Assessment of supply chain readiness for transformation

In the era of accelerated change and increased competitiveness, readiness for transformation of supply chains is an important factor for their success. Understanding the significance of different improvement areas in the supply chain and the interactions among these areas is critical for successful transformation. This paper proposes a framework to assess supply chain readiness for transformation. The proposed framework consists of five main steps: identification, measurement, prioritisation, testing and implementation, and monitoring and control. The readiness factors are divided into two main categories: leading indicators (supplier, people, process, technology, leadership, and environment) and lagging indicators (customer and financial). The proposed framework is elucidated with an illustration and a case study from a high-end server manufacturing supply chain. Simulation-based analysis is conducted to test the improvement strategies before their implementation.