times as well 



as events are managed according to detailed guidelines 



and procedures.
















TABLE 10





Solutions Management
















Description:
The capability describes the definition, deployment and 



management of non-standard, customer-centric products, 



services and solutions.


Basic Criteria:
Requirements Management:



Product definition and operational requirements available 



only on a high level.



Development takes only internal requirements into 



account: participating external partners are not properly 



informed and controlled.



Collaboration:



Limited communication between customers, partners and 



operational staff.



Insufficient coordination of milestone and product rollout.



Solutions Development Environment:



Only little tool support for collaboration and operations 



design.



Solutions Management Quality:



Products are considered implemented but related service 



commitments are not ensured throughout the whole 



supply chain.



Agility:



Long product lead times: New products or solutions 



cannot be implemented as fast as needed.


Competitive
Requirements Management:


Criteria:
Solution definition and operational requirements are 



defined on a detailed level.



Operations manual for each product/service has been 



developed and communicated to operations.



Collaboration:



Coordination and communication across all parties.



Milestones and project plan/roll-out is aligned with 



Marketing and Product Management capability.



Solutions Development Environment:



Technology is consistently leveraged to improve/extend 



services with a view to improve business performance.



Solutions Management Quality:



Product related services are ensured throughout the whole 



network. The product is properly integrated.



Service partners are aligned in order to support the 



product.



A business case is available and regularly updated to 



reflect real costs and benefits.



Agility:



Time to market issues are addressed.


Market Leading
Requirements Management:


Criteria:
New advanced solutions are designed, developed and 



launched jointly with key customers.



Technology and new opportunities are consistently 



leveraged to improve services and performance.



Collaboration:



Interests of stakeholders are properly managed for 



smooth collaboration.



Open and team oriented working environment.



Solutions Development Environment:



Rapid new service introduction enabled by methodology 



and early ‘fit’ design.



Solutions operational costs to serve are known and 



controlled.



Solutions Management Quality:



Service quality KPIs are defined and monitored 



(with roll-out).



Product operational costs to serve are fully 



known and controlled.



Continuous follow-up activities to improve 



product and service.



Agility:



Optimized high speed product development. 



Marketing takes development time into account 



during Marketing Plan.
















TABLE 11





Customer Service
















Description:
This capability involves the processes required to service



customers and measuring the service effectiveness.



Customer care is administered, customer accounts 



and customer profiles are managed, and warranty/



insurance and returns are processed.


Basic 
Customer Relationship Management (CRM):


Criteria:
Customer satisfaction only polled on ad-hoc basis.



No process for customer satisfaction improvements.



Service Performance:



Service level agreements are adopted by specific 



requests from key accounts.



No specific processes or systems are available to 



capture customer service performance.



Customer Specific Service Levels:



No customer differentiation, e.g., ABC customers.



No customer personalization.



Customer Service Quality:



Customer/Partner service initiatives are reactive in nature.


Competitive
CRM:


Criteria:
Regular surveys sent to customers with improvement 



suggestions.



Service Performance:



Key performance indicators are developed at the



regional level to support verification of customer 



service performance.



Consistent processes and systems are in place to 



capture data automatically with some manual 



intervention for service levels.



Customer Specific Service Levels:



Adjustments to a limited extend in service procedures 



for premium customers.



Customer Service Quality:



Customer information requests are handled dynamically.



Customer insight used to shape static customer experience.



Focus on relationships and value-add services.


Market 
CRM:


Leading
Customer satisfaction is closely monitored and relationship


Criteria:
management procedures are defined. Value contribution is



continuously optimized over the full life-time of the customer.



Service Performance:



Key performance indicators on global level. Fully automated 



capture of service performance.



Processes and procedures for around the clock service 



performance and peak times exist.



Customer Specific Service Levels:



Customer service performance is differentiated to 



customer needs.



Highly differentiated treatment of customers based on 



revenue and profitability.



Service performance is adjusted to customer groups.



Customer Service Quality:



Interactive, closed loop one-stop problem resolution. 



Proactive and interactive service established based on 



customer information.



Adequate information and empowerment to dynamically offer



incentives to retain high value customers planning to defect.



Using customer service to strengthen overall value 



proposition.



Virtual access channels (anytime, anyhow, anywhere).


Description:
This capability involves the processes required to service 



customers and measuring the service effectiveness. Customer 



care is administered, customer accounts and customer profiles



are managed, and warranty/insurance and returns are 



processed.


Basic 
Costs to Serve:


Criteria:
There is some understanding of the cost to serve 



customers/customer segments but costs are often merely 



allocated to products.



Claim/Complaint Centralization:



Back office processes are executed in the local facilities.



Claim/Complaint Tracking and Processing:



All transportation claims are manually tracked and processed.



Claim/Complaint Process:



Only basic descriptions of claims and complaints processes 



and guidelines are available.



Claims and complaints processes are distributed over 



several business functions.



Claim/Complaint Performance:



There is no visibility on claims and complaints performance.



Claim/Complaint Human Resources:



There is no specialized staff for claims and complaints 



management.


Competitive
Costs to Serve:


Criteria:
There is an understanding of the cost to serve customers 



which is based on a contribution level analysis for each 



customer/customer segment.



Claim/Complaint Centralization:



Back office processes have been centralized.



Claim/Complaint Tracking and Processing:



Automated claim tracking process.



Service representative are system empowered to resolve 



issues.



Reminders and follow-up actions are automatically generated.



Claim/Complaint Process:



Claims and complaints processes and guidelines have 



been defined on a case by case basis.



Claim/Complaint Performance:



Goods investigation processes have service level agreements 



(e.g., same day). Some claims and complaints key 



performance indicators are measured like e.g. 



the time to manage a claim.



Claim/Complaint Human Resources:



Dedicated skilled staff for claims and complaints 



management.


Market 
Costs to Serve:


Leading
There is a full understanding and control of the cost to 


Criteria:
serve all customers based on Activity Based Costing 



methodologies for all direct and indirect costs.



Claim/Complaint Centralization:



See Competitive Criteria.



Claim/Complaint Tracking and Processing:



Proactive and customer-focused claims resolution 



with automated submission and tracking systems.



Claim/Complaint Process:



Support tool with policies and guidelines which 



supports the staff during their work and increases efficiency.



The support tool is fully integrated with claims and 



complaints systems and provided context sensitive help 



and guidance to the staff.



Claim/Complaint Performance:



Key performance indicators are monitored automatically. 



Reporting and follow-up facilities are in place in order 



to continuously improve performance. Trend analysis on 



any category of claims or complaints can be performed.



Claim/Complaint Human Resources:



Dedicated staff is foreseen which is skilled. 



Accountability of individual employees to resolve 



claims and complaints courteously and fairly is ensured.
















TABLE 12





Invoicing
















Description:
Invoicing refers to order-to-cash payment collection:



invoicing preparation, delivery and investigation 



processes.


Basic 
Invoice Distribution:


Criteria:
Paper based invoices.



Multiple customer invoicing interface points within a country.



“Bill to” address can be different from customer address.



Invoice Consolidation:



No consolidation of transactions.



Rate Calculation:



Restrictions in rate calculation of basic or additional 



services. Services are rated stand-alone having no 



dependencies with other services. For international 



shipments manual split of duty and VAT for freight is 



performed.



Purchase order and non-purchase orders are 



possible to be invoiced.



Pre-Invoice:



Pre-invoice can be created in order to avoid credit 



notes after the invoicing. Reason is bad alignment of 



additional surcharges with the customer.



Self-Invoicing:



Customer cannot use self-invoicing option.



Customer Master Data:



Master data only optimized when errors detected.


Competitive
Invoice Distribution:


Criteria:
Outsourced invoice printing and distribution has 



been considered.



Still multiple customer invoicing interface points 



within a country.



Invoice Consolidation:



Invoice printing/distribution is consolidated in order 



to take full advantage of bulk mail discounts.



Customization of invoicing facilities is provided for 



key customer, e.g., invoicing separately for each 



customer's business unit.



Rate Calculation:



Restrictions in rate calculation of basic or additional 



services: Services are rated stand-alone having no 



dependencies with other services.



For international shipments manual split of duty and



VAT for freight is performed.



Pre-Invoice:



No pre-invoicing is necessary as invoicing stable and 



additional surcharges aligned with customers.



Self-Invoicing:



Customer can use self-invoicing option.



Customer Master Data:



A regular process for master data maintenance is in place.


Market
Invoice Distribution:


Leading
No paper-based invoice is needed anymore, payment 


Criteria:
can be made from EDI information; online approval for 



exception invoices over predetermined tolerances.



Invoice Consolidation:



Invoices can be consolidated for services provided by



third parties over other distribution channels.



Single invoice reflects charges for all transactions, 



on customer request across business units.



An invoice can be created for a customer for all services 



provided within a region or all over the world.



Rate Calculation:



Proper invoicing of away collection (pick-up in 



country A, delivery in country B, invoicing/customer 



residing in country C) is fully supported.



Complex rating rules are supported like multi-



dimensional tariffs, time bands and event segmentation.



Tariff change can be applied within an invoicing period.



Customer Master Data:



Customers can be required to complete their master 



data online.









The following Tables 13-20 provide an explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the enablement platform 104.







TABLE 13





Capacity Planning
















Description:
This strategic planning capability contains all 



activities required to forecast demand, determine 



the capacity required to profitably satisfy the 



demand, identify missing or excess capacity and 



decide whether to make or buy respectively sell 



or use the capacity. 



Simulations and what if scenarios are used to run 



different models and determine the most profitable 



way to meet the expected demand. This capability 



has a strategic, long- to mid-term time horizon, in 



which forecasts are continuously being concretized 



and capacity planning decisions are reviewed, 



adjusted and cascaded into lower-level planning



cycles.


Basic 
Demand Determination:


Criteria:
Demand forecasting is based on historical trends only.



Each facility/division performs an individual forecast.



Forecasting is a manual task using spreadsheets; 



statistical tools are not available/used.



Forecasting techniques are judgmental and 



accountability is unclear/ineffective.



Forecast Reliability:



Reliable sales forecasts cannot be determined from 



Sales Planning resulting in a high degree of 



forecasting errors.



Higher spare capacities foreseen to manage demand variance.



Integration:



Capacity planning process is not effectively integrated with 



Sales Planning, Marketing or Operations capabilities.



Multiple forecasts exist for different functional purposes.



Frequency:



High-level capacity planning is tailored on yearly basis; its 



accuracy is not scientifically measured.


Competitive
Demand Determination:


Criteria:
Marketing insights (trends, events), sales forecasts, and 



external sources are used in order to forecast demand.



Volume and capacity are forecasted consistently 



across facilities.



Multiple algorithms are used to detelmine forecast.



Forecast Reliability:



Capacity planning can be forecasted to a certain extend 



in time and volume based on regularly updated sales 



and revenue figures.



Figures have probabilities assigned, and variance of 



historical data is measured.



Statistical techniques are well understood by users; 



specific data characteristics are evaluated.



As a result spare capacities can be reduced.



Integration:



Capacity planning is key input into an integrated 



planning process; all relevant resources are modeled, 



including space, labor, freight volumes, production, etc.



Operations managers and supervisors have access to 



forecasts and use them to adjust weekly/daily plans.



Tools not yet fully integrated, require manual alignment.



Frequency:



Regular update of capacity plan is performed.



Feedback is provided to forecast input providers through 



an exception based review process.


Market 
Demand Determination:


Leading
Demand is forecasted using statistical methods for 


Criteria:
trend analysis, including third party information 



and (real time) POS data.



Sales forecasts obtained base on production forecasts 



of (key) customers wherever possible.



Utilization of early demand signals or leading indicators 



for new products to extrapolate total demand.



Forecasting accountability spread across corporate boundaries.



Forecast Reliability:



Multi-level aggregation capacity planning is tailored 



continuously and forecast errors are monitored, based 



on tracking signal and number of manual overrides.



Shipment volumes are prioritized, e.g., by product 



code in order to compensate demand variations.



Integration:



Joint collaborative planning with Sales Planning, 



Marketing or Operations capabilities supported by 



fully integrated tools, e.g., to suggest alternate schedules.



Collaborative planning approach includes clients, 



partners and suppliers.



Integration of real-time demand information.



Frequency:



Capacity plan is continuously improved based 



on updated demand figures and probabilities.
















TABLE 14





Network Planning
















Description:
This strategic capability involves modeling and (re-)designing



the network by performing cost evaluations of locations, 



what-if analysis of current territorial divisions, transportation 



network analysis, and positioning of terminals and 



distribution centers, sorting facilities as well as 



identification of strategic partnerships, multi-modal, 



round-flow and consolidation options. The network plan, 



being an output of this activity, balances the goods flows 



between the recommended facility and provides a routing



table per product type on facility level.


Basic 
Network Complexity:


Criteria:
Simple mono-modal national network based on 



historically grown structures, processing presence 



in each (local) geography served.



Investment and Savings Detection:



Occasional identification of investment or savings 



opportunities.



Planning Aspects:



Planning is based on expected volumes and available 



capacities only.



Network planning is of tactical, rather than strategic 



nature.



Strategic planning takes place in reaction to major 



discontinuities or marketplace events.



Planning is done without standard tools and each 



processing center may have different format of plans.



One-size-fits-all philosophy towards processing 



centers; each center had nearly identical processing 



plans.



Back and round flows are subject of investigation.



Network plan is verified against service commitments 



(e.g., day + 1 delivery within the country).



Average transit times between terminals and hubs 



are taken into account during planning activity.



Integration:



Network plan adapted based on input from operations.



Partner integration is not considered/feasible.


Competitive
Network complexity:


Criteria:
Regional network with limited flexibility. The network 



is not tailored to specific customers or customer segments.



Inter-modal options are considered based on a rough 



calculation scheme.



Multiple routing options are supported for overload 



management but without further differentiation 



(e.g., by product code).



Some variability in scheduling plans at facilities,



allowing capacity to be shared across the network.



Investment and Savings Detection:



Structured process for identification of investment 



or saving opportunities.



Planning Aspects:



Thorough analysis of vulnerabilities, dependencies 



and sensitivity is performed; strategic planning 



occurs periodically.



Appliance of what-if scenarios. Sorting time-lags at 



hubs and terminals are taken into account.



Outsourcing of network lines is a considered option.



Standard tools are in place to help with the short 



term planning (focus on data collection).



Integration:



Mid-term sales forecasts considered for network 



planning, alignment with capacity planning.



Key partners are integration to various extends into 



the network plan.


Market 
Network complexity:


Leading
Global network strategy under proactive reviews.


Criteria:
The regional or global network is planned inter-modal. 



Partners are fully integrated within the network plan.



Varying routings can be determined based on product 



code/service level of shipment (e.g., standard deferred 



shipments vs. time definite shipments).



Investment and Savings Detection:



Network simulation is a significant input into 



M&A decisions.



Product flow and locations across the supply chain 



are optimized of cost, quality and service parameters.



Planning Aspects:



Customer and product SLAs and various optional 



constraints considered in the planning process.



Network is flexible and therefore adapted to 



demand pattern changes, seasonality or terminal 



unavailability; outsourcing is applied where 



appropriate.



Simulation tools are used applying strategic or 



heuristic approaches.



Analytical tools support longer-term planning 



processes to understand the flexibility of the entire 



network.



Integration:



Fully integrated Capacity and Network Planning.



Partners are fully integrated into the network plan.
















TABLE 15





Production Planning
















Description:
Production Planning is a tactical planning level where 



pick-up and delivery zones are determined and according 



pick-up, delivery and network tours are pre-planned. If there 



is varying supply/demand in different geographical regions 



the tactical balancing of equipment is investigated.



An integrated production plan for resources and equipment,



including sorting activities, within the terminals is created 



and managed.


Basic 
Planning Approach:


Criteria:
Planning process is reactive due to limited information 



and visibility of future demand.



Manual planning in monthly time periods with no 



simulation capability.



Systems not integrated across multiple-plant environments.



Transportation plans are developed for either inbound 



or outbound direction only.



Decisions based on cost or service alone; Incomplete cost



control/accountability (e.g., proper cost allocation).



Planning Flexibility:



Plans are static for long timeframes within a facility.



Sort plans created without analytical tools; based on volume



observations.



Most processes are done manually with little tracking of 



quality or cost.



Reluctant in partnering with service providers.



(Systems) Integration:



Small amount of data or no details collected for defining the



transportation plan.



Little, or no information is gathered from freight bill for 



management reporting or other uses.


Competitive
Planning Approach:


Criteria:
Planning is done for multiple time horizons with 



varying time buckets and product levels.



Detailed planning tool for short term production scheduling.



Business requirements planning with integrated feedback 



loops; long-term planning reflects seasonality and cyclicality.



Primarily driven by demand-based (pull) scheduling 



techniques.



Inbound shipments are tracked and inbound loads are 



manually matched to outbound loads for the own fleet.



Planning Flexibility:



Sort plans can be changed to some extent, based on a 



particular processing shift or time of year.



(Systems) Integration:



Facility-wide integration of production data.



Partners are provided with a rolling forecast of transportation



requirements monthly.



Accurate data available without the ability for real time report



generation.



Business-focused negotiation but regionally/locally-managed



relationships.


Market 
Planning Approach:


Leading
Simultaneous optimization of all planning activities.


Criteria:
Customer/partner input submitted for optimal cost/service 



trade-offs.



Short term requirements used to opportunistically 



shift modes, carriers, schedules.



Planning Flexibility:



Sort plans can be changed based on the actual 



shipments, analyzing large data to determine the 



correct machine routings.



Automated transportation communication with 



partners and customers triggers flexible planning capabilities.



(Systems) Integration:



Integrated systems for all stages of operations, linked to 



inventory and materials planning - across the enterprise.



Production schedules integrated with customers to 



develop mutually beneficial planning horizons or 



to support JIT sourcing.



Create partnerships with service providers and share



productivity gains.



Excellent data available; contains complete, 



real-time production,



carrier and other relevant data.
















TABLE 16





Scheduling
















Description:
Scheduling deals with the operational planning for customer 



orders and pick up requests. This includes the creation of 



transport orders for every leg of a specific customer order 



and the allocation of orders to pre-build trips as well as 



ad-hoc transport planning especially for freight shipments.



Resources, like people, fleet, equipment or external 



partners/suppliers, are assigned to fulfill the planned 



transport and excess or missing capacity is traded on 



the spot market. Where required, detailed routing 



information is provided to execute a transport plan. 



Based on the planned transportation schedules, the 



production plans are reviewed and if necessary 



adjusted to address the actual transportation requirements.


Basic 
Scheduling Flexibility:


Criteria:
Vehicle routes are rather fixed for the defined planning 



period (e.g., bi-annually).



Basic constraints management with regular constraints 



identified and limited visibility to the schedulers.



Alternative schedules not possible (or very time consuming).



Scheduling alternatives only considered to address 



service/performance issues.



Geographical Range:



Scheduling is done locally or between few terminals.



Scheduling Considerations:



No time slotting in terminals.



Frequency as well as peak demand volumes and timing 



are not considered.



No formalized contingency plan in place.



Downstream fulfillment constraints (warehouse, 



shipping, etc.) are not considered.



Backhauls not considered when planning shipments.


Competitive
Scheduling Flexibility:


Criteria:
Maintenance slots, vacation, preferred teams are taken 



into account for scheduling.



Time windows are established for in/outbound traffic.



Guidelines for short term flexibility are defined and 



according schedule updates ensured.



Scheduling is regularly reviewed and adjusted.



Overcapacity is actively managed between terminals.



Geographical Range:



Scheduling of vehicles is performed on a regional level.



Scheduling Considerations:



Capacity utilization is monitored.



Resources (vehicles, equipment, human resources) are 



categorized and classified and mapped with detailed 



criteria in order to fulfill the demand.



Contingency plan based on experience and personal 



contacts rather than contracts.



Maintenance slots, vacation, preferred teams are taken 



into account for scheduling. Time windows are 



established for in/outbound traffic.


Market 
Scheduling Flexibility:


Leading
Short term capacity forecasts are used to 


Criteria:
opportunistically shift modes, carriers and schedules.



Automated scheduling forecast based on orders and 



bookings - bottlenecks are proactively managed; time 



windows are scheduled to the half hour.



Continuous planning cycle which can quickly react 



to changes in forecasts or other parameters.



Geographical Range:



Scheduling of vehicles is done on regional or global level.



