Source processes follow a similar path to Plan. At level 1, there are few formal processes and relationships with suppliers are ad hoc. There is little ability to aggregate data across the firm, so sourcing decisions are suboptimal. At level 2, we find tools that allow the firm to build up a consolidated view of total demand the best deals can be made, but from a traditional buyer-seller relationship. Across the wall to level 3, we see the development of well-defined supplier partnerships, with shared goals for driving and sharing extra value. Suppliers are integrated into the planning process and are probably involved much earlier in the design process, for noncommodity items. By level 4, firms will have adopted e-sourcing tools for commodity items, allowing them to search a much wider Internet community for the best supply opportunities. More and more of the procurement processes will be automated and linked into the scheduling systems on both sides and to back-office reconciliation and payment systems. The level 5 aspiration is for the whole network to co-manage sourcing strategy to maximize the value to all the players in the chain.

The Make processes at level 1 are often as rudimentary as the planning processes that feed them their instructions. Paper-based or simple MRP-based tools track the manufacture of products, relying on progress chasing to maintain due date performance. At level 2, tracking is electronic, and linked into the scheduling system, so that the...