A survey of 100 supply chain, logistics, and operations executives found: - Nearly half used consigned vendor managed inventory located at the buyer's site. - Visibility into inventory levels was limited, with a third reporting average to no visibility. - Most shared inventory information through ERP systems or manually rather than integrated systems. - Only a third felt their inventory levels optimized costs and service levels.

1. Summary Results • 2015
Vendor Managed Inventory Strategies

2. Summary Results • 2015
Program Overview
 Between February and March of 2015, Gatepoint Research invited selected
supply chain, logistics and operations executives to participate in a survey
theme around Vendor Managed Inventory Strategies.
 Candidates were invited via email and 100 executives participated.
 Management levels represented were predominantly senior decision makers:
6% held the title CxO, 45% were VPs, 47% were Directors, and 2% were
Managers.
 Survey participants represented firms from a wide range of industries
including General and High Tech Manufacturing, Retail, and Wholesale Trade.
 Responders worked for firms with a wide range of revenue levels: 73% were
from FORTUNE 1000 companies, another 20% work for companies in the
$500 million ‐ $1.5 million revenue range. 4% were from companies $250
million to $500 million; 3% work for companies with under $250 million in
revenue.
 100% of responders participated voluntarily; none were engaged using
telemarketing.

3. Summary Results • 2015
Observations and Conclusions
 Vendor Managed Inventory (VMI) is not in use at all by 28% of survey
respondents.
 Using VMI on both buy‐side and sell‐side is relatively rare. Only 27% of those
surveyed report this capability; most (51%) apply VMI only on the buy side.
 A third of respondents rated their visibility levels between “average” and
“none.” “Great” visibility into current inventory levels is only claimed by 26% of
respondents.
 Only 21% report B2B integration between inventory systems. Inventory
information‐sharing between partners is usually limited to ERP or manual
methods.
 33% of those surveyed felt their inventory management system achieved
optimum cost and service levels.
 59% report inventory turns are only on par or worse than industry averages.
 There’s demand for better inventory management collaboration. Among those
surveyed, 31% reported collaborating “poorly” or “not very well” with trading
partners.

4. Summary Results • 2015
Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
What types of Vendor Managed Inventory (VMI)
are you currently using or planning to use?
Almost half of respondents report their VMI strategy as “consigned
inventory at buyer’s VMI location.” 28% had no VMI at all.
49%
30%
18%
16%
6%
6%
4%
0% 10% 20% 30% 40% 50% 60%
Consigned inventory
at buyer’s VMI location
VMI at third‐party
logistics provider hub
Unallocated inventory stock
at supplier “virtual” hubs
None and no plans to implement
None, but planning to implement
in 6‐12 months
None, but early stages investigating
options 0‐6 months
Other

5. Summary Results • 2015
Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
Where in your supply chain do you employ VMI programs?
Buy-side VMI programs outnumber sell-side programs
more than two to one. Only 27% employ both.
Buy-side with
suppliers
51%
Sell-side with
fulfillment partners
(distributors,
retailers, etc)
22%
Both
27%

6. Summary Results • 2015
Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
How do you rate the visibility into your current inventory levels?
33% of survey respondents had none-to-average visibility
into their current inventory levels.
4%
9%
20%
32%
26%
0% 5% 10% 15% 20% 25% 30% 35%
1
2
3
4
5
NO VISIBILITY
GREAT VISIBILITY

7. Summary Results • 2015
Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
How do you and your partners share inventory information?
Reliance on ERP systems or manual communication to share inventory
information with partners is typical. Just 21% have moved up to B2B
integration between systems.
45%
44%
21%
14%
5%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Directly via our ERP system
Manually – email, fax, etc.
B2B integration between
inventory systems
VAN or other data network
Other

8. Summary Results • 2015
Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
For these types of information, how timely is the information
that you and your partners share?
While 53% can share order information on a daily basis (or faster),
two thirds can’t share daily forecast info.
34%
48%
53%
0%
10%
20%
30%
40%
50%
60%
Forecast Inventory Order Information
Daily batch (or faster)

9. Summary Results • 2015
Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
Assess your ability to manage inventory levels.
A range of inventory level problems were reported…only 33% felt that
inventory levels reflected optimized cost and service levels.
36%
33%
29%
20%
20%
13%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Too much cash tied up
in inventory
Costs and service levels
are optimized
Too much excess and/or
obsolete inventory
Effective but too costly
No frequent stock‐outs
and/or low service levels
Don’t know

10. Summary Results • 2015
Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
How do your inventory turns compare with your industry average?
For most respondents, inventory turns are only “on par”
or “worse” than industry averages.
On par
48%
Better
24%
Don’t know
17%
Worse
11%

11. Summary Results • 2015
Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
How well do you collaborate with trading partners
on inventory management processes?
31% report below-average collaboration results with trading partners.
12%
47%
26%
5%
9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Very well Well Not very well Poorly Don’t know

12. Summary Results • 2015
Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
Profile of Respondents:
Industry Sectors
Together, retail /wholesale trade and manufacturing (high tech and general)
comprise 83% of respondents.
Mfg - General
28%
Mfg - High Tech
28%
Retail Trade
16%
Wholesale Trade
11%
Other 4%
Mfg - Primary
4%
Mining
3%
Telecom Services
3%
Business
Services
1%
Financial
Services
1%
Healthcare
1%

13. Summary Results • 2015
Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
Profile of Respondents:
Revenue
Almost three-quarters of survey respondents work for FORTUNE 1000 companies.
<$250 million
3%
$250 - 500
million
4%
$500 million -
$1.5 billion
20%
>$1.5billion
73%

14. Summary Results • 2015
Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
Profile of Respondents:
Job Level
92% of those surveyed were senior management.
Manager
2%
Director
47%
VP
45%
CxO
6%

15. Summary Results • 2015
E2open is a leading provider of cloud-based, on-demand software solutions
enabling enterprises to procure, manufacture, sell, and distribute products
more efficiently through collaborative planning and execution across global
trading networks. Enterprises use E2open solutions to gain visibility into and
control over their trading networks through the real-time information,
integrated business processes, and advanced analytics that E2open provides.
E2open is headquartered in Foster City, California, with operations worldwide.