Scheduling Considerations:



Customer/partner input for optimal cost/service 



trade-offs is used.



Documented contingency plans for action. Alternative 



relationships developed.



Centralized and automated rule-based dynamic routing



and scheduling.



Advanced constraints such as business objectives, 



customer priorities, financial impact, and alternate 



routings are optimized.


Description:
Scheduling deals with the operational planning for 



customer orders and pick up requests. This includes 



the creation of transport orders for every leg of a specific



customer order and the allocation of orders to pre-build



trips as well as ad-hoc transport planning especially for 



freight shipments.



Resources, like people, fleet, equipment or external



partners/suppliers, are assigned to fulfill the planned 



transport and excess or missing capacity is traded on 



the spot market. Where required, detailed routing 



information is provided to execute a transport plan.



Based on the planned transportation schedules, the 



production plans are reviewed and if necessary adjusted 



to address the actual transportation requirements.


Basic 
Scheduling Methods:


Criteria:
Manual and static schedules base on “intuitive” 



judgment and “works as always”. No continuous 



review of schedules.



Develop schedule without analytical tools/systems support.



Schedule bases on historical volumes (same period last year).



Standalone systems in place to plan and report on scheduling



operations.



Resource Assignment:



Human resources, equipment and vehicles are managed 



manually.



“Bottleneck” resources are viewed as common 



constraints across all product lines.



FTL/PTL Disposition:



FTL/PTL requests are checked and allocated manually.



Free spot capacities are offered informally.


Competitive
Scheduling Methods:


Criteria:
Simple optimization systems. Use of an analytical tool. 



Supporting Systems partially integrated.



What-if scenarios are validated against the concrete 



scheduled movements (based on historical data and 



expected growth).



Yearly review cycle to re-plan based on changes. 



Otherwise schedules are reviewed at “crisis” times



and changed to reflect short-term fluctuations.



Resource Assignment:



Human resources, equipment, vehicles are managed 



in the context of daily capacities.



Resources (vehicles, equipment, human resources) 



are categorized and classified and mapped with detailed 



criteria in order to fulfill the demand.



FTL/PTL Disposition:



FTL requests are checked and allocated manually and free 



spot capacities are offered informally.



Capacity utilization is actively monitored.


Market 
Scheduling Methods:


Leading
Scenario based computer-aided simulation: network 


Criteria:
management tool to establish parameters, EDI or web 



links to share real time informationon requirements and 



capacities.



Full systems integration (incl. analytical tools) allows 



consideration of all relevant areas/constraints.



Sophisticated scheduling capabilities available in order 



to link human resources, vehicles and equipment to daily



capacities taking all requirements into account.



Use of advanced optimization methods and 



algorithms with a holistic view of an entire operation.



Resource Assignment:



Locate and manage employees using real-time clocking 



information



Sophisticated scheduling capabilities available in order to 



link human resources, vehicles and equipment to daily 



capacities taking all requirements into account.



FTL/PTL Disposition:



Allocation of FTL requests automatically, just 



approval by dispatcher is required. Electronic support 



and integration with spot market where applicable.
















TABLE 17





Labor Planning
















Description:
Based on the required internal labor capacity, this capability 



deals with the planning of roster and shift schedules, planned 



resource availabilities to fill the determined slots and the 



management of peaks, adjustments and exceptions.


Basic 
Work Efficiency:


Criteria:
Labor efficiency is reviewed on a regular basis.



Employee Development:



Training foreseen on individual need. No structured employee



development.



Employee Satisfaction:



Team preferences are considered.



Planning Approach and Accuracy:



Jobs and positions are properly monitored. Required roles and



teams are properly foreseen to be scheduled.



Labor planning is aligned with scheduling.



Processing issues determined by managerial observation.



Employees managed and located by walking the shop floor.



Labor plan developed based on historical labor usage and 



manager requests; no performance reports.



Planning Flexibility:



Shortages (e.g., illness) in staff are only managed in 



operations capabilities on ad-hoc basis.



Staff foreseen which is not always fully utilized in 



average and low peak time periods.


Competitive
Work Efficiency:


Criteria:
Labor efficiency is reviewed on continuous basis.



Results impact scheduling and mid-term roll-on/



roll-off requests to HR department.



Employee Development:



Thorough understanding of training requirements and 



actual training performed (incl. coaching).



Employee Satisfaction:



Vacation planning and vacation backlog taken into 



account for scheduling.



Planning Approach and Accuracy:



Considers long-term contracts, temporary employments, 



contracts or personnel from human resources agency.



Exact staffing levels are forecasted and additional human 



resource costs are managed.



Planning Flexibility:



Processes and fall-back plans in place to eliminate 



unforeseen manpower shortages.



Part-time workers are used on ad-hoc basis to 



manage demand peaks.


Market 
Work Efficiency:


Leading
Efficiency tracking is automated and integrated with 


Criteria:
HR planning.



Employee Development:



Training curriculum for employees defined. 



Progress measured.



Employee Satisfaction:



Labor planning takes employee preferences into 



account (work-life balance).



Work time models are defined and implemented.



Planning Approach and Accuracy:



Long-term strategies are developed and they are 



refined with “what-if” scenarios.



Optimize utilizing advanced numerical 



methods and algorithms.



Optimized labor plan based on daily, weekly, and 



seasonal volume variability and union/specific labor rules.



Discover processing issues as they occur from real-time 



data and predict/prevent future issues.



Planning Flexibility:



Regional labor management, balancing between 



terminals and hubs or teams.
















TABLE 18





Operations Management
















Description:
The capability identifies critical business processes and 



establishes monitoring/reporting mechanisms (linked to 



track and trace and exception management capabilities) 



in order to enable seamless operations.


Basic Criteria:
Operations Visibility:



Little or no formal measurement approach or collection 



processes.



There is limited internal/external collaboration and 



optimization initiatives.



Simplistic measures, if any, for resource utilization.



Metrics are internally focused: terminal utilization, 



vehicle utilization and production variance.



Reporting Enablement:



Overall productivity, service, and cost measurements 



are tracked; performance to budget is reported.



Limited service objectives.



Performance measures are focused on individual 



performance and not related to business objectives.



Data passed between organizations is not automated.



All incidents are managed by phone or radio equipment.



Pro-active Monitoring:



Temporary teams are assembled to manage large-scale 



emergencies and disasters at individual nodes.



KPIs are measured monthly or quarterly.



Most exceptions are not known until a service target is 



missed.


Competitive
Operations Visibility:


Criteria:
Increased visibility into business processes, such as 



inventory, logistics and orders.



External partners' (Vendors/carriers) performance is 



tracked.



Reporting Enablement:



Individual department/operator productivity and 



quality measurements are tracked.



Integrated data from multiple systems within the 



enterprise are used to monitor key events in the 



supply chain.



Some semi-automated cost and service tracking against 



actual and budget.



Performance measures span the internal supply chain 



but mainly from a high level strategic perspective.



Nodes have systems that provide data from other nodes 



that can be used to anticipate deviations from plan.



Electronic communication with remote employees is 



possible over wide-area (at least mono-directional) 



hand-held device.



Pro-active Monitoring:



Coordination on exceptions between nodes at an area 



or district level.



Some key performance tracking (e.g., MPG, 



maintenance cost, etc.).



Internally set service goals.



Some ability to alter plans given sufficient notice of an 



exception.


Market Leading
Operations Visibility:


Criteria:
Detailed productivity, service, and quality measures across 



the organization and including third parties.



Reporting Enablement:



Reporting processes and systems allow activity-based cost 



reporting.



KPI's are tied to individual, department, and company 



performance goals.



Ability to integrate the bi-directional flow of data within 



key supply chain systems.



Central planning capabilities can fine-tune plans at 



upstream and downstream nodes to react to exceptions.



Incidents are managed by hand-held device and phone.



Pro-active Monitoring:



Exceptions at any node in the network are tracked and 



managed by specialized group or organization.



Preventive mechanisms and warnings support the 



dispatcher.



Automated response; rules can be established to trigger 



responses to alerts without human intervention.



Exceptions at one node trigger automatic notification to 



other nodes that will be impacted.



Operations metrics are communicated to/shared with 



key third parties (partners, customers, suppliers).
















TABLE 19





Partner and Supplier Management
















Description:
The capability contains all interaction-driven activities 



between an organization and its partners and suppliers 



from portfolio management and tender processing to 



relationship management.


Basic Criteria:
Integration:



No collaboration, e.g., partners/suppliers just execute 



parts of the transportation chain having only limited 



insight into service commitments originally made to 



customers, e.g., by 3PL.



Locally managed relationships by individual facilities, 



not integrated into wider network and/or limited 



flexibility to include regional differences.



Products or services are partially offered under the 



partner's brand.



Selection process:



Selection criteria is based on price and quality only.



Many partners and suppliers within the portfolio.



Establish and track Key Metrics:



Only cost and service/product delivery are tracked.



Internal and external Benchmarks:



No benchmarking analysis is carried out.



Performance Feedback:



No formal or scheduled feedback takes place with 



suppliers. Supplier is contacted only when a problem 



occurs.


Competitive
Integration:


Criteria:
Suppliers and partners are beginning to act strategically; 



they give more insight into their capabilities and flexibility 



options, work on common cost optimization goals (e.g., 



under/over capacities) and have full understanding of 



their responsibilities.



Detailed mutual understanding of activities and related 



costs.



Regionally managed relationships under common business 



umbrella.



Selection process:



Reduced number of partners or suppliers selected 



according to strategic or at least tactical goals set.



Strategic sourcing has reduced partners/suppliers but 



results are not communicated to users; “non-approved” 



companies are still utilized.



Business users are involved into the selection process.



Establish and track Key Metrics:



Quality, lead-time and delivery measures are commonly 



tracked in ERP system with periodic reviews to spot and 



improve on performance opportunities.



Internal and external Benchmarks:



Performance is measured against industry benchmarks.



Performance Feedback:



Specified feedback is shared with individual suppliers.



Feedback is tied directly to corporate goals.


Market Leading
Integration:


Criteria:
Partners and suppliers are integrated along the value chain 



into customer feedback analysis, failure analysis and other 



key functions.



Shared/integrated systems.



Collaboration in the realization of complex logistics 



solutions as well as in related strategic decisions.



Selection process:



Identification and selection takes place with emphasis 



placed on willingness/ability to develop long-term 



strategic relationship.



Selection criteria reflects a mix of requirements (service, 



cost, reliability, technology, etc.).



Sourcing of non-strategic goods/services outsourced to 



third party aggregator or procurement service provider.



Establish and track Key Metrics:



Key metrics are tracked globally, consolidated; real-time 



reporting.



Partners and suppliers track their own metrics, share and 



reconcile, and react pro-actively as necessary.



Internal and external Benchmarks:



Measurement against external benchmarks and against 



available partner/supplier base.



Performance Feedback:



Scorecard is provided at set frequency.



Continuous communication with partners/suppliers to 



improve efficiency or service levels and to drive 



innovations.
















TABLE 20





Settlement
















Description:
This capability describes monetary third party 



(supplier/partner and inter-/intracompany) settlement 



procedures for exchanged products or services: receiving, 



validating, preparing and sending settlements as well as 



clearing accounts through sending or receiving payments.


Basic Criteria:
Invoicing Mode:



Third parties invoices are checked manually.



No consolidation of transactions: multiple invoices from 



one partner/supplier per run.



Multiple settlement interface points within a region.



Accounts payable processes are disbursed throughout the 



organization (invoicing, approval).



Invoicing Options:



Third party partners can be invoiced on shipment level.



Restrictions in rate calculation of basic or additional 



services: Services are rated stand-alone having no 



dependencies with other services.



Data, Archiving and Investigation:



Third party supplier invoices are archived in local or a 



central facility and can be obtained on request.



Copies of each (paper-based) invoice is made and 



stored at multiple locations or departments.



Master data only optimized when errors detected.



Process Flexibility:



Departments are owners of the processes—errors are 



corrected at the back-end; much time spent chasing 



small-value items.


Competitive
Invoicing Mode:


Criteria:
Third parties can use self-invoicing. The third party has 



to check the invoice if it is correct.



Approval process in place but not rigidly followed.



The most common transactions can be managed 



electronically with the bigger partners.



Reduced, but still multiple settlement interface points 



within a region.



Invoicing Options:



Partners or third parties can be invoiced on other than 



shipment level, e.g., by stops performed during pick-up 



and delivery services.



Settlement customization is possible for key partners/



suppliers, e.g., invoicing separately for each business unit.



Outsourced invoice printing and distribution has been 



considered.



Data, Archiving and Investigation:



Third party invoices can be optically scanned and 



archived. Archived invoices can be viewed by staff 



and customer service.



Process Flexibility:



Not provided customer payments can be charged 



directly against the third party.



Invoicing is fully flexible to any pricing model, including 



dependencies between services. Discounts can be on a 



sophisticate level (e.g., service, bundle or event).


Market Leading
Invoicing Mode:


Criteria:
Electronic settlement is implemented. Full electronic 



payment and transaction management (e.g., transactions 



according to Bill of Lading).



Paper-based settlement is not needed anymore, payment 



can be made from EDI information.



Online approval for exception invoices over 



predetermined tolerances is common.



View purchasing and payables as one seamless process 



versus two distinct organizations.



Invoicing Options:



Settlement can take place for all services provided 



within a region or globally.



Invoice-less processing through use of ERS 



(evaluated receipts settlement where payment is made 



after matching receipt to purchase order).



Allow suppliers access to view status of payments.



Data, Archiving and Investigation:



Third party invoices can be obtained/viewed by the 



partner/supplier (self-invoicing) over the most 



important distribution channels.



Process Flexibility:



Complex rating rules are supported like multi-



dimensional tariffs, time bands and event segmentation.



Tariff changes can be applied within settlement period.









The following Tables 21-23 provide a continuing explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the enablement platform 104, and in particular, criteria for a sub-platform referred to as asset management.







TABLE 21





Facility Management (Asset Management)
















Description:
The capability describes the management of terminals, 



hubs, offices, cleaning, water, maintenance, or electricity. 



The facility portfolio is maintained and in- or 



disinvestment decisions are taken.


Basic Criteria:
Sourcing Model:



All facilities are property of the operator. Facility 



Management performed in-house and locally.



Facility Design:



Evolutionary layout/expansion.



Asset Evaluation:



Facilities are only evaluated with their booked value. 



No strategy or plan for asset portfolio. No assessment 



of market conditions is performed.



Security:



Facilities are just secured by entry checks. Non-



electronic badges.



Quality:



Facility maintenance services are locally hired resources. 



Individuals are working on best personal knowledge.



Operations:



No leverage on purchasing power. No facility 



deployment plan. Stand alone process or system to track 



and manage facility information.



Monitor and track facility occasionally.



No fragmented alignment with Capacity Planning, 



Network Planning and Scheduling.


Competitive
Sourcing Model:


Criteria:
Sell and lease back of facilities has been evaluated. 



Procurement takes place against a master business plan.



Facility Design:



For new facilities optimized layouts and design are 



implemented according to productivity and efficiency 



requirements.



Asset Evaluation:



Develop a sound understanding of a facility's economic 



life.



Security:



Usage of electronic badges with key functionality and 



security concept based on roles.



Quality:



Quality guidelines and inspection schedules for cleaning, 



catering, heating and sanitation are defined. Resources 



can be internal or external.



Operations:



Deployment is planned according to facility type. 



Facilities are regularly monitored in automated ways.



Limited alignment with Capacity Planning, Network 



Planning and Scheduling.


Market Leading
Sourcing Model:


Criteria:
Facility management itself is outsourced.



Facility Design:



Layout of facilities is designed for optimal handling 



capabilities and maximum throughput in processing 



facilities.



Warehouses and Storage locations are optimized in 



layout for storing goods.



Asset composition is aligned with market and sales 



strategy.



Asset Evaluation:



Regular market evaluation is performed in order to 



understand current value of available facilities. 



Financial analysis of optimum P&L impact taking 



account of cash flow objectives.



Security:



Security concept foresees biometric access checks for 



key/sensitive areas.



Quality:



External service provider is managed based on service 



level agreements.



Operations:



Advanced tools and technologies are used to manage 



and track asset.



Focus on service level, cost control and competitive 



advantage.
















TABLE 22





Fleet and Equipment Management (Asset Management)
















Description:
The capability describes the management of trucks, 



trailers, loading devices like containers, as well fork 



lifts, pallets, boxes, cages, tour devices. The fleet and 



equipment portfolio is maintained and in- or 



disinvestment decisions are taken.


Basic Criteria:
Sourcing Model:



All vehicles and equipment are property of the operator 



and are managed in-house.



Limited leverage on purchasing power.



Alignment:



No alignment with Capacity Planning, Network 



Planning, Scheduling, Maintenance, Repair and 



Overhaul capabilities.



Geographical Range:



Local and inconsistent fleet and equipment management.



Efficiency:



No consistent fleet and equipment management; manual 



and irregular tracking.



Fleet and equipment is very fragmented or homogeneous 



over the facilities, asset portfolio managed reactively.



Poor asset utilization, significant detention and loss; asset 



disposal upon convenience.



No asset deployment procedure available.



No limited asset lifecycle management and systems 



support for ALM and/or tracking.



Demurrage/Balancing of Loading Devices:



Manual and inconsistent management of demurrage 



and fees for loading helps, etc.



Staff loses overview on loading devices. Claims 



because customer's loading devices not send back.


Competitive
Sourcing:


Criteria:
Outsourcing and leasing have been considered as 



management and sourcing options.



Alignment Limited alignment with corporate goals 



and Maintenance, Repair and Overhaul capabilities. 



Incorporation of network requirements.



Geographical Range:



Regional fleet and equipment management, balancing 



between facilities.



Efficiency:



Consequent fleet and equipment management: reduced 



fleet and equipment types, incorporation of network 



requirements.



Key performance tracking in place. Periodic reviews 



are performed.



Demurrage/Balancing of Loading Devices:



Process for demurrage and loading device exchange 



with customers and partners manually but consistently 



executed.


Market Leading
Sourcing:


Criteria:
Out-/in-sourcing of fleet management is actively managed.



Asset portfolio (plan) fully aligned with market/sales 



strategy. Asset leases included in asset portfolio.



Procurement strategy with formalized bid process and 



strong relationship with asset vendors.



Alignment A well articulated fleet and equipment 



strategy is in place aligned with the Capacity Planning, 



Network Planning, Scheduling and Operations capabilities, 



market and fleet strategy.



Geographical Range:



Central fleet and equipment management with full insight 



into available assets.



Efficiency:



Full ALM and reutilization management of fleet and 



equipment assets.



Focus on service level, cost control and competitive 



advantage. Mixed fleet tied to requirements, rationalized 



network.



Advanced tools and technologies to manage and track 



assets.



System support integrated to planning functions.



Demurrage/Balancing of Loading Devices:



Automatic determination of demurrage fees and 



exchange balances of loading devices with 



customers and partners.
















TABLE 23





Maintenance, Repair and Overhaul (MRO) (Asset Management)
















Description:
The capability contains ad-hoc as well as planned and 



regular maintenance, repair and overhaul activities of 



fleet and equipment.


Basic Criteria:
Supervision:



Part-time manager. Shared, internal maintenance 



resources.



Productivity and Performance Tracking:



Manual, paper based.



No equipment, parts, and performance standards. 



No formal productivity measurement. No mechanic 



standards.



Cost Controlling:



Maintenance costs captured and tracked on aggregate 



level in broad categories.



Process Quality:



Equipment replaced when it breaks down or becomes 



too expensive to repair.



Spare Parts:



Forecasting non-existent or based on simple historical 



stocking levels. Each location responsible for planning 



and procuring their own spares, limited leverage of 



purchasing power.



Manual, paper driven records keeping for parts inventory.


Competitive
Supervision:


Criteria:
Full-time maintenance supervisor reports to operations 



manager.



Some outsourcing of MRO activities is performed.



Productivity and Performance Tracking:



Computerized maintenance records and warranty 



tracking. Begin automation of spare parts bank.



Cost Controlling:



Costs tracked by vehicle in major categories. Maintenance



efficiency tracking (implies standards).



Process Quality:



Time, mileage, age-based scheduling. Annual maintenance



schedules are available.



History-based rules on asset life; exceptions accepted. 



Beginning to implement statistical life-cycle modeling.



Spare Parts:



Begin of automating parts bank, reduce slow turning 



parts Inventory and service targets set with regular 



performance assessment.



