Supply Chain Edge: Building a Better Supply Chain Survey Results

© 2013-2014 Supply Chain Edge LLC. All rights reserved.© 2013-2014 Supply Chain Edge LLC. All rights reserved. 1

Building a Better Supply ChainExploring the Results of SCE’s SMB Survey

December 2013

© 2013-2014 Supply Chain Edge LLC. All rights reserved.

Building a Better Supply ChainIntroduction

– The supply chain is a vital part of every manufacturing and distribution company.

– Having robust supply chain capabilities is vital to operating on a global scale and effectively managing the complexities that come with sourcing and selling around the world.

– Research by Supply Chain Edge sheds light on the state of SMBs’ supply chain capabilities and identifies areas in which companies are excelling and struggling.

– Nearly 80 executives from small and midsize companies participated in an online survey July‐October


18%

18%

15%12%

8%

29%

�Less than $50 million

�$50 million‐$100million



�$500 million‐$1billion

�More than $1 billion

5%4%

27%

20%4%

10%

30%

�Aerospace/Defense

Automotive

�Consumer Products

�Industrial Products

Technology

�Health/Beauty Care

�Other

Building a Better Supply ChainRespondents

Company Size and Industry



14%

18%

6%

62%

President/CEO

Vice president/directorof supply chain

Vice president/directorof operations

Other

Respondent Titles


19%

40%

43%

48%

52%

55%

61%

100%

0% 20% 40% 60% 80% 100% 120%

Africa

Australia/Oceania

Eastern Europe

South America

Central America

Western Europe

Asia

North America

Participants Selling To: Participants Sourcing From:

6%

9%

23%

24%

30%

48%

77%

95%

0% 20% 40% 60% 80% 100%

Africa

Australia/Oceania

Central America

South America

Eastern Europe

Western Europe

Asia

North America


A Global Focus



Key Challenges to Growth

9%

9%

10%

12%

13%

15%

21%

22%

25%

30%

36%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Develop relevant/effective business strategiesIdentify risks and impacts

Overcome stronger competitorsAddress regulations/government constraints

Keep pace with technological changesFind the right people

Streamline business processes/operationsFind growth in new markets

Reduce/control operational costsMaintain high customer service/responsivenessBring products to market quickly/cost‐effectively


Building a Better Supply ChainSupply Chain Success Factors

*Average rating of respondents’ agreement with each statement, using a 1-7 scale with 1=strongly disagree and 7=strongly agree.

3.59

3.94

4.08

4.26

4.29

4.44

4.61

4.68

4.89

4.97

5.08

0 1 2 3 4 5 6

Advanced demand forecasting capabilities

Processes to recruit and develop skills

Comprehensive, current risk management plan

Data to give accurate view of supply chain health

Technologies to make fact‐based business decisions

Metrics to evaluate impact on financial performance

Board knows value of supply chain

Senior leaders know impact on ROIC, ROA, cash‐to‐cash

Customer responsiveness at acceptable cost to serve

Supply chain supports company mission

Supply chain strategy aligned with company strategy


8

Our supply chain strategy is tightly aligned with our overall company strategy:

Our supply chain function supports our company’s mission:


0% 10% 20% 30% 40%

1 ‐ not well at all

2

3

4

5

6

7 ‐ extremely well

0%

0%

2%

27%

38%

24%

6%

0% 5% 10% 15% 20% 25% 30%

1 ‐ strongly disagree

2

3

4

5

6

7 ‐ strongly agree

0%

6%

0%

27%

28%

25%

14%

Ensure tight alignment between the supply chain and company mission and strategy


9

Our supply chain enables us to be highly responsive to customer needs while maintaining an acceptable cost to serve.


0% 5% 10% 15% 20% 25% 30% 35% 40%


2

3

4

5

6


0%

5%

9%

20%

36%

17%

12%

Enhance responsiveness to customers while maintaining acceptable cost to serve


10

How well our company manages its inventory and physical assets, and continually improves order cycle time.


29.0%49.0%

52.0%

44.0%

18.0%7.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Manage its inventory and physicalassets?

Continually improve order cycle time?

Excellent

Good

Fair

Poor

Enhance responsiveness to customers while maintaining acceptable cost to serve


11

Our senior leadership team has a good understanding of the supply chain’s impact on ROIC, ROA and cash-to-cash cycle time:

Our company’s board members have a good understanding of the importance and contributions of our company’s supply chain operations:


0% 5% 10% 15% 20% 25% 30%


2

3

4

5

6


5%

8%

13%

16%

21%

27%

10%

0% 5% 10% 15% 20% 25% 30%


2

3

4

5

6


2%

6%

14%

21%

27%

17%

13%

Ensure board and senior executives understand supply chain’s contribution


We have and regularly use a set of metrics to comprehensively evaluate the supply chain’s impact on the company’s overall financial performance.


We generate and collect the full range of operational and financial data to give us an accurate view of the health of our supply chain operation.

0% 5% 10% 15% 20% 25% 30%


2

3

4

5

6


2%

11%

13%

23%

26%

19%

6%

0% 5% 10% 15% 20% 25%


2

3

4

5

6


2%

11%

23%

18%

24%

16%

6%

Use metrics to evaluate supply chain impact on enterprise financial performance


13

We have the necessary technologies and tools in place for making solid, fact-based business decisions.


0% 5% 10% 15% 20% 25% 30%


2

3

4

5

6


2%

14%

9%

30%

24%

14%

6%

Deploy technologies that enable you to make more accurate, fact‐based decisions


14

We have a comprehensive, up-to-date plan that helps us manage supply chain risk.


0% 5% 10% 15% 20% 25% 30%


2

3

4

5

6


3%

14%

16%

25%

27%

8%

6%

Ensure you have an appropriate plan for managing supply chain risk


15

Which of the following best describes the overall talent base in your supply chain organization?

We have formal and effective processes for recruiting and developing key supply chain skills:


0% 10% 20% 30% 40%


2

3

4

5

6


2%

17%

14%

36%

17%

8%

5% 7%

57%

31%

5%Mostly or all “A” players

A mix of “A” and “B” players

Mostly or all “B” players

Generally “C” players or below

Strengthen the key supply chain skills your company needs to be successful


16

The extent to which our supply chain organization uses 3PLs or similar firms:


21%

34%

33%

11%

Great extent

Moderate extent

Minor extent

Not at all

Strengthen the key supply chain skills your company needs to be successful


17

We have advanced systems and processes in place that enable us to create highly accurate demand forecasts for which people are held accountable.


0% 5% 10% 15% 20% 25%


2

3

4

5

6


8%

22%

21%

19%

16%

11%

3%

Implement sophisticated demand forecasting capabilities


18

Contact Information

Joe BradySenior Partner

[email protected]

Supply Chain Edge: Building a Better Supply Chain Survey Results

Business

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