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.

Description:
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 &lt;platform name&gt; 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&#39;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 (&gt;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&#39;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 (&lt;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&#39;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&#39;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&#39;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&#39;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&amp;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&#39; (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&#39;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&#39;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&#39;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&amp;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&#39;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&#39;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 &lt;= 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&#39;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&#39;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&#39;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&#39;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&#39;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&#39;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&#39;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&#39;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&#39;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&#39;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&#39;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&#39;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&#39; 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&#39; 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&#39;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&#39;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&#39;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&#39;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&#39;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&#39;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&amp;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&#39;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&amp;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&amp;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&amp;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”&#39;  
               
               
                   
                 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&#39;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&#39;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&#39;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&#39;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&#39;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&#39;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&#39;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.