Use of forecasting tools that incorporate parameters 



such as mean time between failure to develop stock levels.



Ability to share spare parts on an emergency basis; some 



equipment and parts standards developed.


Market Leading
Supervision:


Criteria:
Maintenance supervisor responsible for “profit/loss” 



performance of operation or outsourced MRO service 



provider's performance.



Productivity and Performance Tracking:



Standards based on thorough analysis and industry 



research.



Automated tracking of standardized spare parts 



inventory.



Cost Controlling:



Monthly reports detail costs by age, make, model 



in specific categories, with anticipated variance and 



exceptions bulletins.



Process Quality:



Proactive scheduling of preventive maintenance 



based on forecast failures, on-board diagnostics.



Statistical life-cycle analysis can forecast failures 



and determine acquisition and divestiture policies.



Spare Parts:



Spare parts are planned and administered across 



the entire network, with stocking strategies based 



on demand volume.



Performance standards developed through internal 



analysis and industry research for all equipment 



and major parts.



Fast moving parts held in “consignment”; reorder/



replenishment handled by supplier.









The following Tables 24-26 provide a continuing explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the enablement platform 102, and in particular, criteria for a sub-platform referred to as information and data management.







TABLE 24





Master Data Management (Information and Data Management)
















Description:
This capability deals with master and transactional data 



management as well as with address data and 



documents management.



Master Data Management includes the compilation of 



a corporate model, ownership, cleansing, maintenance, 



replication and purging of master and transactional data.


Basic Criteria:
Master Data Distribution and Maintenance:



Master data is maintained in the diverse applications, 



creating redundancies.



Customer data management is distributed and account 



data has to be entered several times in the different 



applications.



Individuals create useful processes, but no standard 



procedures exist across groups or locations.



Tools tend to be general-purpose software (Microsoft 



Excel, Microsoft Access) and no intensive data 



management software is in use.



Most data is not integrated, but some departments attempt 



integration efforts.



No data profiling, analysis, or auditing is used to 



determine data characteristics.



Data cleansing or standardization may occur in isolated 



areas or data sources.



Attempts to consolidate data (such as a data warehouse) 



requires scrap and rework due to data quality issues.



Data Security:



No official data privacy policy in place, which severely 



limits data sharing within the organization.



Security is controlled at line of business level.


Competitive
Master Data Distribution and Maintenance:


Criteria:
Shared master data layer provides a central repository 



for customer master data and references.



Data is standardized, consistent and measurable.



The most frequent updated data entities are replicated 



automatically to the listening systems.



Management understands and appreciates the role of 



data management in corporate initiatives.



Data management technology providers become strategic 



partners with the organization.



A dedicated corporate data management group maintains 



corporate data definitions, synonyms, business rules, and 



business value for data elements.



Enterprise data architects evaluate extensions of the 



shared master data layer and cost/benefit of application 



integration.



Data management goals shift from problem correction 



to problem prevention.



Ongoing data audits and data monitoring help the 



company maintain data integrity over time.



Relational data stores with integrated selection mechanism 



are used to feed analysis extracts.



Data Security:



An official data privacy policy in place.



Centralized security process and standards.



Access is controlled by role and authority.


Market Leading
Master Data Distribution and Maintenance:


Criteria:
Request/approval process for data exits.



Full definition and buy-in which data can be maintained 



by enterprise hierarchy level.



Data quality improvement has executive-level sponsorship. 



“Zero defect” policies for data collection and management 



are in place.



Procedures help the organization achieve the highest levels 



of data integrity.



Corporate data management tools are standardized.



All aspects of the organizations utilized the standard 



metadata and rules definitions created and maintained 



by the data management group.



Data models capture the business meaning and technical 



details of all corporate data elements.



Processes for continuous improvement of customer data 



and consolidation of customer accounts are available.



There is minimal data redundancy (duplicates <= 2%).



Data Security:



Data privacy policy is clearly communicated to customers.



Potential security violations are actively investigated.



Access is controlled by role and authority.



Security systems and policies are routinely audited to 



ensure they are functioning as intended.
















TABLE 25





Address Management (Information and Data Management)
















Description:
This capability deals with master and transactional data 



management as well as with address data and documents 



management.



Address data management deals with collection, cleansing, 



filtering, and usage of address data within the logistical 



core processes as well as for additional services.


Basic Criteria:
Address Data Distribution and Maintenance:



Address changes are re-active, initiated by carriers as 



they identify undeliverable mail.



New addresses are requested by residents and businesses.



Addresses are maintained in multiple systems.



New addresses take several weeks to synchronize across 



systems automated sorting center systems.



No de-duplication, address or name standardization, or 



other data cleansing methods are internally applied.



Duplicate individual and household records exist at all 



sub-system levels.



External agencies used to support data matching and 



address standardization/validation.



No sharing of address data; mail clients develop and 



use separate mailing lists.


Competitive
Address Data Distribution and Maintenance:


Criteria:
Address changes are initiated by consumers/clients 



via a non-automated process.



Addresses are maintained in a central repository, and 



each internal entity has access to import/use the data 



according to their needs.



Addresses are shared with large mailing clients on 



a periodic basis.



Some de-duplication, address, or name standardization 



is in place.



Data cleansing performed primarily in reaction to 



errors spotted.



Individual and household consolidation processes 



executed on a periodic basis.


Market Leading
Address Data Distribution and Maintenance:


Criteria:
Address changes are made in near real-time by



customers/partners/suppliers via Internet.



New addresses are setup through integrated processes 



with municipal planning and zoning entities.



Address additions and changes are automatically 



integrated at all levels of the supply chain, from 



sorting center machines to delivery unit management 



systems.



Dynamic data cleansing and consolidation exists at 



sub-system and repository levels.



Address data is synchronized daily.
















TABLE 26





Document Management (Information and Data Management)
















Description:
This capability deals with master and transactional data 



management as well as with address data and 



documents management.



Document management focuses on provision of 



standard documents and templates as well as 



workflow procedures and archiving of electronically 



and physical documents.


Basic Criteria:
Document Management:



The document generation process is manual.



No common procedures to manage documentation 



changes.



Difficulty to find the last version of documents. Project 



documentation is not synchronized with product 



information.



Document exchange with customers or partners is 



a manual process.



Inventory of document types, formats and applications 



across enterprise are not consistent.



Archiving of paper documents is done completely manual 



in local facilities. If a document is needed is must be send 



by FAX, original document or copy of document.


Competitive
Document Management:


Criteria:
Some processes are developed to automatically generate 



documentation with updated product information.



Use of standardized document folders and templates 



across some product configuration elements.



Document search cannot be executed across multiple 



disparate data sources.



Basic document management system capabilities are 



in place.



Archiving is outsourced (non knowledge).



Documents are archived using optical scan.



Document access according to user's role and data 



protection guidelines.


Market Leading
Document Management:


Criteria:
Development of a process that automatically generates 



the documentation with updated product information.



Standardized document folders and templates with 



reference to product configuration elements.



Improved change management by using a structured 



process.



Integrate project documentation in a single document 



repository with a classification system that facilitates 



document search.



Advanced document management capabilities. 



Electronic consolidation and forwarding of suppliers 



invoices to customers.



Archiving is fully integrated in the workflow of 



document management.



Archiving system is certified against international 



standards









The following Table 27 provides an explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the contract management platform 110.







TABLE 27





Contract Management
















Description:
This capability involves all the activities that are 



required to prepare, negotiate, process and manage 



contracts. It further outlines the importance of



standardizing contract structures and linking them 



into corporate-wide tariff and pricing grids.


Basic Criteria:
Contract price, terms, and conditions differ from 



site to site for the same items.



There is merely any contract standardization.



Paper contracts exist, but requestors are unclear



who preferred suppliers are.



Little electronic management of contracts. Printed 



documents travel via mail or fax for editing and 



approvals requiring manual data entry.



Disparate systems for customer and contract data.



There is no integration of contract data, tariff/



pricing grids, and booking/order management.



Individual purchase orders created without



reference to master contract or blanket PO.


Competitive
Long-term, company wide contracts exist for some


Criteria:
key items and customers/suppliers/partners.



Various contract types and blanket purchase orders 



established.



third party contracts are viewed as business 



relationships whose goals are aligned with



yours, sharing both risks and rewards.



Formal standardized service level agreements exist 



and are electronically implemented.



Customer and contract data are hosted in the same 



system.



Customer insight is available to support contract 



extension.


Market Leading
Global standardized contracts are in place; use is


Criteria:
mandatory.



Blanket PO use replaced by procurement cards 



and eProcurement.



Service management framework is in place which 



provides effective operations and continuous 



improvement.



Guaranteed business benefits sustained over 



period of contract and are electronically 



monitored.



Electronic exchange and approval with customers 



on their contracts is in place.



Contract data can directly be interfaced with the



billing system making real time adoption of



contracts feasible.









The following Tables 28-32 provide an explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the mail operations platform 112.







TABLE 28





Mail Production
















Description:
This capability area includes all processes related



to producing a mailing for a customer from



gathering content requirements to finally printing



and packaging the mailing. The mailing may be



produced as a one time event or it could be



regularly scheduled.


Basic Criteria:
Mailing Plan Development:



Customer requirements are collected manually



No pre-scheduling for mail production based on 



the requirement collected.



Mailing Design Development:



No template or historical working product can be



used for mailing design.



Mailing Data:



Collected from mailer through different ways, e.g.,



email.



Mail Induction Planning:



No advance preparation or planning for the induc-



tion of the mailing.


Competitive
Mailing Plan Development:


Criteria:
Created based on customer requirement on an ad-



hoc basis.



Customer requirements are collected through 



multiple ways, e.g., web, phone.



Mailing Design Development:



Database in place to store the historical template 



or design product of the customer to save the 



effort for mailing design.



Mailing Data:



Data from mailer are merged into mailing with 



standard tools pre-defined.



Store mailing details so they can be leveraged if the



requirements are similar or the same for future 



mailings.


Market Leading
Mailing Plan Development:


Criteria:
Historical data is used for forecasting the large 



mailing in advance.



Requirement confirmation is taken place proactively 



to make sure requirement are fully understood.



Mailing Design Development:



Suggestion are given to customer with personalized 



design feature as a value add service.



Mailing Data:



Data integration between postal and large mailer 



smoothes the process or mailing creation.



Mail Induction Planning:



Induction is planned in advance so that some mailing 



does not have to go through the acceptance stage, 



e.g., determine point of induction and how mail 



should be packaged for induction.
















TABLE 29





Mail Preparation
















Description:
This capability area focuses on preparing the mailing 



for induction. All processes that must be executed



prior to induction to allow mail to travel from origin



to destination including address verification, address



application, postage application and mail presortation.


Basic Criteria:
Mailing List Generation:



Based on the customer requirement, e.g., demographic 



or geographic type information.



Level of Pre-sorting:



No pre-sorting is performed.



No verification for the address list.



Label Design:



Basic label options are provided to customer as 



choices.



Postage Options:



Postal standard postage are provided as the only



option.


Competitive
Mailing List Generation:


Criteria:
Multiple queries can be performed depending 



on the type of mailing list.



Data formatting can be performed based on the 



customer requirement.



Level of Pre-sorting:



Presortation list is created based on the point of 



induction and level of presort required.



Label Design:



Labels are designed based on the customized 



requirements from customer.



Postage Options:



Some types of postage will allow for a flexible 



design that might be specific to the mailer.


Market Leading
Mailing List Generation:


Criteria:
Personalized customer data can be retrieved 



from postal database as a value added



service provide to large mailer.



Detailed verification are performed on the



address list, e.g., post code, country, city, 



street name, street number, apartment/unit/



suite number and potentially occupant name.



Level of Pre-sorting:



Mailer are encouraged to do the presortation



by themselves and pay less.
















TABLE 30





Acceptance and Induction
















Description:
The Acceptance capability area includes all processes 



that involve taking possession of the mail for subse-



quent processing. It also includes the transfer of



electronic mailing data before the mailing is actually 



physically handed over to the post. The Induction



capability area focuses on those processes that are



executed when the mail is physically handed over to 



the post. Revenue protection is a key process within



this capability where large volume mailings are 



verified to ensure proper payment.


Basic Criteria:
Mailer Communications:



No communication between acceptance units and 



large mailers until mailings arrive.



Mail Collection Services:



Only available in collection boxes and retails office; 



there is no differentiate service for large mailers.



Revenue Verification:



No process to change degree of audit from customer 



to customer.



The cost associated with recovering outstanding 



revenue does not justify collecting the outstanding 



accounts.



Payment Receipt:



Payment parameters with customers are not enforced.


Competitive
Mailer Communications:


Criteria:
Large mailer receiving includes some level of sched-



uling and pre-advice.



Mail Collection Services:



Large mailer acceptance units are set up especially 



for them and large mailer are encourage to use those 



units for more convenient and tailored service.



Revenue Verification:



Revenue audit process varies from customer to 



customer depending on historical information that is 



not stored and analyzed.



Payment Receipt:



Organization has limited ability to pursue clients 



with outstanding accounts.


Market Leading
Mailer Communications:


Criteria:
Large mailer receiving system used to schedule 



mailers and collect pre-advice data about their 



mailings.



Mail Collection Services:



Maximum accessibility (i.e. - collection boxes, 



retail offices, large mailer acceptance units, etc.).



Revenue Verification:



Optimal volume collected in each collection 



instance and at each acceptance unit.



Revenue audit process systemically modified 



and expedited depending on customer information.



Minimize lost revenue by verifying high risk mail 



and auditing a reasonable percentage of general mail.



Payment Receipt:



The organization has an integrated payment process 



with tier 1 clients and the other clients are managed



on a tight payment schedule.



Mail Volume:



Minimum volatility associated with inefficient 



processes and poorly controlled entry timing



of verified mail into the supply chain.



Optimize entry of verified mail to sort operations 



by minimizing variances in planned volume 



arrival profiles (VAP).



Minimum volatility in mail consolidation levels to 



expedite downstream sort operations.
















TABLE 31





Mail Sorting
















Description:
This capability area involves manual or mechanical 



separation of items according to a particular charac-



teristic or marking on the mail item. It also includes



those processes to deal with exceptions when the 



mail cannot be sorted at all. For general handling



and sorting processes refer to the Transportation 



platform - Handling and Sorting


Basic Criteria:
Issue Resolution:



Operators do not have the ability to fix sortation 



issues. They are only able to apply temporary 



fixes to the problems.



Pre-sorting Discounts:



No preferential policy in place for pre-sorted mail.



Address Verification:



Receiver's address is manually identified and sorted.



Sortation Method:



Sortation is done using static sort plans by product 



type based on the destination address.



Highly skilled workers perform sortation, with deep 



skills in address recognition.



Sortation is mostly manual with very little to no 



automation.



Cause of Missorts:



The number of missorts is high and could be 



prevented by improvements in upstream



processes.


Competitive
Issue Resolution:


Criteria:
Operators have limited ability to fix sortation issues.



Operators have the visibility to mail inflow and they 



intermittently plan production schedules.



Pre-sorting Discounts:



Commissions are given to those presorted mails to 



improve the percentage of mail properly prepared.



Address Verification:



Advanced technology is used to scan and identify 



the receiver's address automatically.



Sortation Method:



Manual sortation is still executed based on static sort



plans but automated sortation is more dynamic and 



not necessarily by product or based on the destination



address. Although sorting based on the destination 



address is still the most prevalent method.



Sortation is automated for most products but there is



still a large amount of manual sorting done.



Cause of Missorts:



Missorts are mostly attributed to errors made by the 



automated readers or a customer's failure to follow 



addressing guidelines.


Market Leading
Issue Resolution:


Criteria:
Operators are continually viewing demand and adjust 



the production schedules to maximize facility produc-



tivity.



Operators are able to address mail sortation issues by 



analyzing root causes rather than implementing tem-



porary fixes.



Address Verification:



Maximize the quality and accuracy of the sorting 



process by correctly and quickly identifying the



receiver's address and referencing up-to-date 



address information.



Sortation Method:



Sortation is executed dynamically based on daily 



volumes using criteria other than only the



destination address.



Sortation is fully automated with manual processes 



in place to handle exceptions.



Upstream processes are streamlined with sortation 



processes to minimize errors in product classifica-



tion and assignment to sort plans.



Cause of Missorts:



Missorts are mostly attributed to errors made by 



the automated readers or a customer's failure to 



follow addressing guidelines.
















TABLE 32





Mail Management
















Description:
This capability area includes process groups that 



involve managing the mail for a customer usually



after the mail has been inducted into the mail



operations pipeline. These processes are typically 



value-added services that a post may offer to its



customers like scanning mail for hazardous



materials and managing their mailroom.


Basic Criteria:
Response Mail Handling:



Services are provided to collected the response 



mail from the customer on behalf of the mailer.



Redirecting Mail:



Redirect according to redirection requirement, 



e.g., change of address.



Holding Mail:



Mail is held only when the mail cannot be 



delivered. No hold mail service before the 



mail is physically delivered.



Hazardous Mail Handling:



Screen mail for hazardous substances, facilities 



are provided for scanning mail and information



are store, e.g., how many pieces where scanned 



and how many were hazardous.


Competitive
Response Mail Handling:


Criteria:
Detail plan and process are in place to manage 



the response mail, e.g., plan induction, build



sortation plan, etc.



Redirecting Mail:



Database is updated after mail is redirected by 



overwriting the existing address with the new,



redirected address.



Holding Mail:



Provide holding mail as a kind of service according 



to client requirements, e.g., duration of hold, where



to be held, occupant name, etc.



Mail Room Services:



Provided for interoffice, intraoffice mail transfer, 



including pickup, sorting, distribution, etc.


Market Leading
Response Mail Handling:


Criteria:
Post processing service is provided, e.g., open, read, 



analysis, store data from the response mail. Response 



mail data is distributed according to agreed on 



channels.



Redirecting Mail:



Sorting and updating the address of redirected mail 



is an entirely automated process, and does not



significantly affect the delivery date.



Holding Mail:



Address information, induction plan and sortation 



plan are all integration according to the requirement 



for holding mail.



Archiving Mail:



Detail process and advance tools are used for mail 



archive according to client requirement. Retrieve



mail at the customer's request.



Undeliverable Mail Handling:



Return mail according to the specific requirement of 



the mailer, either return the physical mail or a list of



addresses that failed to be delivered.









The following Tables 33-44 provide an explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the transportation platform 114.







TABLE 33





Dispatch
















Description:
The capability covers load dispatching to propelled 



capacities (PUD truck, line haul, aircraft, train) or 



for consolidation to loading devices.


Basic Criteria:
Allocation:



Dispatch of pieces to capacities is performed manually



based on a static paper based allocation scheme.



There is no upstream and upfront information on dis-



patching volumes.



All paperwork is printed manually.



Daily load is optimized ad-hoc on dispatcher's experi-



ence.



No pre-departure check of shipments loaded is per-



formed.



Incident Management:



Incidents in transport operations are managed manually.



Dealing with incidents the dispatcher communicates 



over phone or radio equipment.


Competitive
Allocation:


Criteria:
Dispatcher is supported by a tool offering basic alloca- 



tion mechanisms, e.g., based on ZIP code.



Regular load can be allocated automatically and associ-



ated paperwork is printed automatically.



The dispatcher is supported by basic KPI overviews to 



re-allocate load efficiently.



Timeliness of dispatches is continuously improved by 



coordination of sort and transportation planning and



proper mode assignment.



Ad-hoc requests during the day are allocated manually.



Incident Management:



Electronic communication with remote employees is 



possible over wide-area (at least mono-directional) 



hand-held Device.


Market Leading
Allocation:


Criteria:
Sophisticated dispatch tool with advanced multi-



criterion allocation mechanisms is in place.



Automated dispatch systems integrated into other 



operating, administrative and financial systems 



(TMS/WMS).



The dispatch tool suggests optimization opportunities. 



The allocation scheme is optimized on statistical 



measures.



Operators ensure timeliness of dispatches by investi-



gation and coordination of sort and transportation



planning and proper mode assignment.



In Road Transport even ad-hoc pick-ups during the



day are sent directly to couriers on tour.



Allocation schemes allow for joint capacities of 



different divisions (Express, Freight).



Incident Management:



Preventive mechanisms and warnings support the 



dispatcher.



Electronic communication with remote employees 



using bi-directional hand-held device communica-



tion.



Documents printed by hand-held device and status



information is immediately exchanged with central



system when recorded.
















