Supply Chain Centers of Excellence Study - Summary Charts - 2014 - 2015

Supply Chain Insights LLC Copyright © 2015, p. 1

Supply Chain Centers of Excellence Study

Summary ChartsOctober 2014 – March 2015


Agenda

Study Overview

Have a Center of Excellence

No Center of Excellence

Supply Chain Network Design

Alignment and Organization


Study Overview


Most Respondents Are Manufacturers in Process orDiscrete Industries, with $7B in Revenue on Average


Top Industries for Respondents Include ConsumerPackaged Goods, Food & Beverage and Chemical


The Majority of Respondents Work in a Supply Chain Role,Primarily at the Director or Manager Levels


Over Half of Respondents Have a Supply Chain Center of Excellence


Two-Fifths Have Both a Supply Chain Center of Excellenceand a Supply Chain Network Design Group


Agenda

Study Overview






Those With a Center of Excellence Stand Out for HavingHigher Revenue, a Network Design Group and a

Self-Reported Agile Supply Chain


Those With a Center of Excellence Stand Out for HavingHigher Revenue


Respondents Have an Average of Two Centers of Excellenceand Have Had Any for an Average of Four Years


Nearly Half Rate Their Primary Center of Excellenceas Effective


Sample Responses to Why Supply Chain Center of Excellence Is “Effective”


Sample Responses to Why Supply Chain Center of Excellence Is NOT “Effective”


Sample Responses to What “Success” Meansfor Supply Chain Centers of Excellence


Those with a Center of Excellence Report 19 Full-TimeEmployees and 2 Part-Time Employees Working in it


Half Outsource Any of Their Center of Excellence Work;the Work Is Evenly Push vs. Pull


The Leader of the Center of Excellence Primarily Reportsto the Supply Chain Leader, While the Supply Chain Leader

Primarily Reports to the CEO/President or COO


Nearly Half Report That with Their Center of Excellence,Divisions Have the Power and Most Are Centralized


The Prescriptive Approach Is the Most Commonfor Supply Chain Centers of Excellence


Primary Areas for Center of Excellence Audits IncludeSupply and Demand Planning Maturity


Most Important and Top Performing Element of Centers of Excellence: Executive Support


Greatest Gaps in Center of Excellence Performance:Talent Management and Data Mining


Those with a Center of Excellence Report Higher PerformanceThan Those without on Metrics Modeling, Network Design

and Executive Support


Top Three Challenges for Centers of Excellence IncludeCross-Functional Alignment, Executive Team Understanding

and Change Management


Agenda

Study Overview






Of Those without a Center of Excellence, One-Tenth HadOne in the Past and Nearly Half Expect One in the Future


Sample Responses to Why Do NOT Have a Supply Chain Center of Excellence


Sample Responses to Why PLANNING to Have a Supply Chain Center of Excellence


Most Important and Top Performing Elements of a Center of Excellence for Those without One:

Executive Support and Demand Planning Oversight


Greatest Gaps in Areas for Those without a Center ofExcellence: Supply Chain Innovations and Network Design


Agenda

Study Overview






Over Half Have a Supply Chain Network Design Group


Those with a Network Design Group Are More Likely toHave Higher Revenue, a Center of Excellence and a

Self-Reported Agile Supply Chain


On Average, Seven People Work in Network Design, with 84% of the Work Done In-House


Primary Drivers of Having Network Design Are Cost,Transportation, and Distribution/Inventory


Sourcing/Manufacturing and Distribution FacilityFootprint Are Top Work Areas for Network Design


Top Opportunities for Improvement Lie inCost to Serve and Inventory Optimization


Agenda

Study Overview






Top Team Alignment Reported for Sales & Marketing, Manufacturing & Procurement, and Finance & Operations


Those with a Center of Excellence Report Higher AlignmentEspecially for Operations – with Finance, CSR & IT


Those with a Network Design Group Report Higher AlignmentEspecially for Marketing & Finance


Top Supply Chain Challenges Include Being Reactive,Tactical, Inside-Out and Fixed/Not Agile


Those with a Center of Excellence Report Being More Strategic, Proactive, Aligned and Outside-In


Those with a Center of Excellence or Network Design GroupDescribe Their Supply Chains More Positively


Those with a Network Design Group Report Being More Proactive, Aligned and Strategic – But Less “Many”


One-Quarter Report That Their Supply Chain Is “Agile”


Those with a Center of Excellence Report HigherSupply Chain Agility


Those with a Network Design Group Report HigherSupply Chain Agility


Those with Higher Revenue Report HigherSupply Chain Agility

Supply Chain Centers of Excellence Study - Summary Charts - 2014 - 2015

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