# Supply Chain Management Maturity and Business Performance: The Balanced Scorecard Perspective
## 2 Models of Supply Chain Management Maturity
It is stated that different dimensions can be at different maturity levels, and overall maturity is determined based on the level at which most dimensions are placed [12]. The empirical research conducted in this paper is based on the SCPM3 model. The SCPM3 model was developed on and is grounded in the global data of hundreds of companies across many industries [22]. The SCPM3 model presents the evolution of SCM maturity through five levels: Foundation, Structure, Vision, Integration, and Dynamics. These levels are described in the following paragraphs. The lowest level of the SCPM3 model is Foundation, which includes the establishment of a base for the main processes [22]. This level aims to stabilize and document processes to avoid improvisation. The key business partners are identified, and best practices for order management are implemented, with both processes respecting capacity and customers' needs. The level of process flexibility with which to meet special customer needs is relatively low, requiring alternative resources and creating additional costs. Process changes are slow and hard to implement. Delivery control and delivery performance are not satisfactory. Demand forecasting is inadequate; sales insufficiently consider production capacity and inventory due to the lack of integration among main business functions. Order, distribution, and procurement are not properly documented. The company insufficiently controls and improperly documents omissions. The information system does not support all supply chain processes. Product and service suppliers are not considered strategic partners, and the \"service level with suppliers is not appropriately agreed, understood and documented\" [22], p. 209. The second level of the SCPM3 model is Structure, which refers to structuring the main business processes, namely, demand management, production planning/scheduling, and distribution management [22]. Processes are documented and initiated such that they are better planned and controlled by specific metrics, and process changes are evaluated before implementation. Business functions start to coordinate the development of production plans (planning and scheduling), considering production capacity, demand management, and forecasting (based on previous orders and customer information). Demand forecasting and distribution planning use mathematical and statistical methods. The reliability of forecasting is higher due to regular updates and is the basis for the development of commitments to customers. Distribution is facilitated with measures, control, practices of automatic replenishment, and incentive rewards for participants. \"Information systems start to support the operations and integrate with organizational processes\" [22], p. 209. The third level of SCPM3 Is Vision, wherein the company starts to adopt a broader SCM perspective in its business strategy [22]. Process owners (managers) and/or teams are identified and become responsible for managing the processes and their performance. The owners (managers) are set for the main processes (order commitment, supply chain network planning, demand planning, procurement, and operations). Two main teams are formed: the procurement and strategic planning teams. The procurement team members consider a strategic aspect of collaboration to facilitate the needs of marketing and operations and meet regularly with marketing and operation representatives. The strategic planning team (which consists of representatives from marketing, sales, operations, and logistics) meets periodically to deal with operative strategic planning issues and uses appropriate strategic tools to assess planned changes before they are implemented. Operative strategies and their adjustments are documented. The fourth level of SCPM3 is Integration, wherein the company collaborates with its suppliers in the supply chain. This level has three main elements: customer integration, supply network management, and strategic behavior based on partnership [22].