TABLE 34





Pick-up and Receive
















Description:
The capability covers all variations of road or railcar 



pick-up/reception/input of shipments, including all



pick-up activities starting with vehicle departure from 



and ending with re-arrival at the terminal/hub gate, or



direct receipt at facility for further processing.


Basic Criteria:
Flexibility:



Only pick-up tours are supported.



Data and Document Exchange:



All work is performed based on paperwork handed 



over to the courier/driver.



The courier provides empty paper forms to shipper. 



These forms are filled out manually by the shipper.



Piece Tagging:



Piece tagging will be performed during unload of 



the pick-up truck in the terminal.



Navigation:



The courier/driver drives by experience and map.



Feature support:



Only pick-up is supported.



Status Recording:



Shipment status information is recorded manually 



or by scanning of documents during trip return.


Competitive
Flexibility:


Criteria:
Mixed pick-up and delivery tours are supported.



Data and Document Exchange:



Customer sends order files electronically using 



customer automation system.



Additional paperwork like dangerous goods 



declaration or customs documents still managed 



manually.



Piece Tagging:



Pieces are already tagged by the shipper or 



preliminary label concept is used.



Navigation:



The courier drives by experience and map.



Feature support:



Remote pick-ups are supported (requirement 



for systems integration).



Loading device exchange is managed manually.



Status Recording:



Shipment status information is recorded manually 



or by scanning of documents during trip return.


Market Leading
Flexibility:


Criteria:
Pick-ups and delivery from multiple domains 



(freight, express) are supported.



Data and Document Exchange:



Customer sends order files electronically using 



customer automation system, web site or full



ERP integration.



Additional paperwork is communicated electronically 



and only for legal reasons paper copies are handed



over to courier.



Piece Tagging:



Pieces are already labeled by the shipper or preliminary 



labels are used in order to give the customer a unique



reference on piece level.



Navigation:



The hand-held Device supports navigation and leads 



the courier with optimal efficiency to the pick-up



locations.



Feature support:



Sophisticated product features are supported using a 



mobile device: proper planning of additional load



times, pick-up feasibility, loading help management,



trailer management and courier meet pick-up/delivery;



real-time with updates and re-routes



Status Recording:



Tour feasibility and current status is confirmed using a 



hand-held device.



Wireless communication with central system during 



operations is enabled.


Description:
The capability covers all variations of road or railcar 



pick-up/reception/input of shipments, including all 



pick-up activities starting with vehicle departure from



and ending with re-arrival at the terminal/hub gate, or



direct receipt at facility for further processing.


Basic Criteria:
Trip Results:



Heavy post tour registration process in order to record 



trip results.



Payment Reconciliation:



Payment reconciliation is done manually based on 



paperwork.



Performance Management:



No guidelines are in place for courier/driver 



performance.



Subcontractors and staff are debriefed only in case of 



bigger problems.



Unplanned Activities:



All incidents and same day ad-hoc pick-ups are 



managed by phone or radio equipment.


Competitive
Trip Results:


Criteria:
Pick-ups are registered by pick-up un-load registration.



Payment Reconciliation:



Payment reconciliation is supported by a system.



Performance Management:



Subcontractors and staff are debriefed based on 



manager experience.



Briefing guidelines are in place.



Unplanned Activities:



All incidents are managed by phone or radio.



Ad-hoc pick-ups during the day can be received over 



hand-held Device.



Paper receipts are still filled out manual.


Market Leading
Trip Results:


Criteria:
Pick-up information from hand-held device loaded. No 



further registration in post trip necessary.



Payment Reconciliation:



Quick payment reconciliation by using hand-held 



device information.



Performance Management:



Operational delivery performance is determined auto-



matically and service level agreement checks of sub-



contractors are performed as an input for the debrief.



Unplanned Activities:



Incidents are managed by hand-held device and phone.



Ad-hoc pick-ups during the day can be received over 



hand-held Device.



Hand-held device is used to print receipts.
















TABLE 35





Terminal Handling and Sorting-Handling
















Description:
The capability covers all activities from vehicle 



reception at the gate, unloading, sorting, for-



warding and loading to releasing the vehicle



from the gate.


Basic Criteria:
Terminal Layout:



Terminal layout is taken as given.



No systematic alignment between network and 



local capacities.



Measurement:



Weight and dimensions are recorded manually 



and only sporadically or for non-conveyable 



traffic.



Dock Inventory:



Paper based dock inventory is performed.



Goods Management:



All leftover shipments remain in the bays after 



departure.



Transit Documentation:



Transit documents are just handed over manually 



by terminal staff.


Competitive
Terminal Layout:


Criteria:
Existing terminal layouts are individually optimized.



Measurement:



Weight and dimensions for conveyable traffic 



automatically recorded.



Dock Inventory:



Scan based dock inventory is performed.



Goods Management:



All leftover shipments are recorded with a leftover 



reason and checked in.



Dedicated secured places for dangerous or valuable 



goods.



Discrepancy reports are regularly run for quality 



improvements.



Transit Documentation:



Transit documents are managed manually.



Additional checks are performed by line haul 



management that all transit documents are 



properly forwarded.


Market Leading
Terminal Layout:


Criteria:
Terminal layouts of all terminals are efficiently 



designed in order to ensure quick handling.



Systematic and technology supported alignment 



between network and local capacities to ensure



minimum goods movements.



Measurement:



Weight and dimensions for conveyable traffic 



automatically recorded and updated in records.



Dock Inventory:



Scan based dock inventory is performed.



Miss-routings are monitored and reasons diminished.



Goods Management:



All leftover shipments are recorded with leftover 



reason and checked in.



Dedicated secured places for dangerous or valuable 



goods.



Special requirements goods are controlled (e.g., reefer 



cargo temperature).



Transit Documentation:



Transit document content is sent electronically to the 



dedicated receivers.



Paper based transit documents are stuck to pieces 



whenever possible.



Additional paperwork (e.g., dangerous goods) is



properly and efficiently sorted and forwarded to 



line haul driver.
















TABLE 36





Terminal Handling and Sorting-Unloading/Loading
















Description:
The capability covers all activities from vehicle recep- 



tion at the gate, unloading, sorting, forwarding and



loading to releasing the vehicle from the gate.


Basic Criteria:
Unloading/Loading a Vehicle:



Manual loading processes including generation of



shipping documents.



Loading helps getting short sometimes; qualification



for certain devices can be an efficiency limiting factor



(e.g., fork-lift or harbor crane).



Manual carton/pallet counts as they are loaded onto 



shipping vehicle.



100% QA checking of all shipments.



Operational safety guidelines are available, but rarely



supervised in a borderline way.



Hardly any terminal worker has a certification to handle 



special requirements goods (e.g., dango, gas, fluids, 



secured).



No electronic loading confirmation in place.



No communication to shipment consignee.


Competitive
Unloading/Loading a Vehicle:


Criteria:
RF dispatched loading of staged product, based on 



priority in task queue.



System suggested load sequence - based on product 



requirements and location min/max.



Loading helps are sufficiently available and accessible 



for every terminal worker. A sufficient number of 



loading personnel is qualified to use special loading 



devices.



System generated shipping documents.



Exception based QA checks; random check of loaded 



orders.



Operational safety guidelines are in place and are 



regularly checked and updated.



Shift supervisors and team leads have specific 



complementary special requirements goods



certifications (e.g., dango, gas, fluids, secured).



BOL and/or packlist is faxed to consignee after 



shipment is dispatched.


Market Leading
Unloading/Loading a Vehicle:


Criteria:
Load sequence is dictated by the customer order.



Load confirmation using RF in place.



Direct computer links to pickers via RF.



Productivity standards are measured by assignment.



Loading helps are considered being an efficiency 



driver. Devices are sufficiently available in top



conditions and a high number of terminal workers is



qualified to operate special devices (fork-lifts, 



cranes, etc.).



Bar coded container identification outlining pallet 



contents for mixed SKU pallets.



System directed random checks using SPC.



Operations safety is a key value. All terminal workers 



are equipped with specific safety apparel.



A high number of terminal workers have complemen-



tary special requirements goods certifications (e.g., 



dango, gas, fluids, secured).



ASN (advance shipping notice) delivered to consignee



as shipment is released.
















TABLE 37





Terminal Handling and Sorting-Sorting
















Description:
The capability covers all activities from vehicle reception 



at the gate, unloading, sorting, forwarding and loading to 



releasing the vehicle from the gate. For further mail 



specific sorting processes refer to the Mail 



Operations platform—Mail Sorting.


Basic Criteria:
Sorting:



Manual sorting only.



Mail focus:



Operators/loading personnel do not have the ability to 



fix sorting issues. They are only able to apply 



temporary fixes to the problems. 



No preferential policy in place for pre-sorted



mail. 



Receiver's address is manually identified and



sorted. 



There is only limited automation in the



process. 



Classification of mail is done by visual inspection.



Decoding of sort criteria is based on human 



knowledge of postal code data.



Manual processes in place to handle missorts 



that are labor intensive; missorts are high and are 



largely attributed to human errors.



Mail is cleared by operators only; when they 



see the operational fit; usually based on volumes.


Competitive
Sorting:


Criteria:
Use of sorting machines/belts for standard pieces 



(size within range) or only for specific pieces.



Mail focus:



Operators/loading personnel have limited ability to fix 



sorting issues.



Operators have the visibility to mail inflow and they 



intermittently adapt production schedules.



Commissions are given to those presorted mails to 



improve the percentage of mail properly prepared.



Sorting is automated for most products but there is still 



a large amount of manual sorting done.



Advanced technology is used to scan and identify the 



receiver's address automatically.



Addresses are validated using data that has been 



downloaded daily.



Some level of automation is involved in classifying 



the mail by scanning identification labels.



Missorts are mostly attributed to errors made by the 



automated readers or a customer's failure to follow 



addressing guidelines.



Processes to handle missorts are manual.



Clearing mail is still a manual process but has been 



partially planned out based on the production schedule.



Highly skilled workers are responsible for clearing the 



mail.


Market Leading
Sorting:


Criteria:
Using sorting machines/belts for standard pieces 



allowing for direct load from them.



Mail focus:



Sorting machines support wide range of pieces.



Container/Ship lading:



Terminal automation and marshalling is performed.



Operators/loading personnel are continually viewing 



demand and adjust the production schedules to 



maximize facility productivity.



Operators are able to address mail sorting issues by 



analyzing root causes rather than implementing 



temporary fixes.



Piece-embedded sort criteria (e.g., data glyphs) 



maximize quality and accuracy of the sorting process 



referencing up-to-date address information.



Sorting process speed is maximized to achieve 



improved customer service while minimizing the 



costs associated with sorting the mail.



Volume of missorts is small; most missorts are 



due to a customer's failure to follow addressing 



guidelines.



Mail is cleared only when necessary and depends 



on the separation volumes and the production schedule; 



clearance is performed fully automated in most cases.
















TABLE 38





Terminal Handling and Sorting-Storage
















Description:
The capability covers all activities from vehicle 



reception at the gate, unloading, sorting, forwarding 



and loading to releasing the vehicle from the gate. 



Related to storage activities along the shipments' flow 



through the value chain, differentiating from 



Warehousing.


Basic Criteria:
Storage Security:



Non-secured storage area is in place. No check-in/



check-out is performed.



Storage Inventory and Utilization:



Only basic storage guidelines are in place.



Storage Locations and Conditions:



Kind of goods not taken into account for storage 



location or conditions.



Inventory Facilities:



Physical storage is limited to stacking.



For more storage related input see Warehousing.


Competitive
Storage Security:


Criteria:
Secured and non-secured storage areas are in place. 



Pieces are checked-in/checked-out using scanning.



Storage Inventory and Utilization:



Manual storage inventory performed regularly.



Storage Locations and Conditions:



Dedicated storage areas for specific types of goods.



Inventory Facilities:



Use of shelving, case flow rack, etc., integrated into 



rack system. High density storage options including 



push-back, flow-thru, and double deep selective rack.


Market Leading
Storage Security:


Criteria:
System control to monitor and manage storage retention.



Storage Inventory and Utilization:



Storage bay utilization is monitored and storage layout 



adapted to goods needs. Storage is organized based on 



pieces priorities.



Storage Locations and Conditions:



Proper storage conditions are ensured for dedicated 



goods (temperature, humidity).



Inventory Facilities:



Use of high density racking with integrated pick tunnel, 



etc.
















TABLE 39





Sea Operations


















Description:
The capability covers all transportation




activities specific to sea cargo




operations (excluding pick-up and delivery).



Basic Criteria:
Reserved.



Competitive
Reserved.



Criteria:




Market Leading
Reserved.



Criteria:

















TABLE 40





Line Haul
















Description:
The capability covers shipping activities specific to road 



transportation between terminals or hubs (excluding 



pick-up and delivery).


Basic Criteria:
Shipment Location and Identification:



Shipments on line hauls can be identified by 



accompanying paperwork only.



Sealing:



Sealing is managed manually.



Briefing and Feedback:



Subcontractors and staff are debriefed only in case of 



bigger problems.



Line Haul Status:



Line haul status is communicated over phone or radio 



equipment.



Rare communication with drivers for their status in-transit.



Proof of delivery not required or includes manual 



signature.



Shipment Allocation and Overload Management:



Shipments are routed to line hauls and are loaded. 



Overloads are detected when they appear.



Manual follow-up on incidents.


Competitive
Shipment location and identification:


Criteria:
Full visibility of shipments on line hauls in the systems.



Sealing:



Sealing is managed manually with limited electronic 



support (e.g., seal number can be scanned into the 



system).



Briefing and Feedback:



Subcontractors and staff are debriefed based on line 



haul manager experience. Briefing guidelines are in place.



Line Haul Status:



Line haul movement driver communicates status and 



location only in case of incidents by phone or radio 



equipment, otherwise proper line haul operation is 



assumed.



Proof of delivery included in billings or dispatch 



paperwork.



Shipment Allocation and Overload Management:



Shipments are allocated to line hauls automatically 



to a high percentage.



Some manual reallocation is required.



Significant overloads are early detected.



Load alternatives must be identified manually.


Market Leading
Shipment location and identification:


Criteria:
Full visibility of shipments on line hauls down to 



piece level as well with line hauls executed by 



third parties.



Sealing:



Electronic seal management, piece-level line haul 



arrival notification.



Briefing and Feedback:



Operational line haul performance is determined 



automatically and SLA checks of subcontractors 



are performed as an input for debriefs.



Line Haul Status:



Communication with drivers using advanced on-



board technology, with 2-way messaging capability.



Line hauls send status and location (transponder, GPS) 



information to line haul managers.



Incidents are communicated electronically.



Automated on-line update on proof of delivery.



Shipment Allocation and Overload Management:



Shipments are allocated to line hauls automatically 



using vehicle characteristics.



Overloads are early detected and followed up on.



Tool suggests alternatives (e.g., according to shipment 



priorities) before loading.
















TABLE 41





Rail Operations


















Description:
The capability covers all shipping activities




specific to railway cargo transportation




(excluding pick-up and delivery)



Basic Criteria:
Reserved.



Competitive
Reserved.



Criteria:




Market Leading
Reserved.



Criteria:

















TABLE 42





Air Operations
















Description:
The capability covers all shipping



activities specific to air freight transportation



(excluding pick-up and delivery).


Basic Criteria:
Reserved.


Competitive
Reserved.


Criteria:



Market Leading
Reserved.


Criteria:
















TABLE 43





Delivery
















Description:
The capability covers all variations of road or railcar 



delivery/output of shipments. It covers all delivery 



activities starting with vehicle departure from and 



ending with re-arrival at the terminal/hub gate.


Basic Criteria:
Flexibility:



Only delivery tours are supported.



Data and Document Exchange:



All work is performed based on paperwork handed 



over to the courier/driver during tour preparation or 



delivery.



Navigation:



The courier drives by experience and map.



Feature support:



Some additional delivery services are supported like 



proof of delivery or cash collection.



Proof of delivery and signature is paper work.



Pre-Departure Check:



No pre-departure check of shipments loaded is performed.



Status Recording:



Shipment status information is recorded manually or 



by scanning of documents.


Competitive
Flexibility:


Criteria:
Mixed pick-up and delivery tours are supported.



Data and Document Exchange:



Delivery receipts are still provided manually.



Navigation:



The courier drives by experience and map.



Feature Support:



Shipments can be delivered before a certain time limit 



(e.g., pre-10 a.m.). Loading devices are managed 



manually.



Proof of delivery and signature still on paper work.



Pre-Departure Check:



Pre-departure check of shipments loaded is performed 



random-based.



Status Recording:



Load scan is done with terminal scanner on piece level. 



Allows to record additional status information.


Market Leading
Flexibility:


Criteria:
Pick-ups and delivery from multiple domains (freight, 



express) are supported.



Data and Document Exchange:



Hand-held device is used to print receipts.



Hand-held device allows to record proof of delivery 



and signature on display.



Receipts are printed by hand-held device.



Navigation:



The hand-held device supports as well navigation 



and leads the courier with optimal efficiency to 



the delivery locations.



Feature support:



Sophisticated product features are supported by 



hand-held Device: proper planning of additional 



lead times, delivery feasibility, cash collection, 



loading helps management, trailer management and 



courier meet pick-up/delivery and in time delivery.



Pre-Departure Check:



Pre-departure check of shipments loaded is performed 



random-based controlled by system.



Status Recording:



Tour feasibility is confirmed using the hand-held Device.



Automatic piece level checks are performed, e.g., for 



customers not allowing partial deliveries.


Description:
The capability covers all variations of road or railcar 



delivery/output of shipments. It covers all delivery 



activities starting with vehicle departure from and 



ending with re-arrival at the terminal/hub gate.


Basic Criteria:
Trip Results:



Extensive post tour registration process in order to 



record trip results.



Payment Reconciliation:



Payment reconciliation is done manually based on 



paperwork.



Performance Management:



No guidelines are in place for courier performance.



Subcontractors and staff are debriefed only in case of 



bigger problems.



Unplanned Activities:



All incidents are managed by phone or radio equipment.



Management Support:



Management is not supported by systems to minimize 



resources and improve customer service.


Competitive
Trip Results:


Criteria:
Only detailed recording of reason for non-delivery 



and proof of delivery.



Payment Reconciliation:



Payment reconciliation is supported by system.



Performance Management:



Subcontractors and staff are debriefed based on



manager experience.



Briefing guidelines are in place.



Unplanned Activities:



All incidents are managed by phone or radio.



Management Support:



Management supported with limited tools, which are 



not integrated with other functions' captured data.


Market Leading
Trip Results:


Criteria:
Detailed recording of reason for non-delivery available 



from hand-held device.



Payment Reconciliation:



Quick payment reconciliation by using hand-held 



Device information.



Performance Management:



Operational delivery performance is determined 



automatically and service level checks of subcontractors 



are performed as an input for the debrief.



Unplanned Activities:



Incidents are managed by hand-held device and phone.



Management Support:



Suite of integrated management tools available to 



optimize resource usage and maximize customer service.
















TABLE 44





Delivery-Mail Delivery
















Description:
The capability covers all variations of road or railcar 



delivery/output of shipments. It covers all delivery 



activities starting with vehicle departure from and 



ending with re-arrival at the terminal/hub gate.



For mail delivery, processes start with sorting and 



sequencing mail for final (last-mile) delivery.


Basic Criteria:
Merge, Prepare, Order Mail:



Non-motorized, manual equipment is used to pick-up 



mail containers from loading dock and transport them 



to delivery staging area.



Little to no mail containers contain mail that is a pre-sorted 



to the delivery final route.



Generic process used for delivery sequencing.



Little integration with Route Management and Address 



Management systems.


Competitive
Merge, Prepare, Order Mail:


Criteria:
Motorized equipment is used to pick-up mail containers 



from loading dock and transport them to delivery staging 



area.



Some mail containers contain mail that is pre-sorted to the 



final delivery route, provided to delivery personnel at 



remote pick-up locations in delivery area proximity.



Paper-based forms of communication are used to 



communicate requirements for unaddressed admail for 



carrier's route.



Specific process for manual sequencing of delivery route.



Some integration with Route Management and Address 



Management systems.


Market Leading
Merge, Prepare, Order Mail:


Criteria:
Motorized equipment is used to pick-up mail containers 



from loading dock and transport them to delivery staging 



area.



