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Representative POMs are described for Order and Fulfilment Management at each level of maturity.

1Initial

• Practice

  Rely on the best endeavours of available personnel

  Outcome

  There are frequent stockouts (when demand or requirement for an item cannot be fulfilled from the current inventory) or excess capacity; poor order visibility.

  Metric

  Historical analysis: %stockouts, stockout ratio (if data exists).

2Basic

• Practice

  Implement basic processes for ordering/progressing/delivery/payment/reviewing).

  Outcomes

  • There are reduced operational costs of handling IT suppliers.
  • There is increased availability of product/services from IT suppliers.
  • There is improved consistency in treatment of IT suppliers.

  Metrics

  • Historical analysis: product/service availability.
  • # unexpected price changes.
  • % IT contracts following stated process.

• Practice

  Maintain high level of excess stock to prevent risk of stockouts(when demand or requirement for an item cannot be fulfilled from the current inventory).

  Outcome

  There are only a few stockouts.

  Metric

  Historical analysis: availability, inventory costs.

• Practice

  Estimate deliveries based on typical supplier lead times.

  Outcome

  There is minimal order visibility.

  Metric

  Cf: Estimated delivery vs actual delivery.

3Intermediate

• Practice

  Implement formal order management process, with departmental-level controls and prioritization.

  Outcome

  There are reduced inefficiencies from the formal process (vs ad hoc approach).

  Metrics

  • % contracts covered by formal order management process.
  • Cost of managing IT contract as % of value of contract.

• Practice

  Implement preferential supply and delivery agreements with all key IT suppliers.

  Outcome

  Orders are fulfilled on an efficient basis.

  Metric

  Historical analysis: availability.

• Practice

  Implement formal process to continually update delivery estimates based on regular updates from IT suppliers.

  Outcome

  The IT function is better able to manage business expectations.

  Metric

  Historical analysis: actual vs estimated delivery, inventory levels.

• Practice

  Implement formal process to continually provide order updates to IT suppliers based on updates from the rest of the business.

  Outcome

  Orders closely match business expectations.

  Metric

  Historical Analysis: Business order fulfilment.

4Advanced

• Practice

  Assign order management prioritization at an organization-level.

  Outcome

  There is an improved focus on shared objectives rather than departmental objectives.

  Metric

  % departments adopting organization-level order management prioritization.

• Practice

  Agree prioritized preferential supply with IT suppliers.

  Outcome

  There is prioritization for scarce supplies over other potential customers.

  Metric

  % key IT suppliers with prioritized preferential supply clauses.

• Practice

  Obtain actual delivery schedules from supplier in nearly all cases.

  Outcome

  Accurate delivery schedules are in place.

  Metric

  Historical analysis: Actual vs Estimated delivery, Inventory levels.

• Practice

  Instigate process to obtain accurate business forecast orders and update suppliers accordingly.

  Outcome

  There is an improved perception of IT suppliers.

  Metric

  Historical analysis: IT supplier satisfaction, actual business orders vs estimated business orders.

5Optimized

• Practice

  Prioritize orders at a business ecosystem level (i.e. across the IT supply chain)

  Outcome

  There is an increased focus on collaboration and shared objectives.

  Metric

  % key IT suppliers collaborating with IT and the rest of the business.

• Practice

  Draw-down against guaranteed stock from key IT suppliers, as and when required.

  Outcome

  There is the ability to draw-down stock on request within defined limits

  Metric

  Historical analysis: availability, inventory cost.

• Practice

  Manage orders based on real-time visibility of delivery schedules from IT suppliers.

  Outcome

  Accurate delivery schedules are in place.

  Metric

  Historical analysis: estimated vs actual delivery, inventory costs, % IT suppliers with real-time visibility.

• Practice

  Provide accurate updates from the rest of the business to IT suppliers in real-time.

  Outcome

  There is improved alignment with business expectations and improved IT supplier perception.

  Metric

  Feedback on satisfaction levels from business and IT supplliers