Mail within mail containers is pre-sorted to the delivery 



final route, provided to delivery personnel at remote 



pick-up locations in delivery area proximity.



Use of mobile communication devices (i.e., PDA) are used 



to communicate requirements for unaddressed admail for 



carrier's route.



Route sequencing is automated.



Route sequencing system is integrated with Route 



Management and Address Management systems to 



optimize route sequencing.









The following Tables 45-51 provide an explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the supplemental services platform 116.







TABLE 45





Customs Management
















Description:
Management of all import/export/transit related 



collaboration with customs representation of the 



local country. Optional: Customs broker.


Basic Criteria:
Data and Document Exchange:



Customs is managed paper-based at least on one 



side, resulting in additional data capture effort. 



Documents are printed and forwarded via mail 



to customs agency.



Split duty and VAT:



Split duty and VAT, declared value manually 



calculated when needed.



Customs Clearance Procedure and Scalability:



Customs clearance procedures for specific goods or 



locations are investigated when needed.



Customs processes are designed only for low volumes.



No active management of tariffs and quota, seeking 



exemptions and NAFTA qualifications for new products.



Customs Broker:



Customs processes are managed in house.


Competitive
Data and Document Exchange:


Criteria:
Customs documentation is generated and submitted 



electronically.



Split Duty and VAT:



Split Duty and VAT, declared value are calculated 



system supported.



Repository for customs regulations available.



Access to harmonized customs tariffs structure is in use to 



forecast actual customs payments to customers to 



reduce risk.



Customs Clearance Procedure and Scalability:



Customs clearance procedures for specific goods or 



locations are in place.



Customs processes are scalable.



Use of tools to manage tariffs/quotas and accurately 



track country of origin for proper assessment of tariffs.



Customs clearance status is fully visible.



Use of Foreign Trade Zones and bonded facilities to 



clear customs nearest to point of use.



Customs Broker:



Customs management optionally handled by external 



customs broker.



Documents are forwarded manually to customs broker.


Market Leading
Data and Document Exchange:


Criteria:
High level of process and system integration with 



customs authorities.



Customs receives all manifests required for export 



electronically and as early as possible to ensure 



quick clearance.



Only legally required documents are forwarded 



paper-based.



Customs is automatically informed on import arrival.



Split Duty and VAT:



Duty and VAT split is automatically performed. Repository 



for customs regulations is managed.



Additional services like trade and customs advice are 



provided to customers.



Global Trade Management tool tracks tariffs, duties, 



and quotas, alerting when quotas are being reached.



Customs Clearance Procedure and Scalability:



Automated clearance procedures for specific goods or 



locations are in place and supported by systems.



Scalable processes.



A dedicated organization in large scale cases is foreseen 



just to deal with customs.



Customs clearance status is continuously monitored.



Customs Broker:



Customs management completely handled by external 



customs broker.



Customs brokerage fees/SLAs are thoroughly controlled.
















TABLE 46





Yard and Handling Area Management
















Description:
Management of the handling areas within the yards: apron, 



yard in front of terminals and hubs, rail car yards.


Basic Criteria:
Traffic Management:



Traffic not coordinated.



Only in-/out movement is controlled to avoid traffic 



jams in the yard and ensure security of goods.



Docking:



Fixed docks for specific movement relations.



Only incidental re-docking for delayed capacities.



Sorters sort always in the same way.



Inventory Management:



Inventory in the yard is not tracked at all.



In case inventory is missing, search activities start.


Competitive
Traffic Management:


Criteria:
Movement lanes and vehicle flows are defined.



Management of waiting queues.



Docking:



Docks can be rescheduled to increase efficiency of 



terminal.



No loading/unloading time slots defined and managed.



Docks are freed when un-/loading is finished and then 



used by next capacity.



Inventory Management:



Inventory in the yard is regularly tracked and followed 



up on, some use of tracking devices.


Market Leading
Traffic Management:


Criteria:
Traffic control (e.g., traffic lights) and planned 



slotting on the yard.



Waiting queues are taking into account for delay 



determination of shipments.



Task generation and assignment optimization, rules 



engine that automates business functions and an 



alerting mechanism to flag critical yard activities.



Docking:



Dynamic docking plan with assigned time slots for 



loading/unloading.



Sorters in Handling configured accordingly.



Incentives for movement operators to keep the time 



slot.



Management of delays for optimal terminal utilization.



Inventory Management:



Inventory in the yard is continuously tracked and 



followed up on.



RFID or radio senders/transponders used for real 



time tracking of loading devices and trailers.
















TABLE 47





Track and Trace
















Description:
This capability area involves recording and tracing 



information, tracking goods, mail, containers, 



vehicles, etc., through the network. Key information 



is stored throughout the network and aggregated 



to the appropriate level depending on the end user.


Basic Criteria:
Status Recording:



Shipment status information is recorded manually or 



by scanning documents.



Simple description of the event; description is not 



self-explanatory (e.g., location/airport not provided 



for events outside country).



Check Points:



Only basic check points are available.



Organizational Range:



Track and Trace is available only nationally and only 



on shipment Id level.



Little or no visibility to international in-transit shipments. 



Phone calls to carriers required for status.



Track and Trace Availability:



Track and Trace information is available for customers 



only through customer service interaction on customer 



request.


Competitive
Status Recording:


Criteria:
Scanning information is recorded in addition to the 



manual status information.



Load scan is done with terminal scanner on piece level. 



Allows to record additional status information.



Better look, more descriptive event information 



are provided to (internally and to partners/customers).



Check Points:



Advanced check point information can be provided.



Visibility is available throughout the whole 



transportation processes, including departure, 



in transit, and destination.



Organizational Range:



Track and trace harmonized regionally with partners.



In-transit info is pooled into one tracking system, hosted 



either internally or by one of the broker/carriers.



Track and Trace Availability:



Customers can look-up shipment status on the internet 



on shipment level.



Customer may use Pro-Active Monitoring feature.


Market Leading
Status Recording:


Criteria:
Manual or automated (RFID) scanning are recorded 



additionally to manual status information.



Real time information is available through couriers 



using hand-held Devices.



Check Points:



Selection of checkpoints can be tailored to freight types.



Full Visibility is available throughout the whole 



transportation processes, including departure, in 



transit, and destination.



Organizational Range:



Track and Trace harmonized over global supply chain.



Single global tracking system hosts up-to-date info for 



all in-transit, domestic and international shipments.



SC customers have controlled access to the system.



Track and Trace Availability:



Track and Trace information is available on external 



order number on the internet on piece level, real time.



Pro-Active Monitoring feature available with ERP



integration. Proactive event management alerts are 



triggered by pending exceptions.



Current status and history of all the tracking events 



are available.
















TABLE 48





Transport Management
















Description:
The capability describes the management of complex 



transportation chains (e.g., inter modal) and control 



over documents flows. Service provider gets a service 



fee for doing coordination and administrative tasks 



on behalf of the customer. This service can be 



performed by any transportation provider, not only 



by classic 3/4PLs.


Basic Criteria:
Carrier/Partner Portfolio:



 Carrier/partner portfolio is historically grown and 



 not consistently managed.



 See Supplier Management capability for further 



 details.



Document Management:



 Invoice consolidation is not possible; it is mainly a 



 paper-based manual process.



 Document exchange with customers or partners is a 



 manual process.



 For document archiving see Information/Data 



 Management capability.



Financial Management:



 Payments and transactions managed manually.


Competitive
Carrier/Partner Portfolio:


Criteria:
 Carrier/partner portfolio is regularly categorized and 



 evaluated based on SWOT analysis.



 Network plans and schedules are fully aligned with 



 the external partners.



 See Supplier Management capability for further 



 details.



Document Management:



 Basic document management system capabilities are 



 in place.



 For document archiving see Information/Data 



 Management capability.



Financial Management:



 The most common transactions can be managed 



 electronically with the bigger partners.


Market Leading 
Carrier/Partner Portfolio:


Criteria:
 Carrier/partner portfolio continuously categorized 



 and evaluated based on SWOT analysis or strategic 



 sourcing.



 Carriers and partners are individually informed 



 about forecast of volumes.



 See Supplier Management Element for further 



 details.



Document Management:



 Advanced document management capabilities. 



 Electronic consolidation and forwarding of



 suppliers invoices to customers.



 For document archive see Data Management



 capability.



Financial Management:



 Full electronic payment and transaction 



 management (e.g., transactions according to Bill 



 of Lading).
















TABLE 49





Payment Handling
















Description:
This capability involves various payment collection 



options (EXW, DDU/DDP, cash-on-delivery, 



third-party payment collection) for shipments, 



excluding mail postage counter payment collection.


Basic Criteria:
Payment Types:



 Cash and cheque against service provider are valid 



 payment options.



Supported Payment Features:



 Payment collection for freight pre-paid (DDP/DDU), 



 collect (EXW) and COD for the goods is possible.



Documentation:



 The process is completely paper-based. Payments 



 are documented on pick-up delivery receipts.



Payment Reconciliation:



 Reconciliation of payments is done against receipts.



Processes and Systems Support:



 Payments and transactions managed manually.



 Restrictions in rate calculation of basic or additional 



 services. Services are rated stand-alone having no 



 dependencies with other services.



 For international shipments manual split of duty and 



 VAT for freight is performed.


Competitive
Payment Types:


Criteria:
 Cash, cheque, and cheque against customer are valid 



 payment options.



 Redirection to account payment is possible.



Supported Payment Features:



 Additionally to payment collection for freight pre-paid 



 (DDU/DDP), collect (EXW) and COD for the goods 



 payments can be collected as well on behalf of any 



 third party (EXW) (e.g., partner).



Documentation:



 Payment confirmation can be printed using hand-held 



 Device.



Payment Reconciliation:



 Payment discrepancies are balanced using the software. 



 Outstanding payments can be charged to pick-up and 



 delivery service provider/courier.



Processes and Systems Support:



 The most common transactions can be managed 



 electronically.



 Outsourced invoice printing and distribution has been 



 considered.



 Customization of invoicing facilities is provided for 



 key customer.



 No restrictions in rate calculation of basic or 



 additional services.



 Invoicing is fully flexible to any pricing model.



 For international shipments automated split of duty 



 and VAT for freight is performed.


Market Leading
Payment Types:


Criteria:
 Cash, cheque, cheque against customer and credit 



 cards are supported for payment. Credit card checks 



 can be performed wireless.



 Automatic account validation and charge of payments 



 against account is possible via hand-held Device.



Supported Payment Features:



 Same as “competitive”.



Documentation:



 Payment process during pick-up and delivery is 



 completely done using hand-held Devices. 



 Payment confirmation can be printed using a hand-



 held Device.



Payment Reconciliation:



 Payment discrepancies are balanced using the 



 software.



 Follow-up mechanisms are in place.



 Outstanding payments can be charged to pick-up and 



 delivery service provider/courier.



 Payment reconciliation is done based on hand-held 



 device information downloaded.



Processes and Systems Support:



 Full electronic payment and transaction management 



 (e.g., transactions according to Bill of Lading).



 Complex rating rules are supported like multi-



 dimensional tariffs, time bands and event



 segmentation.
















TABLE 50





Special Requirements Management
















Description:
Management of freight and mail, which require 



special treatment (e.g., temperature control, oversize, 



dangerous).


Basic Criteria:
Operational Excellence:



 Goods with special requirements only transported 



 occasionally.



 Manual, effort-intensive and inefficient procedures.



Support Paperwork:



 Support paperwork managed manually.



Special Vehicle and Driver Requirements:



 Special vehicle and driver requirements are checked 



 manually.


Competitive
Operational Excellence:


Criteria:
 Easy to understand guidelines for employees to fulfill 



 requirements of goods with special requirements.



 Staff trained on the different kinds of goods with



 special requirements and how to handle them 



 efficiently and correctly.



 Cleaning and waste management detailed procedures 



 defined and controlled.



Support Paperwork:



 Support paperwork managed manually. Quality 



 checklists in place.



 Legal requirements are managed in a look-up 



 repository.



Special Vehicle and Driver Requirements:



 Special vehicle and driver requirements are checked 



 automatically.



 Temperature control in place when needed.



 Dangerous goods check performed manually to avoid 



 illegal combination of goods.


Market Leading
Operational Excellence:


Criteria:
 All legal and transportation requirements and 



 constraints are automatically checked by the system.



 Warnings are generated to ensure proper handling of 



 goods by staff.



 Scalability of processes ensured, especial when large 



 volumes or quantities have to be transported.



Support Paperwork:



 System requires check of support paperwork at 



 dedicated checkpoints.



Special Vehicle and Driver Requirements:



 Dangerous goods check performed automatically to 



 avoid illegal combination of goods.



 Automatic detection of hazardous goods/shipments to 



 specified addresses (e.g., parliament), as part of 



 sorting capability.
















TABLE 51





Exceptions Management
















Description:
This capability includes the generic activities that are 



required to manage exceptions. Exceptions to the 



usual way of operations can range from misrouted 



shipments to facility outages due to critical incidents 



or disasters and need to be dealt with accordingly. 



A common understanding is required of how events 



will be captured and handled.


Basic Criteria:
Process Definition:



 Exceptions (rejected, damaged, etc.) are managed 



 when they appear.



 Exceptions handling procedures are documented and 



 staff trained.



Exception Identification:



 Customer service must investigate with operations 



 if there is an exception and which type in case of a 



 customer complaint.



 See capability Customer Interaction (Claims and 



 Complaints).



Shipment Modification:



 No control over shipment modifications. Only done 



 by staff when needed.


Competitive
Process Definition:


Criteria:
 Exceptions process definitions are managed and 



 documentation regularly updated (best practices) and 



 communicated.



Exception Identification:



 Exceptions can be seen by customer service within 



 shipment record.



 Statistics about exception occurrences and analysis 



 of root causes are regularly performed.



Shipment Modification:



 Shipment modification rules are documented and 



 known but not checked by system.



 Only a knowledgeable responsible can perform 



 shipment modification.


Market Leading
Process Definition:


Criteria:
 Exception handling strategy is developed and in place.



 Exception process definitions are continuously 



 improved, documented and trained.



 System support for exception management 



 continuously evaluated for extensions.



Exception Identification:



 Exceptions are automatically monitored and 



 related processes automatically initiated.



 Detailed processes are defined and implemented for 



 all generic processes like rejected, misrouted, 



 damaged, incomplete shipments.



Shipment Modification:



 Shipment modification rules are automatically 



 checked by the system.









The following Tables 52-57 provide an explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the retail operations platform 118.







TABLE 52





Store Operations
















Description:
This capability area includes all activities related 



to running the brick-and-mortar store from an 



administrative perspective.


Basic Criteria:
Staff Management:



 No systemized performance evaluation of store 



 operating personnel.



Staff Training:



 Training of store personnel done on an as needed 



 basis per employee.



 Training performed by the local staff.



 Select staff members are trained to perform special 



 services, e.g., handle passport requests.



Cash Management:



 Nightly procedures for balancing the store's cash 



 balance are created by each store.


Competitive
Staff Management:


Criteria:
 Performance of store operating personnel is measured 



 in terms of services provided in total and varies 



 considerably between individuals.



Staff Training:



 Training of store personnel done on a regional or 



 organization level basis. All new personnel attend 



 the same training session.



 All staff members are trained to perform the entire 



 range of services offered at the store.



Cash Management:



 Nightly procedures for balancing the store's cash 



 balance are created centrally.


Market Leading 
Staff Management:


Criteria:
 Pro-active store operating personnel assessment by 



 key performance indicator using performance 



 analysis software.



Staff Training:



 POS and other store data is taken into account when 



 designing the content for the store staff training 



 program. Updates to the ongoing training curriculum 



 are based on the data collected at stores.



Cash Management:



 Cash Management procedures are audited by a 



 central team at each store.
















TABLE 53





Category Planning and Management
















Description:
This capability area includes all activities related to 



planning and managing the assortment of goods and 



services offered through the post's retail activities, 



including their assignment to and within stores.


Basic Criteria:
Product Trend Tracking:



 Product attributes not tracked/maintained.



Category Planning Integration:



 Lack of integration between category planning and 



 other function, e.g., customer insight, pricing, 



 forecasting.



Item Management:



 Items are maintained in system manually, often 



 duplicate keying, paper based and redundant set 



 up across channels.



Historical Sales Analysis:



 Limited historical measures (e.g., sales, margin) 



 used to analyze historic performance of the 



 assortment.



Category Development:



 Assortment plans developed by buyers and 



 communicated around the business at key stages .



Store Format:



 Generic store format not customized to local market. 



 One assortment for the entire chain.


Competitive
Product Trend Tracking:


Criteria:
 Track key attribute trends to make broad decisions.



Category Planning Integration:



 Manual integration between category planning and 



 other functions.



Item Management:



 Centralized item maintain function within the 



 organization.



Historical Sales Analysis:



 Detailed analysis and measures available when 



 choosing assortment items.



Category Development:



 Assortment plans developed primarily by buyers and 



 merchandisers but with a clearly defined RACI to 



 describe input required from finance, stores, 



 marketing, supply chain and logistics.



Store Format:



 Store offerings are standardized on regional basis. 



 Basic store groups used such as geography, climate.



 Some stores offer tailored products based on 



 customer's special requirements.


Market Leading
Product Trend Tracking:


Criteria:
 Multiple views to attribute mix available and used 



 extensively in planning the assortment.



 Category Planning Integration:



 Seamless integration between category planning and 



 other functions.



 Data synchronization with suppliers.



Item Management:



 Centralized management of item data across 



 channels/lines of business.



 Items are maintained electronically with global 



 standards.



Historical Sales Analysis:



 Use of leading measures in choosing the assortment, 



 e.g., “True” SKU and item level profitability, trickle 



 sales, EVA.



Category Development:



 Assortment plans created collaboratively between all 



 functions within the business and suppliers.



 Key input provided from stores and space planning.



Store Format:



 Individual store offers aligned with needs of specific



 customer base.



 Assortments created using store groupings that are 



 based on store-level demand patterns.



 Differentiated and branded services and convenience 



 products.
















TABLE 54





Price and Revenue Management
















Description:
This capability area includes all activities related to the 



management of retail prices and revenue for goods and 



services, including the required planning aspects as well 



as handling slow sellers, clearance and markdowns.


Basic Criteria:
Pricing Methodology:



 Retail price is a simple mark-up on cost price.



 Simple price ladder distribution - entry price, mid 



 price, premium price.



Price Markdowns:



 Simple tactical promotions implemented with little 



 program management.



 Generic price markdown strategies that are generally 



 aggressive e.g. 50%+ off.



Use of Sales History during Contracting:



 Seldom sales and marketing information feedback into 



 contracting and negotiation, new/extension of contract 



 varies significantly.


Competitive
Pricing Methodology:


Criteria:
 Understanding of price sensitive items.



 Price sensitivity models, price halo item selection, 



 category roles.



Price Markdowns:



 Markdown strategies implemented to optimize sales and



 actual andforecast end of season inventory positions.



 Clearly defined exit strategies with options based on 



 product type, priority and trading conditions.



Use of Sales History during Contracting:



 Clearance decisions feedback into contracting and 



 negotiations to build flexibility for high risk lines.


Market Leading 
Pricing Methodology:


Criteria:
 Understand customer segment price sensitivity.



 Statistical understanding of price elasticity.



 Sku store price optimization based on elasticity, 



 distance to competitors, price strategy, etc.



Price Markdowns:



 High inventory lines managed by exception early 



 on in season through what-if modeling.



 Tailored clearance and markdown strategies 



 implemented to optimize margin, sales and inventory 



 levels based on price elasticity and accurate 



 forecasts of sales and stock.



 Use of Sales History during Contracting:



 Flexibility in contract cancellations to reduce stock 



 into business and clearance requirements.
















TABLE 55





Store Inventory Management
















Description:
This capability area includes all activities related to the 



management of inventory, including the regular tracking 



and updating of movements, inventory performance and 



valuation as well as analysis and periodic inventory 



taking.


Basic Criteria:
Inventory Tracking Method:



 ‘Big bang’ manual physical stocktakes occur at certain 



 points in the calendar (quarterly, half yearly).



 Stocktakes based on value as opposed to units.



 Limited shrinkage controls, e.g., Tagging.



 Forecasting, planning and scheduling activities driven 



 by convenient calendar cycles.



Inventory Visibility:



 No SKU level inventory visibility or some stock 



 visibility at store level only; supply is not pooled



 across locations.



 Inventory Performance Management:



 Evaluation of store inventory done manually.



 No metrics for evaluation of store inventory.


Competitive
Inventory Tracking Method:


Criteria:
 Manual physical stocktakes still used.



 Low inventory cycle count accuracy.



 Integrated inventory planning systems.



 Some perpetual inventory counts to provide SKU 



 visibility.



 Forecasting, planning and scheduling time buckets 



 determined by business process cycles (e.g., 



 manufacturing).



Inventory Visibility:



 Inventory visibility on regional basis. Organization is 



 in cross-communications over shared SKUs.



Inventory Performance Management:



 Common KPIs are used for measure the performance 



 for all the store inventory with limited flexibility.


Market Leading
Inventory Tracking Method:


Criteria:
 Ability to utilize capital budget constraints to determine 



 optimal inventory levels and resulting customer 



 service levels.



 Have separate inventory planning processes for: fast 



 turning central stock; contracted inventory in field; 



 new product intro inventory; end of life.



 Collecting POS demand data at the SKU level and 



 aggregating it to develop safety stocks and inventory 



 requirements.



 Extensive use of inventory decisions models - updated 



 regularly.



Inventory Visibility:



 Visibility of inventory across all geographies to be 



 able to minimize safety stock; advance deployment 



 of parts in advance of introduction of new products.



 Supply is pooled and committed based on demand 



 patterns or captured business rules, and termed 



 Available to Promise in an Advanced Planning 



 System.



Inventory Performance Management:



 Advanced system is used to evaluate inventory 



 performance according to historical data collected 



 with integration of customer and vendor.
















TABLE 56





Replenishment
















Description:
This capability area includes all activities related to the 



replenishment of a store with goods and service related 



material, link brochures, forms, etc. It includes demand 



determination activities, order requisition to balance the 



demand as well as the goods receipt. It also covers any 



inter-store transfers and reservations.


Basic Criteria:
Replenishment Method:



 Basic sales based replenishment methods. Replenishment 



 parameters managed at lower levels of the hierarchy 



 (e.g., SKU).



 No replenishment parameter tuning; replenishment 



 parameters are difficult to update.



Replenishment Plan Modifications:



 Manual intervention to change replenishment orders 



 (e.g. exceeding OTB, change forecasts, etc.).



Automated Replenishment Calculations:



 Automated sales based replenishment system based on 



 simple calculations, e.g., min/max, RWIS, etc.



Stock Allocation:



 Stock allocation process independent of store 



 replenishment processes and allocated in a single lump.


Competitive
Replenishment Method:


Criteria:
 Replenishment accountability primarily within dedicated 



 Supply Chain function but with a clearly defined RACI 



 to describe input required from stores, marketing, 



 B&M and logistics.



Replenishment Plan Modifications:



 Optimize replenishment settings by identifying hot 



 sellers early in the season and putting them on back



 order early. 



 Automated ordering based on historical sales, forecasted 



 demand, presentation levels and dynamic safety stock. 



 Exception reporting on out-of-stocks, shortages and 



 excess stock.



Automated Replenishment Calculations:



 Replenishment engine driven by accurate forecasting 



 system within tailored replenishment algorithms. 



 Replenishment integrated with stock management 



 systems to automate ordering/allocations.



Stock Allocation:



 Allocations integrated with replenishment process.



 Variable allocations based on store size/range and on 



 hand quantities and incorporate recent trading history.


Market Leading
Replenishment Method:


Criteria:
 Inventory planners proactively manage the process, 



 tuning replenishment parameters through monitoring 



 key metrics and trends, such as forecast performance, 



 in-stock %, etc.



Replenishment Plan Modifications:



 Continuous replenishment using real-time sales and 



 stock information.



 Replenishment driven by single, high accuracy forecast. 



 Wide range of replenishment cycles, tailored to fit



 product characteristics, category role, supply chain



 requirements. Process integrated with OTB and WSSI.



Automated Replenishment Calculations:



 An advanced replenishment system will determine 



 store/SKU level inventory requirements utilizing 



 multiple forecasting and replenishment methodologies 



 and order at the store/SKU level. Automated alerting



 systems with exception management.



Stock Allocation:



 Allocation decision based on visibility of stock in the 



 pipeline.



 Final store allocations to be delayed until latest possible 



 moment prior to DC arrival to leverage most recent 



 information.
















TABLE 57





Licensing Management
















Description:
This capability area covers the management of postal 



licenses provided to third parties that offer services 



on behalf of the post. After the required partner selection 



is made this area includes the operational support, 



training and integration of a third party as well as 



regular performance audits and the settlement of 



outstanding fees and revenues.


Basic Criteria:
Training Standards:



 Training content development and execution is done 



 by local teams.



 Training not standardized or prioritized.



LPO Support:



 Localized support teams created for each LPO. No 



 standard support channel for all LPOs.



Performance Audits:



 Ad hoc performance audits of LPOs. No standard 



 checklist used in each audit. Audit is performed at 



 the discretion of each employee.


Competitive
Training Standards:


Criteria:
 Training content for LPOs is developed centrally 



 into Computer Based Trainings and store manuals. 



 Training performed on an ad hoc basis as requested 



 by LPOs by local teams.



 Training prioritized and rigorously implemented.



LPO Support:



 A dedicated central team handles all LPO support 



 requests.



Performance Audits:



 Completed with a standard checklist of items for 



 every LPO.


Market Leading
Training Standards:


Criteria:
 One training program instituted. Attendance required 



 for all LPOs.



 Centralized team dedicated to developing training 



 content and training execution.



 Continuous training programs with zero tolerance



 conformance.



Staff Skillset:



 Store staff multi-skilled, tailored by format.



LPO Support:



 Multiple channels of support offered to LPOs, 



 including a call center and web/mobile/email 



 channels.



Performance Audits:



 Audits completed by a central team and the data is 



 used to compare and rate LPO performance. 



 Performance gaps are assessed and



 communicated to LPOs. Used as input to the 



 LPO training development.









The following Tables 58-68 provide an explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the enterprise platform 120.







TABLE 58





Corporate Strategy
















Description:
Please note that the majority of these capabilities are 



being developed by the respective Business Consulting 



Service Lines. Please refer to the Strategy SL asset for 



details on this capability.


Basic Criteria:
Strategic Planning:



 No strategic planning, no collaborative planning; little 



 or no continuous improvement focus.



 Strategic Supply Chain planning takes place in response 



 to major discontinuities or marketplace events.



 Business planning is limited to annual budgeting and 



 forecasting.



 Return on capital employed is used as a key driver of 



 business decisions.


Competitive
Strategic Planning:


Criteria:
 Strategic plan specified, infrequently implemented. 



 Strategic plan and alliance strategy in place.



 Strategic supply chain planning takes place periodically.



 Business planning is structured process including a 



 detailed audit of the previous year's initiatives and the 



 progress made on achieving them.



 The firm makes decisions (e.g., investment decisions) 



 based on cash flow and payback criteria.


Market Leading
Strategic Planning:


Criteria:
 1-3-5 year strategy document; joint continuous 



 improvement based on solid data. Scenario response



 based on real-time status feeds.



 Regular strategic review process keeps proactive 



 supply chain strategy updated.



 The firm uses shareholder value analysis to make 



 business decisions.



 Business planning is a regular and scheduled 



 process. It requires dedication from the entire team.
















TABLE 59





Finance and Accounting
















Description:
This capability relates to finance and accounting 



operations, enterprise performance management, 



capital stewardship and risk management.


Basic Criteria:
Organization has limited processes for F&A, 



business units, or geographies.



Multiple ERP and legacy systems.



Spreadsheets and/or various stand alone applications 



dominate planning, forecasting, data analysis, 



and reporting activities.



No web enablement of any F&A applications.



Department are owners of the processes. Errors 



corrected at the back-end Much time spent chasing 



small $ items.



Nearly all managers with cost center or profit and loss 



responsibility have dedicated finance support. 



No limit on ability to consume finance time.



Finance and Accounting provides basic planning and 



forecasting.



Manages cost structures not consistently and not 



systematically.



Managed costs are gathered and consolidated but not 



optimized.



Applicable laws, regulations, standards are controlled 



by random tests.



Only basic internal policies and rules are available not 



systematically controlled.


Competitive
Organization has define processes for F&A, is limited 


Criteria:
to certain business units or geographies, has service 



centers in moderate to high cost locations.



Single ERP system, with exceptions, some legacy 



systems not yet decommissioned. Best of breed extensions 



deployed inconsistently, spreadsheets still tool of choice. 



Web connections to other functions automated work



flow.



Process owners entirely within Finance. Errors 



corrected at the back-end. Limited use of materiality 



limits.



GMs with profit and loss responsibility have dedicated 



finance support, others share finance resources. 



Limited self service capabilities in place.



Finance and Accounting provides basic planning and 



forecasting.



Cost structures are managed consistently and 



systematically to a medium hierarchy level. .



Some unsystematic optimization of costs is performed.



Applicable laws, regulations, standards are consecutively 



checked and the organization is probed against them. 



Internal policies and rules are defined and communicated 



on a detailed level but internal controls not yet fully 



implemented.


Market Leading
All appropriate transaction processing, closing, and 


Criteria:
reporting. Nearly all redundant activities and organizations 



are eliminated. Service centers even in low cost locations. 



Provides self service capabilities wherever possible.



Single ERP system used worldwide; no legacy system.



Best of breed extensions used with spreadsheets as 



“supplements.



Web connections to customers, suppliers, and other 



functions; automated work flow.



Process owners “Upstream” activities designed with 



“downstream” processing in mind.



Minimum exceptions.



GMs with material profit and loss responsibility 



have dedicated finance support - others share 



finance resources.



Recurring, standard reporting delivered via self serve 



portal. Focuses on business analytics and “what if”' 



scenario planning and forecasting rather than data 



gathering and consolidation.



Manages cost structures down consistently to achieve 



and sustain operating cost leadership. Optimizes 



managed costs such as working capital, effective tax 



rates, benefits costs, etc., in addition to operating 



cost structures.



Ensures effective compliance with applicable laws, 



regulations, standards, internal policies and rules 



(including budgets) in all financial transactions and 



reporting.
















TABLE 60





Human Resources
















Description:
This capability relates to the management of the company's 



human resources and covers all related non-operational 



activities from sourcing to enabling to retiring resources.


Basic 
Following extract non exhaustive for demo and reference 


Criteria:
only - please consult the HP SL for full details.



Ability to Change:



Change is Leadership-driven.



Change is based on the focus, tenacity and leadership 



of an individual.



A top-down approach is used to drive change efforts.



Leaders generally rely on several key techniques to push 



change, such as: invoking an outside crisis; transforming 



the enterprise to a new operating model; articulating a 



common-sense business case for change; and, frequent 



communication with all levels of the organization.



Individuals are generally resistant to change, and 



lack the skills and experience to adapt effectively.



Change efforts take a long time to complete and



often fail to produce expected results.


Competitive
Following extract non exhaustive for demo and 


Criteria:
reference only - please consult the HP SL for full details.



Ability to Change:



Change is process driven, and the responsibility for 



change no longer rests solely with leadership.



Systems within the organization support, rather than 



impede, change.



The organization typically has mechanisms in place 



in the areas of performance measures, employee 



competencies, decision-making, organizational structure, 



and communication that allow employees to not only 



implement change, but drive it in a way that is consistent 



with the organization's reward system and 



performance measures.



Most individuals neither support nor resist change.



Some, but not all individuals are skilled in managing



change.



Change efforts are generally lengthy and costly.


Market 
Following extract non exhaustive for demo and 


Leading
reference only - please consult the HP SL for full details.


Criteria:
Ability to Change:



The organization has developed an organic 



capacity to change 



Change is so ingrained into day-to-day behavior 



that it is in a sense invisible.



This capability and behavior defines the culture 



of the organization.



Change is often driven from the bottom of the 



organization.



Employees do not see it as a separate effort, 



but as part of their jobs, and as an opportunity 



rather than a threat.



The organization embraces learning, relies on 



self-defined, team-based performance measures, 



has high levels of trust between employees and 



management, and focus on developing change 



competencies in employees.



Change typically happens quickly and 



with minor disruptions to the organization.
















TABLE 61





Procurement
















Description:
This capability relates to the provisioning of 



equipment and material for operational activities.


Basic Criteria:
Requisitions:



Paper- or phone-based requisitions placed to 



purchasing or directly to vendor.



Procurement and AP spend large percentage of 



time processing low-dollar transactions.



No formal/consistent approval process in place.



Purchase Goods and Services:



Procurement professionals spend large 



percentage of time sourcing low-dollar 



requisitions into purchase orders.



No supplier rationalization program in place.



Each site has autonomy to source materials and 



services from vendor of choice.



Invoice Processing:



Accounts payable processes are disbursed 



throughout the organization.



Receipt required for the majority of purchases; 



match invoice to purchase order and other 



supporting documentation.



Copies of each invoice is made and stored 



in multiple files in Purchasing, and Accounts 



Payable.



Pay Suppliers:



Automation of payments is unavailable.



Checks are manually produced in some instances.



Payment is made to a supplier even though 



the supplier may owe the buyer.



Multiple invoices from one vendor result in 



multiple checks being issued.



Check runs are not optimized.


Competitive
Requisitions:


Criteria:
Use of Procurement cards to eliminate the 



transactions associated with high-volume, 



low dollar purchases (POs/Invoices).



Web-based requisitioning tools made 



available to select employees.



Approval process in place but not rigidly 



followed; requisitioners have no consistent 



access to status of approval.



Purchase Goods and Services:



Strategic sourcing has reduced suppliers 



but results are not communicated to users; 



“non-approved” suppliers still utilized; 



process to rationalize suppliers is inconsistent.



Requisitioner/BU involved in sourcing decision.



POs transmitted via auto-fax.



Invoice Processing:



Invoices received via EDI or XML, paper



invoices scanned for documentation and 



approval routing purposes.



Invoices not referencing a PO are electronically 



routed for approval; invoices that have been matched 



do not require an additional approval.



Vendors provide weekly/monthly summary invoices.



Pay Suppliers:



Consolidate payments to same supplier from 



invoices across the organization.



Use automatic payment for standard, recurring items.



Electronic check signing/approval can occur remotely.


Market 
Requisitions:


Leading
Utilize eProcurement applications with preferred 


Criteria:
supplier/preferred item catalogs; requisition approval 



steps are automated and minimized; no approval



necessary for expense items below a certain dollar 



amount;



Requisitioners have real time access to 



requisition approval status and PO status.



Purchase Goods and Services:



Routine purchases bypass procurement 



through the use of p-cards, eP, and reorder systems; 



No approval required on PO if obtained on requisition; 



EDI/XML PO sent to supplier via eMarketplace 



or private exchange.



Preferred suppliers are strategically 



selected “partners” and communicated to organization.



Invoice Processing:



View purchasing and payables as one process 



versus two distinct organizations.



Invoiceless processing through use of ERS 



(evaluated receipts settlement, where payment is 



made after matching receipt to purchase order); 



invoices received and processed by centralized 



shared services center or outsourced to third party; 



minimize levels of reporting hierarchy in SSC.



Pay Suppliers:



Entire disbursements process is outsourced to third party; 



payments made via EDI/EFT; 



allow suppliers access to view status of payments.



Link AR and AP systems to prevent payments 



being made to suppliers who are also customers 



with outstanding receivables.
















TABLE 62





Information Technology
















Description:
This capability covers the management of 



Information Technology, and the related 



processes to create, run and maintain the IT 



architecture, applications and infrastructure.


Basic Criteria:
IT Strategy:



Lack of supply chain IT strategy, or supply chain IT 



strategy is not aligned with an enterprise-wide IT strategy.



Limited buy-in to new technology.



New technology is implemented in fragmented 



way that does not cover entire operations area.


Competitive
IT Strategy:


Criteria:
IT strategy defined at specific function level only, 



but may not be articulated across the business.



Developing support for changes in technology. 



Use of PC tools such as spreadsheets and basic database.


Market Leading
IT Strategy:


Criteria:
Enterprise-wide IT strategy clearly defined and understood; 



supports and enables supply chain technology initiatives.



Continuously seek out knowledge on available technology 



and practical application to business.



High degree of buy-in leading to successful 



implementation.



Full integrated transactional systems with decision support 



tools that provide quick resolution to complex issues across



businesses. Explores and utilizes eCommerce opportunities.



Standard suite of end user tools rolled out.



Tool standards exist and are enforced.


Description:
This capability covers the management of Information 



Technology, and the related processes to create, run and 



maintain the IT architecture, applications and 



infrastructure.


Basic Criteria:
General Architecture:



Internally-centric architecture.



All system interfaces are point-to-point, mostly batch. 



Most planning is monthly or weekly.



Many fragmented planning applications with 



overlapping functions/data supporting optimization



at the local level only.



Functionally-oriented applications vs. process-oriented.



Security cannot extend beyond the enterprise.



Discontinuity of business data viewed by different



levels of the organization.



Primary reporting is static printed reports from 



each application.



Data is messaged at each level of the organization 



over a period of time before senior management 



sees it. The value of this old and “improved” 



data is questionable.


Competitive
General Architecture:


Criteria:
Architecture extends beyond the enterprise 



with Point-to-Point business connectivity (i.e., EDI).



System interfaces includes both batch and real-time. 



Planning is mostly weekly or daily.



System integration tools (EAI) provide standard 



package connectors and tools for building or



customizing new integration.



Global consolidation of internal data for global 



decision-making (may be data warehouse). Timing 



age of data is usually an issue.



Process-oriented applications or collections of 



data for cross-process visibility/analysis.



Data for external use is sent to business partners 



or posted in DMZ for viewing/extraction by the 



business partner.



Single data source for all business reporting/



metrics with ad-hoc analysis capabilities. 



Standard KPI defined/reported.


Market Leading
General Architecture:


Criteria:
Global architecture and connectivity. All customers/



suppliers have access to relevant data real-time. 



Data is “trickled in” vs. periodic batch extract.



System interaction is controlled via a data-bus which 



supports both batch and real-time interaction, 



enhances data/process reuse, and is enables reduced 



on-going support effort by better isolation of 



system changes.



Global planning capabilities driven off of global 



instance of real-time data. Data is provided in a 



net-change mode to eliminate long extract/transfer 



processing times. Global planning is run daily or 



even multiple times daily (shift).



Data warehouse and data analytics capability 



replaces most of static reporting. Pre-packaged 



standard metrics and views enable consistent business 



metrics at all levels of the organization.



Business driver KPI's are visible to all 



organizational levels.



Management dashboards with exception-



based views, drill-down and notation capabilities 



are used to drive and improve the business management.
















TABLE 63





Information Technology Development Architecture
















Description:
This capability covers the management of



Information Technology, and the related processes 



to create, run and maintain the IT architecture, 



applications and infrastructure.


Basic Criteria:
Development Architecture:



The development environment consists of PC's 



or one or more small or shared servers.



The test environment is shared with development.



Training is planned without a hands-on component 



or environment.



Multiple tools/technologies are used to source data



from other systems based on the client's current 



environment and tools. Most work is custom. 



Integration is point-to-point.



HW and SW version control process over 



development and test environment is ad-hoc.



Each project team member brings in their own 



tools and methods to the project.



Cross-project communication and coordination



is ad-hoc.


Competitive
Development Architecture:


Criteria:
A development environment setup to deliver 



maximum productivity of project team on 



design/build activities.



A separate test environment is setup to deliver



the complete scope of project testing requirements.



Hands-on training is delivered using the test 



environment.



Integration tools used are provided by the 



planning system vendor or the source system 



and are based on ease/speed of delivery.



Mix of custom and standard or configurable products. 



Integration is product-dependent.



A manual process is established to control HW 



and software changes to all operating environments.



Standard tools are identified and provided to the 



project team based on project needs, and budgeted 



in the project plan.



Cross-project communication and sharing is 



facilitated by providing a shared repository for 



project deliverables and documentation.


Market 
Development Architecture:


Leading
Flexible and separate development and test 


Criteria:
environments are planned, scheduled, built, partitioned 



and scaled to support project maximum project 



effectiveness with parallel work streams and a mix of 



prototyping/dev, unit and full volume system testing, 



user testing and training activities.



A separate training environment is setup and 



maintained as an on-going capability.



A formal data integration layer is built using EAI 



tools reducing overall integration complexity. A small set 



of effective tools used to source data from other systems 



based on best fit and performance requirements. Integration 



is partially de-coupled from the source systems and future 



integration support effort is reduced.



HW and SW change is controlled and delivered 



with a formal process with tools and automated processes 



to insure controlled and efficient change control is delivered 



to the project across all operating environments.



A pre-packaged development environment including



all tools and processes are delivered via solution centers.
















TABLE 64





Information Technology Execution Architecture
















Description:
This capability covers the management of Information 



Technology, and the related processes to create, run



and maintain the IT architecture, applications and 



infrastructure.


Basic Criteria:
Execution Architecture:



Most planning systems have a limited client UI, some 



require client-installed SW, some are web-based. 



Most are focused on planning output data views.



Transaction/Messaging Services for planning are 



typically limited to internal order fulfillment or ATP 



functions.



Batch Services are traditionally at the heart of 



planning systems.



Large/long batch optimization runs are the norm.



Data Transfer Services typically allow for mass 



data movement between applications or internal sites



Database Services are usually coupled with the UI for 



viewing output data.



Security Services are frequently absent in planning 



systems due to the normally small number of users.



Reporting capabilities are generally limited to viewing 



output data online.


Competitive
Execution Architecture:


Criteria:
Some planning products provide both input and output 



data viewing, some also support mass editing capabilities



via upload/download.



Transaction/Messaging Services may also provide



integration of planning and ERP applications for data 



synchronization using EAI.



Batch Services provide periodic refresh of data between 



planning and execution systems, running the optimization 



and controlling complex processing sequences within the 



application.



Data Transfer Services are implemented for both internal 



and external business activity.



Database Services may be extended to data entry and 



output data views via the UI. It may also be used for data 



staging or for better access control.



Security Services are primarily for authentication services



Reporting is delivered by via data warehouse.



Print Services may be deployed where large static 



reporting is delivered.


Market Leading
Execution Architecture:


Criteria:
The best web-based UI has a small network footprint.



Transaction/Messaging Services may be outsourced to 



business network providers for transaction routing or 



provide a message bus within the application architecture.



Batch Services provide control for complex and 



interrelated processes across all applications.



Data Transfer Services may provide secure and 



compress data migration for both internal and 



external system feeds.



Database Services may extend to provide analysis or 



complex reporting capabilities.



Security Services are extended to include authorization



services and user profiles to support internal and 



external user bases.



Reporting is an integral part of the planning solution.



Simple to complex static, ad-hoc, or packaged data 



analytics can deliver this capability.



Offline Simulation/What-if capabilities may be 



provided to allow offline analysis of altering business 



rules to assess impact before they are implemented.
















TABLE 65





Information Technology Infrastructure Management
















Description:
This capability covers the management of Information 



Technology, and the related processes to create, run and 



maintain the IT architecture, applications and 



infrastructure.


Basic Criteria:
Operations Architecture/Physical Infrastructure 



Management:



Processes/Staff exist to assess operational status 



of key datacenter components.



Manual procedures are defined to restore failed services.



Capacity is upgraded based on infrequent analysis, 



actual failures or reported performance problems. 



Recovery activities are always “fire-drills”.



All activity/processes have equal priority/access 



to capacity (servers, networks, services).



Data and SW backup is ad-hoc.



Batch scheduling is handled on a “timed” basis. 



There is no visibility to failed processes. Multi-



application batch integration is ad-hoc or manual.



Printing to local printers is supported via user request. 



There are practical limits on volume and potential 



network impact.



Availability and Performance management is ad-hoc. 



No SLA exists.


Competitive
Operations Architecture/Physical Infrastructure 


Criteria:
Management:



Tools are in-place to monitor and report any primary



service failure.



Processes/scripts are defined for operations or support 



staff to recover failed services.



Capacity is periodically evaluated. Upgrades are



implemented based on evaluation results. Sudden 



changes in resource usage can create surprise failures.



Processes are scheduled to avoid capacity bottlenecks.. 



Manual priority is established for each activity.



Data and SW backups are scheduled as needed. 



Recovery is manual based on request.



Each application has an internal batch scheduling 



capability. Cross-application batch integration is 



handled via “triggering”. Multiple scheduling tools 



may be used.



Mass printing and distribution is handled on site-



based printers and manual distribution.



Formal SLA's are written and metrics established



to manually track and report services availability 



and performance.


Market
Operations Architecture/Physical Infrastructure 


Leading
Management:


Criteria:
Tools, processes and redundancy is planned and 



implemented to automatically recovery from service 



failures (lights out operations).



Capacity is modeled and actively monitored. 



Thresholds are established for alerting support of 



potential failures or performance impacts. 



Priority schemes and tools are implemented to 



reduce capacity requirements and insure critical 



business processes have required capacity.



Data and SW backup and recoveries are fully 



automated. Data and SW redundancy is maintained 



for immediate recovery. Backups are rotated off-site 



for disaster recovery.



There is a master production batch scheduling 



capability. Cross-application integration and visibility 



is fully supported with a single tool.



Print management is implemented to enable print 



routing, support reprint, print monitoring and reduce 



network impact of printing. 



Tools are implemented to constantly monitor and 



report services availability and performance metrics. 



Real-time visibility is provided to SLA compliance.
















TABLE 66





Information Technology Application Management
















Description:
This capability covers the management of 



Information Technology, and the related processes to 



create, run and maintain the IT architecture, 



applications and infrastructure.


Basic Criteria:
Operations Architecture/Application Management:



Manual processes/staff exist to assess operational status 



of key application components.



Manual procedures are defined to restore failed 



application services.



Application support reviews application error 



logs to determine the cause of failures.



Application performance issues are reported by users.



Support then takes action to address them.



Client/Workstation SW must be manually 



distributed/installed and upgraded over time. Old 



versions may be incompatible with new releases.



New SW installation or fix migrations are manual and 



overlays prior software components.



Users call application support directly with application 



questions or problems.



Application availability and performance levels 



are managed ad-hoc. 



No SLA exists.


Competitive
Operations Architecture/Application 


Criteria:
Management:



Tools are in-place to monitor and report a key 



application service failure.



Processes/scripts are defined for support staff to 



recover failed application services.



The application error logs are parsed and 



detected errors create an alert or notification of 



failures.



Application performance is periodically evaluated 



to insure it continues to meet business needs.



Clients use web browser, but must download



and install browser plug-in. Version checking is 



embedded to prevent application corruptions. 



Processes/Scripts are built to migrate SW changes 



across environments (including maintaining copies 



of old versions).



Users or application help desk log problems to a 



problem ticket capability. Support staff monitor 



and address problems reported. Formal SLA's are 



written and a process established to manually track



and report key application metrics.


Market Leading
Operations Architecture/Application Management:


Criteria:
Tools are implemented and integrated with the 



application to detect and auto-recover from



many application service failures. Where automated



recovery is not possible, automated notification 



of the failure is executed.



Tools are implemented to collect and monitor 



key application performance metrics. Key thresholds 



are established and support is notified to proactively 



address potential performance problems.



All user components are Web-based (no plug-ins). 



Standard browser is all that is needed. 



No SW distribution, no version control issues.



Tools are implemented to control changes, 



maintain code versions, and package/deliver 



upgrades across environments. Both install or 



back-out can be executed rapidly.



Users log problem tickets and support is immediately 



notified of critical issues. Users are notified when 



ticket/problem is closed. Key SLA support metrics 



are captured and reported.



Tools are implemented to constantly monitor and 



report application availability and performance metrics. 



Real-time visibility is provided to SLA compliance.
















TABLE 67





Performance Management
















Description:
The capability covers process steps to define and 



set targets based to measure and report corporate 



performance. The nature of the processes is generic, 



which makes them applicable to all capabilities that 



need to be measured. This capability area is closely 



related to Finance.


Basic 
Operations Management Objectives:


Criteria:
Performance measures are focused on individual 



performance and not related to business objectives.



End-to-end Integration:



Performance measures do not span the supply chain



due to limited alignment of departmental goals.



Measure Focus:



Performance measures are limited to financial 



measures only.



Performance measures focus on punishment 



rather than reward.



Scope of Metrics:



Performance metrics for organizations, work teams, 



and individuals are minimal.


Competitive
Operations Management Objectives:


Criteria:
Some team performance measures have been 



introduced that are focused on business unit 



objectives.



End-to-end Integration:



Performance measures span the internal supply 



chain but mainly from a high level strategic 



perspective.



Measure Focus:



Performance measures are used to prioritize 



action points for key customers.



Performance measures are used to promote 



collaboration with suppliers to improve services, 



but are also used to serve the relationship if no 



immediate improvements are obtained.



Scope of Metrics:



Functional performance objectives are used.


Market 
Operations Management Objectives:


Leading
There is an integrated performance management 


Criteria:
system where an optimal mix of individual and 



team measures are directly tied to business objectives.



End-to-end Integration:



Performance measures span the internal and 



external supply chain and are operationally as well as 



strategically focused and linked to customer 



needs satisfaction. The total supply chain is 



monitored continuously and measures are used to



optimize performance.



Measure Focus:



There is a full range of heard financial and soft 



performance measures to ensure that customer 



needs are fully met.



Delivery to customer requested delivery dates is 



measured, as well as order aging for back orders.



Performance measures focus on rewards and 



improvement opportunities.



Scope of Metrics:



Business strategy, performance objectives and 



goals for organization, work teams and individuals 



are defined and aligned with performance targets 



and goals.


Description:
The capability covers process steps to define and set 



targets based to measure and report corporate 



performance. The nature of the processes is generic, 



which makes them applicable to all capabilities that 



need to be measured. This capability area is closely 



related to Finance.


Basic 
Usage of Metrics:


Criteria:
Metrics are occasionally used to drive performance.



Focus of Metrics:



Metrics internally focused, such as terminal utilization, 



vehicle utilization and production variance; KPIs are 



measured monthly or quarterly.


Competitive
Usage of Metrics:


Criteria:
Metrics integrated into incentive programs and 



reward structure.



Focus of Metrics:



Metrics are work group and business focused, 



such as output, yield, and efficiency; 



KPIs are measured weekly or daily.


Market 
Usage of Metrics:


Leading
Metrics are integrated into incentive programs 


Criteria:
and used to drive continuous performance 



improvement.



Focus of Metrics:



Metrics are customer and shareholder value



focused, such as on-time delivery, product 



quality and profitability; KPIs are measured at 



optimal frequency to allow immediate corrective action.
















TABLE 68





Quality Management
















Description:
This capability covers all processes to 



ensure and maintain the required high 



levels of quality for services and products 



offered and produced, throughout the 



entire value chain.


Basic 
Quality is been reviewed occasionally 


Criteria:
and locally. Actions to improvement 



are taken on an operational basis.



Basic understanding of requirements with 



many gaps. Infrequent updates to customer needs.



No defined quality strategy.



No defined quality process.



Carriers do not participate in quality 



driven initiatives.


Competitive
Quality management processes are established. 


Criteria:
Targets are locally defined and measured 



with a well-defined KPI metrics. 



Adequate understanding of requirements 



with a few gaps.



Periodic updates reflect changing customer needs.



Each business unit uses separate transportation 



quality strategies.



Initiating TQM process, having completed 



ISO9000 programs.



Carriers mandated to participate in quality 



programs.


Market 
Enterprise wide quality targets are set up. 


Leading
Measurements based on a well defined structured 


Criteria:
process are taken. Targets are defined.



Measures to improve quality are defined 



on operational, tactical and strategic levels.



Clear understanding of needs. Requirements 



continuously updated.



A formal, firm-wide transportation-specific 



quality strategy is in place.



Fully developed TQM process implemented 



into transportation with independent audits.



Carriers participate fully in quality process.









FIG. 12 shows a multidimensional postal industry performance reference set 1200 (“reference set 1200”) that provides a capability detail pool from which the system described below may obtain benchmarking tables for a postal business. The reference set 1200 includes multiple key assessment performance reference tables (“reference tables”), two of which are labeled 1202 and 1204. Each reference table may provide the benchmarking criteria for a specific capability, such as those noted above with respect to FIGS. 2-11.
One dimension of each table may establish the ‘Basic’ performance capability level 140 specifying ‘Basic’ performance assessment criteria, the ‘Competitive’ performance capability level 142 specifying ‘Competitive’ performance assessment criteria, and the ‘Market Leading’ performance capability level 144 specifying ‘Market Leading’ performance assessment criteria. Another dimension of each table may specify one or more key assessment areas (KAAs), several of which are labeled 1206, 1208, and 1210. As noted above, performance capability criteria, e.g., the PCC 1212, populates each key assessment performance reference table to provide benchmark criteria for ‘Basic’, ‘Competitive’, and ‘Market Leading’ characteristics.
The reference set 1200 represents the HPCA model 100. Consistent with the HPCA model 100, the reference set 1200 may organize multiple reference tables into a hierarchical structure defining discrete changes in granularity. In one implementation, the hierarchical structure includes reference tables, sub-platforms, platforms, and models. FIG. 12 labels three sub-platforms 1214, 1216, and 1218. The reference set 1200 may further organize the sub-platforms into platforms, two of which are labeled 1220 and 1222. Platforms aggregate into the HPCA model 100 and corresponding reference set 1200. Additional, different, or fewer levels of granularity may be defined in the HPCA model 100.
The reference set 1200 may dynamically populate the reference tables with the most up-to-date performance capability criteria, for example upon retrieval and presentation by a business analysis consultant. The performance capability criteria may be retrieved from a performance capability criteria database or other information source.
FIG. 12 also shows an example of a database implementation 1224 of a portion of a reference table. In particular, the database implementation 1224 includes records (e.g., the records 1226, 1228, 1230) that establish each PCC 1212. In the example shown, each record includes a PCC field 1232, a category specifier field 1234, and a KAA specifier field 1236. Other fields may be provided, such as a reference table assignment field or reference set assignment field. The records categorize each PCC into a specific category (e.g., Basic), into a specific KAA, and, optionally, into a specific reference table in a specific reference set for any particular HPCA model.
FIG. 13 shows a high performance capability assessment system (“system”) 1300. The system 1300 includes a processor 1302 and a memory 1304. Several databases support the operation of the system 1300, including a performance capability database 1306, a performance measured database 1308, a capability detail pool database 1310, and an assessment results database 1326. The system 1300 may include a local display 1312 and input/output interfaces 1317 (e.g., including a keyboard, mouse, microphone, speakers, or other device), and, through the communication interface 1314 and networks 1316, may communicate with remote devices 1318 and remote displays 1320. The networks 1316 may be any combination of external networks (e.g., the Internet) and internal networks (e.g., corporate LANs). The displays 1312 and 1320 may, for example, present performance capability assessment models 1322 that the system 1300 retrieves from the capability detail pool database 1310 for review, modification, and application by process engineers or other individuals. With regard to local, access or access by the remote devices 1318, the system 1300 may include a login processing program 1324 to authenticate and/or authorize access to the system 1300. To that end, the login processing program 1324 may include username/password verification, private/public key encryption, or other validation and data protection capabilities.
In one implementation, the performance capability database 1306 stores performance capability criteria. As will be described in more detail below, the system 1300 may populate performance capability assessment models with performance capability criteria suited to any particular platform (e.g., customer interaction platform 102, enablement platform 104 and asset management platform 106 etc.) and business capability at one or more capability levels across one or more key assessment areas. The performance measured database 1308 may store the determined, measured, or otherwise ascertained characteristics, criteria, and other measured data of a particular key assessment area as representative practice data 1348. The representative practice data 1348 may be obtained through interviews with business consultants and industrial engineers, through online questionnaires, through manual or automated analysis of business data (e.g., year end operating reports), or in other manners. The capability detail pool database 1310 stores the capability detail pool 1200, which includes pre-defined performance capability assessment models 1322. The assessment results database 1326 stores determined capability levels for specific capabilities that have been analyzed.
The system 1300 facilitates the review, modification, creation, and application of performance capability assessment models. In that role, performance capability assessment model manipulation logic (“manipulation logic”) 1346 within the system 1300 creates, retrieves, and stores capability assessment data 1328 in the memory 1304. The manipulation logic 1346 may establish capability assessment data 1328 in the memory 1304, including a capability assessment data structure 1330 with multiple capability levels (“CL”) 1332 organized along a capability scale dimension, multiple key assessment areas (“KAA”) 1334 organized along a key factor dimension, and performance capability criteria (“PCC”) 1336 that populates the performance capability assessment model 1330. The manipulation logic 1346 may vary widely in implementation, and, as one example, may include data storage logic 1352 that saves data in memory and user interface logic that accepts capability level specifications, key assessment area specifications and performance capability criteria inputs to create new performance capability assessment models, modify existing performance capability assessment models, delete performance capability assessment models, or retrieve performance capability assessment models for review.
In one implementation, the manipulation logic 1346 establishes the capability assessment data structure 1330 to include a multidimensional postal industry performance reference set that includes multiple key assessment performance reference tables in which the key assessment performance reference tables include a ‘Basic’ performance capability level, a ‘Competitive’ performance capability level and a ‘Market Leading’ performance capability level.
The capability assessment data 1328 may also include a capability position specifier 1338. The capability position specifier 1338 may record the capability level along the performance capability scale 146, as determined for any particular capability. Thus, the system 1300 may store the capability level in the assessment results database 1326 or elsewhere for future retrieval and review.
In one implementation, the data population logic 1340 may be a data population program executed by the processor 1302 that populates template performance capability assessment models. For example, the data population logic 1340 may include input logic 1350 that accepts input specifying a capability of interest that indicates a particular performance capability assessment model. The data population logic 1340 may include query logic 1345 that executes database queries and prompts a user for input to obtain the corresponding performance capability criteria for the capability of interest.
In another implementation, for example, the query logic 1345 may receive an input specifying a postal industry area and a postal industry key assessment area with the postal industry area for analysis. The query logic 1345 searches the multidimensional postal industry performance reference set for a matching key assessment performance reference table that matches the postal industry area and the postal industry key assessment area, and retrieves the matching key assessment performance reference table.
The data population logic 1340 may further include storage logic that adds the retrieved performance capability criteria to the template performance capability assessment model. The data population logic 1340 produces populated performance capability assessment structures 1342 that may be stored in the capability detail pool database 1310.
In addition to the analysis process described above, the system 1300 may provide an automated analysis of representative practice data 1348 that identifies relevant performance capability criteria and determines the position on the performance capability scale 146 of each key assessment area corresponding to the performance capability criteria for the representative practice data 1348. As one example, the system 1300 may implement capability assessment logic 1344 that includes comparison and/or matching logic that analyzes the representative practice data 1348 with respect to performance capability criteria to locate key assessment areas for which the system 1300 can determine capability levels to obtain a resultant performance capability level for each key assessment area.
Furthermore, the capability assessment logic 1344 may determine an overall position on the performance capability scale 146 as the capability position specifier 1338, for a capability under examination given the knowledge of where the key assessment areas corresponding to the capability under examination fall in each capability level. Thus, for example, the capability assessment logic 1344 may determine an overall capability level for a capability corresponding to the capability level for the majority of the key assessment areas, or it may apply a weighted analysis technique to give more emphasis to some key assessment areas than others in determining the overall position on the performance capability scale 146 for a capability. As another example, the capability assessment logic 1344 may implement an expert system (e.g., based on a neural network trained on prior determinations) that analyzes the determined characteristics with respect to the performance capability criteria and ascertains where the capability under examination falls along the performance capability scale 146 for each of the key assessment areas, or overall on the performance capability scale.
FIG. 14 shows a flow diagram 1400 for creating performance capability assessment models. The performance capability assessment model creator (e.g., the manipulation logic 1346) establishes a key factor dimension for the performance capability assessment model (1402). The performance capability assessment model creator also establishes a capability scale dimension for the performance capability assessment model (1404). The capability scale dimension may define a scale of increasing organizational capability. For example, the structure creator may create the ‘Basic’ capability level 140, the ‘Competitive’ capability level 142, and the ‘Market Leading’ capability level 144. The performance capability assessment model creator also populates the performance capability assessment model with performance capability criteria (1406). A capability detail pool 1200 may be formed to hold multiple tailored key assessment performance reference tables (1408). The performance capability assessment model creator may store the populated assessment structure in the capability detail pool for subsequent retrieval and analysis (1410).
FIG. 15 shows a flow diagram 1500 for retrieving and applying performance capability assessment models. A selection of a capability to be analyzed is obtained (1502). In one implementation, the system 1300 receives input data that specifies a postal industry area and a postal industry key assessment area for analysis. For example, the system 1300 may accept input from a business consultant that specifies a capability for analysis. The system 1300 may query the capability detail pool 1200 for a corresponding performance capability assessment model (1504). The corresponding performance capability assessment model may be pre-defined in the capability detail pool 1200, or the data population logic 1230 (or other actor) may populate a performance capability assessment model template that the system 1300 newly creates, or that the system 1300 retrieves from a data store, such as the capability detail pool database 1310.
In another example, the system 1300 searches the multidimensional postal industry performance reference set in the capability detail pool 1200 for a matching key assessment performance reference table based on the input data that specifies a postal industry platform and a postal industry key assessment area. The system 1300 retrieves the matching key assessment performance reference table and initiates analysis of the matching key assessment performance reference table to obtain a resultant performance capability level for the postal industry key assessment area.
The system 1300 obtains representative practice data 1348 for the capability under examination in the specific business under review (1506). For example, a business consultant may interview the business to determine how the business currently executes the capability under review. As another example, a representative from the business may complete a questionnaire, submit business data for analysis and parameter extraction, or otherwise provide the characteristics of their current capability execution. As a further example, the system 1300 may retrieve the representative practice data 1348 from a database of previously obtained representative practice data.
The system 1300 compares the representative practice data 1348 to the performance capability criteria in the performance capability assessment model (1508). For example, a business consultant may use his or her expertise to arrive at a determination of capability level for the business and the capability under examination (1510). Alternatively or additionally, the capability assessment logic 1344 may perform an automated analysis of the assessment results data in the assessment results database 1326 and ascertain the capability level on the performance capability scale 146 (1510). The system 1300 may store the assessment results, including the determined capability level, for future reference in the assessment results database 1326 or other location (1512).
FIG. 16 shows a flow diagram 1600 for analyzing representative practice data 1348 to determine a postal industry and a postal key assessment area to which the representative practice data applies. The system 1300 receives representative practice data 1348 as input data (1602). The system 1300 may receive the representative practice data 1348 from a database query performed by the query logic 1345 that the query logic executes periodically, when instructed by an operator, and/or automatically against any number of available database sources that store representative practice data 1348. The capability assessment logic 1344 analyzes the representative practice data 1348 to identify performance capability criteria in the capability detail pool 1200 that the capability assessment logic 1344 determines relevant to the representative practice data 1348 (1604). For example, the capability assessment logic 1344 may compare and/or match the content of the representative practice data 1348 with the performance capability criteria using natural language processing (NLP), text string and/or substring matching, by comparing tags linked to the representative practice data 1348 and that specify that any portion of the representative practice data 1348 is applicable to a specific PCC, by querying for a manual classification of the representative practice data 1348 to a PCC, or other matching technique. The capability assessment logic 1344 may score and/or weight a performance capability criteria and compare the score and/or weight to a user specified relevance threshold to rank the relevance of the performance capability criteria to the representative practice data 1348 (1606). The user may specify particular terms and/or phrases to search and match between the performance capability criteria and the representative practice data 1348, in order to score the performance capability criteria.
The capability assessment logic 1344 may determine, based on the number of performance capability criteria that meet or exceed the relevance threshold, that the capability assessment logic 1344 has identified a sufficient number of performance capability criteria for a specific key assessment area in order to determine a performance capability level for the capability as a whole or any key assessment area within the capability (1608). As one example, where at least 51% of the performance capability criteria for a particular key assessment area meet or exceed the relevance threshold, the capability assessment logic 1344 applies the performance capability criteria to the representative practice data 1348. In another example, the performance capability criteria for a particular key assessment area may be ranked in importance and/or designated as mandatory in order to assess the key assessment area. In the event the capability assessment logic 1344 identifies the mandatory performance capability criteria for a key assessment area the capability assessment logic 1344 applies the performance capability criteria to the representative practice data 1348.
The capability assessment logic 1344 may apply the performance capability criteria meeting or exceeding the relevance threshold to the representative practice data 1348 to determine whether any particular PCC is met. Accordingly, as the capability assessment logic 1344 analyzes the PCC, the system 1300 tracks the best fit of the representative practice data 1348 to the PCCs in the key assessment performance reference tables. In other words, the system 1300 determines how the representative practice data 1348 meets (or does not meet) each PCC, thereby gaining insight into whether the representative practice data 1348 is indicative of Basic, Competitive, or Market Leading practices.
The system 1300 may also gauge the position on the performance capability scale 146 of each key assessment area corresponding to the performance capability criteria (1610). The capability assessment logic 1344 may further determine an overall position on the performance capability scale 146 for a capability (1612). The capability assessment logic 1344 may establish that a desired number and/or designated mandatory performance capability criteria for the key assessment areas have been identified as relevant to a capability and sufficient to determine the position on the performance capability scale 146 for the capability. For example, the capability assessment logic 1344 may determine an overall capability level for the capability based on the capability level determined for the majority of the key assessment areas. The capability assessment logic 1344 may apply a weighted analysis technique to give more emphasis to some key assessment areas than others in determining the overall position on the performance capability scale 146 for the capability. Although selected aspects, features, or components of the implementations are depicted as being stored in computer-readable memories (e.g., as computer-executable instructions or performance capability assessment models), all or part of the systems and structures may be stored on, distributed across, or read from other computer-readable media. The computer-readable media may include, for example, secondary storage devices such as hard disks, floppy disks, and CD-ROMs; a signal, such as a signal received from a network or received at an antenna; or other forms of memory, including ROM or RAM, either currently known or later developed.
Various implementations of the system 1300 may include additional or different components. A processor may be implemented as a microprocessor, a microcontroller, a DSP, an application specific integrated circuit (ASIC), discrete logic, or a combination of other types of circuits or logic. Similarly, memories may be DRAM, SRAM, Flash or any other type of memory. The processing capability of the system may be distributed among multiple system components, such as among multiple processors and memories, optionally including multiple distributed processing systems. Parameters, databases, and other data structures may be separately stored and managed, may be incorporated into a single memory or database, may be logically and physically organized in many different ways, and may be implemented in many ways, including data structures such as linked lists, hash tables, or implicit storage mechanisms. Programs may be combined or split among multiple programs, or distributed across several memories and processors.
The HPCA 100 model provides unexpectedly good results for a performance capability assessment model, particularly in the postal industry. In particular, the combinations of key assessment areas and particular assessment criteria of the HPCA model, including the criteria noted in Tables 4-68 above, provide significant advantages over other assessment models. The unexpectedly good results include clearly identifying and delineating from among multiple related complex processes specific processes to improve, and how to improve the process and identifying concrete and measurable improvement goals.
While various embodiments of the invention have been described, it will be apparent to those of ordinary skill in the art that many more embodiments and implementations are possible within the scope of the invention. Accordingly, the invention is not to be restricted except in light of the attached claims and their equivalents.

## Claims

1. A computer-implemented method for high performance capability assessment of a postal business, comprising:
defining, by a processor coupled to a machine-readable memory, a multidimensional postal industry performance reference set stored in the memory and comprising multiple key assessment performance reference tables, at least one key assessment performance reference table further defining an enablement platform including:
a ‘Basic’ performance capability level specifying ‘Basic’ performance assessment criteria;
a ‘Competitive’ performance capability level specifying ‘Competitive’ performance assessment criteria;
a ‘Market Leading’ performance capability level specifying ‘Market Leading’ performance assessment criteria;

establishing capacity planning performance assessment criteria,
wherein the ‘Basic’ performance assessment criteria includes a first criteria: Demand forecasting is based on historical trends only;
wherein the ‘Competitive’ performance assessment criteria includes a first criteria: Marketing insights (trends, events), sales forecasts, and external sources are used in order to forecast demand; and
wherein the ‘Competitive’ performance assessment criteria includes a first criteria: Marketing insights (trends, events), sales forecasts, and external sources are used in order to forecast demand;

receiving, through a communication interface coupled to the processor, an input specifying a postal industry area and a postal industry key assessment area (KAA) with the postal industry area for analysis;
searching, by the processor, the multidimensional postal industry performance reference set for a matching key assessment performance reference table that matches the postal industry area and the postal industry key assessment area (KAA);
retrieving, by the processor, the matching key assessment performance reference table;
analyzing, by the processor, the matching key assessment performance reference table; and
obtaining, by the processor, a resultant performance capability level for the postal industry key assessment area (KAA).

2. A computer-implemented method for high performance capability assessment of a postal business, comprising:
defining, by a processor coupled to a machine-readable memory, a multidimensional postal industry performance reference set stored in the memory and comprising multiple key assessment performance reference tables, at least one key assessment performance reference table further defining an enablement platform including:
a ‘Basic’ performance capability level specifying ‘Basic’ performance assessment criteria;
a ‘Competitive’ performance capability level specifying ‘Competitive’ performance assessment criteria;
a ‘Market Leading’ performance capability level specifying ‘Market Leading’ performance assessment criteria;

establishing network planning performance assessment criteria,
wherein the ‘Basic’ performance assessment criteria includes a first criteria: Simple mono-modal national network based on historically grown structures, processing presence in each (local) geography served;
wherein the ‘Competitive’ performance assessment criteria includes a first criteria: Regional network with limited flexibility;
and
wherein the ‘Market Leading’ performance assessment criteria includes a first criteria: Global network strategy under proactive reviews;

receiving, through a communication interface coupled to the processor, an input specifying a postal industry area and a postal industry key assessment area (KAA) with the postal industry area for analysis;
searching, by the processor, the multidimensional postal industry performance reference set for a matching key assessment performance reference table that matches the postal industry area and the postal industry key assessment area (KAA);
retrieving, by the processor, the matching key assessment performance reference table;
analyzing, by the processor, the matching key assessment performance reference table; and
obtaining, by the processor, a resultant performance capability level for the postal industry key assessment area (KAA).

3. A computer-implemented method for high performance capability assessment of a postal business, comprising:
defining, by a processor coupled to a machine-readable memory, a multidimensional postal industry performance reference set stored in the memory and comprising multiple key assessment performance reference tables, at least one key assessment performance reference table further defining an enablement platform including:
a ‘Basic’ performance capability level specifying ‘Basic’ performance assessment criteria;
a ‘Competitive’ performance capability level specifying ‘Competitive’ performance assessment criteria;
a ‘Market Leading’ performance capability level specifying ‘Market Leading’ performance assessment criteria;

establishing production planning performance assessment criteria,
wherein the ‘Basic’ performance assessment criteria includes a first criteria: Planning process is reactive due to limited information and visibility of future demand;
wherein the ‘Competitive’ performance assessment criteria includes a first criteria: Planning is done for multiple time horizons with varying time buckets and product levels;
and
wherein the ‘Market Leading’ performance assessment criteria includes a first criteria: Simultaneous optimization of all planning activities;

receiving, through a communication interface coupled to the processor, an input specifying a postal industry area and a postal industry key assessment area (KAA) with the postal industry area for analysis;
searching, by the processor, the multidimensional postal industry performance reference set for a matching key assessment performance reference table that matches the postal industry area and the postal industry key assessment area (KAA);
retrieving, by the processor, the matching key assessment performance reference table;
analyzing, by the processor, the matching key assessment performance reference table; and
obtaining, by the processor, a resultant performance capability level for the postal industry key assessment area (KAA).

4. The computer-implemented method of claim 1, further including establishing fleet and equipment management performance assessment criteria.

5. The computer-implemented method of claim 1, further including establishing address management performance assessment criteria.

6. A computer-implemented method for high performance capability assessment of a postal business, comprising:
defining, by a processor coupled to a machine-readable memory, a multidimensional postal industry performance reference set stored in the memory and comprising multiple key assessment performance reference tables, at least one key assessment performance reference table defining an mail operations platform including:
a ‘Basic’ performance capability level specifying ‘Basic’ performance assessment criteria;
a ‘Competitive’ performance capability level specifying ‘Competitive’ performance assessment criteria;
a ‘Market Leading’ performance capability level specifying ‘Market Leading’ performance assessment criteria;

further including establishing mail production performance assessment criteria,
wherein the ‘Basic’ performance assessment criteria includes a first criteria: Customer requirements are collected manually;
wherein the ‘Competitive’ performance assessment criteria includes a first criteria: Created based on customer requirement on an ad-hoc basis; and
wherein the ‘Market Leading’ performance assessment criteria includes a first criteria: Historical data is used for forecasting the large mailing in advance;

receiving, through a communication interface coupled to the processor, an input specifying a postal industry area and a postal industry key assessment area (KAA) with the postal industry area for analysis;
searching, by the processor, the multidimensional postal industry performance reference set for a matching key assessment performance reference table that matches the postal industry area and the postal industry key assessment area (KAA);
retrieving, by the processor, the matching key assessment performance reference table;
analyzing, by the processor, the matching key assessment performance reference table; and
obtaining, by the processor, a resultant performance capability level for the postal industry key assessment area (KAA).

7. A computer-implemented method for high performance capability assessment of a postal business, comprising:
defining, by a processor coupled to a machine-readable memory, a multidimensional postal industry performance reference set stored in the memory and comprising multiple key assessment performance reference tables, at least one key assessment performance reference table defining an mail operations platform including:
a ‘Basic’ performance capability level specifying ‘Basic’ performance assessment criteria;
a ‘Competitive’ performance capability level specifying ‘Competitive’ performance assessment criteria;
a ‘Market Leading’ performance capability level specifying ‘Market Leading’ performance assessment criteria;

establishing mail preparation performance assessment criteria,
wherein the ‘Basic’ performance assessment criteria includes a first criteria: Based on the customer requirement, demographic or geographic type information;
wherein the ‘Competitive’ performance assessment criteria includes a first criteria: Multiple queries can be performed depending on the type of mailing list;
and
wherein the ‘Market Leading’ performance assessment criteria includes a first criteria: Personalized customer data can be retrieved from postal database as a value added service provide to large mailer;

receiving, through a communication interface coupled to the processor, an input specifying a postal industry area and a postal industry key assessment area (KAA) with the postal industry area for analysis;
searching, by the processor, the multidimensional postal industry performance reference set for a matching key assessment performance reference table that matches the postal industry area and the postal industry key assessment area (KAA);
retrieving, by the processor, the matching key assessment performance reference table;
analyzing, by the processor, the matching key assessment performance reference table; and
obtaining, by the processor, a resultant performance capability level for the postal industry key assessment area (KAA).

8. A computer-implemented method for high performance capability assessment of a postal business, comprising:
defining, by a processor coupled to a machine-readable memory, a multidimensional postal industry performance reference set stored in the memory and comprising multiple key assessment performance reference tables, at least one key assessment performance reference table defining an mail operations platform including:
a ‘Basic’ performance capability level specifying ‘Basic’ performance assessment criteria;
a ‘Competitive’ performance capability level specifying ‘Competitive’ performance assessment criteria;
a ‘Market Leading’ performance capability level specifying ‘Market Leading’ performance assessment criteria;

establishing acceptance and induction performance assessment criteria,
wherein the ‘Basic’ performance assessment criteria includes a first criteria: No communication between acceptance units and large mailers until mailings arrive;
wherein the ‘Competitive’ performance assessment criteria includes a first criteria: Large mailer receiving includes some level of scheduling and pre-advice;
and
wherein the ‘Market Leading’ performance assessment criteria includes a first criteria: Large mailer receiving system used to schedule mailers and collect pre-advice data about their mailings;

receiving, through a communication interface coupled to the processor, an input specifying a postal industry area and a postal industry key assessment area (KAA) with the postal industry area for analysis;
searching, by the processor, the multidimensional postal industry performance reference set for a matching key assessment performance reference table that matches the postal industry area and the postal industry key assessment area (KAA);
retrieving, by the processor, the matching key assessment performance reference table;
analyzing, by the processor, the matching key assessment performance reference table; and
obtaining, by the processor, a resultant performance capability level for the postal industry key assessment area (KAA).

9. The computer-implemented method of claim 6, further including establishing mail sorting performance assessment criteria.

10. The computer-implemented method of claim 6, further including establishing mail management performance assessment criteria.

11. A computer-implemented method for high performance capability assessment of a postal business, comprising:
defining, by a processor coupled to a machine-readable memory, a multidimensional postal industry performance reference set stored in the memory and comprising multiple key assessment performance reference tables, at least one key assessment performance reference table defining a supplemental services platform including:
a ‘Basic’ performance capability level specifying ‘Basic’ performance assessment criteria;
a ‘Competitive’ performance capability level specifying ‘Competitive’ performance assessment criteria;
a ‘Market Leading’ performance capability level specifying ‘Market Leading’ performance assessment criteria;

establishing customs management performance assessment criteria,
wherein the ‘Basic’ performance assessment criteria includes a first criteria: Customs is managed paper-based at least on one side, resulting in additional data capture effort;
wherein the ‘Competitive’ performance assessment criteria includes a first criteria: Customs documentation is generated and submitted electronically; and
wherein the ‘Market Leading’ performance assessment criteria includes a first criteria: High level of process and system integration with customs authorities;

receiving an input specifying a postal industry area and a postal industry key assessment area (KAA) with the postal industry area for analysis;
searching, by the processor, the multidimensional postal industry performance reference set for a matching key assessment performance reference table that matches the postal industry area and the postal industry key assessment area (KAA);
retrieving, by the processor, the matching key assessment performance reference table;
analyzing, by the processor, the matching key assessment performance reference table; and
obtaining, by the processor, a resultant performance capability level for the postal industry key assessment area (KAA).

12. A computer-implemented method for high performance capability assessment of a postal business, comprising:
defining, by a processor coupled to a machine-readable memory, a multidimensional postal industry performance reference set stored in the memory and comprising multiple key assessment performance reference tables, at least one key assessment performance reference table defining a supplemental services platform including:
a ‘Basic’ performance capability level specifying ‘Basic’ performance assessment criteria;
a ‘Competitive’ performance capability level specifying ‘Competitive’ performance assessment criteria;
a ‘Market Leading’ performance capability level specifying ‘Market Leading’ performance assessment criteria;

establishing yard and handling area management performance assessment criteria,
wherein the ‘Basic’ performance assessment criteria includes a first criteria: Traffic not coordinated;
wherein the ‘Competitive’ performance assessment criteria includes a first criteria: Movement lanes and vehicle flows are defined;
and
wherein the ‘Market Leading’ performance assessment criteria includes a first criteria: Traffic control (traffic lights) and planned slotting on the yard;

receiving an input specifying a postal industry area and a postal industry key assessment area (KAA) with the postal industry area for analysis;
searching, by the processor, the multidimensional postal industry performance reference set for a matching key assessment performance reference table that matches the postal industry area and the postal industry key assessment area (KAA);
retrieving, by the processor, the matching key assessment performance reference table;
analyzing, by the processor, the matching key assessment performance reference table; and
obtaining, by the processor, a resultant performance capability level for the postal industry key assessment area (KAA).

13. A computer-implemented method for high performance capability assessment of a postal business, comprising:
defining, by a processor coupled to a machine-readable memory, a multidimensional postal industry performance reference set stored in the memory and comprising multiple key assessment performance reference tables, at least one key assessment performance reference table defining a supplemental services platform including:
a ‘Basic’ performance capability level specifying ‘Basic’ performance assessment criteria;
a ‘Competitive’ performance capability level specifying ‘Competitive’ performance assessment criteria;
a ‘Market Leading’ performance capability level specifying ‘Market Leading’ performance assessment criteria;

establishing track and trace performance assessment criteria,
wherein the ‘Basic’ performance assessment criteria includes a first criteria: Shipment status information is recorded manually or by scanning documents;
wherein the ‘Competitive’ performance assessment criteria includes a first criteria: Scanning information is recorded in addition to the manual status information;
and
wherein the ‘Market Leading’ performance assessment criteria includes a first criteria: Manual or automated (RFID) scanning are recorded additionally to manual status information;

receiving an input specifying a postal industry area and a postal industry key assessment area (KAA) with the postal industry area for analysis;
searching, by the processor, the multidimensional postal industry performance reference set for a matching key assessment performance reference table that matches the postal industry area and the postal industry key assessment area (KAA);
retrieving, by the processor, the matching key assessment performance reference table;
analyzing, by the processor, the matching key assessment performance reference table; and
obtaining, by the processor, a resultant performance capability level for the postal industry key assessment area (KAA).

14. The computer-implemented method of claim 11, further including establishing payment handling performance assessment criteria.

15. The computer-implemented method of claim 11, further including establishing special requirements management performance assessment criteria.