Supply Chain Edge: Building a Better Supply Chain Survey Results

Building a Better Supply Chain
Exploring the Results of SCE’s SMB Survey
December 2013

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

1

Introduction
– 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


Respondents
Company Size and Industry

Aerospace/Defense
Less than $50 million
5%

$50 million‐$100

18%

million

29%

4%

Automotive

30%

Consumer Products

$101 million‐$200
million
18%

27%

Industrial Products

$201 million‐$500
million

8%

$500 million‐$1
12%

billion
15%

More than $1 billion

Technology

10%
4%

Health/Beauty Care
20%

Other


Respondents
Respondent Titles

14%

President/CEO

18%

Vice president/director
of supply chain
Vice president/director
of operations

62%
6%

Other


Respondents
A Global Focus
Participants Sourcing From:

Participants Selling To:
North America

100%

Asia

20%

9%

Africa

19%
0%

23%

Australia/Oceania

40%

Africa

24%

Central America

43%

Australia/Oceania

30%

South America

48%

Eastern Europe

48%

Eastern Europe

52%

South America

77%

Western Europe

55%

Central America

95%

Asia

61%

Western Europe

North America

40%

60%

80%

100%

120%

6%
0%

20%


40%

60%

80%

100%

Respondents
Key Challenges to Growth
Bring products to market quickly/cost‐effectively
Maintain high customer service/responsiveness
Reduce/control operational costs
Find growth in new markets
Streamline business processes/operations
Find the right people
Keep pace with technological changes
Address regulations/government constraints
Overcome stronger competitors
Identify risks and impacts
Develop relevant/effective business strategies

36%
30%
25%
22%
21%
15%
13%
12%
10%
9%
9%
0%

5%

10%

15%

20%


25%

30%

35%

40%

Supply Chain Success Factors
Supply chain strategy aligned with company strategy

5.08

Supply chain supports company mission

4.97

Customer responsiveness at acceptable cost to serve

4.89

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

4.68

Board knows value of supply chain

4.61

Metrics to evaluate impact on financial performance

4.44

Technologies to make fact‐based business decisions

4.29

Data to give accurate view of supply chain health

4.26

Comprehensive, current risk management plan

4.08

Processes to recruit and develop skills

3.94

Advanced demand forecasting capabilities

3.59
0

1

2

3

4

5

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


6

8

Ensure tight alignment between the supply chain and company mission and strategy
Our supply chain function supports our
company’s mission:

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

6%

7 ‐ extremely well

24%

6

27%

4

25%

6
38%

5

28%

5

27%

4

2%

3

14%

7 ‐ strongly agree

0%

3

2

0%

2

1 ‐ not well at all

0%

1 ‐ strongly disagree

0%

10%

20%

30%

40%

6%
0%
0%

5%

10%


15%

20%

25%

30%

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

12%


17%

6

36%

5
20%

4
9%

3
5%

2
0%

0%

5%

10%

15%

20%

25%

30%

35%

40%


9

Enhance responsiveness to customers while maintaining acceptable cost to serve
How well our company manages its inventory and physical assets, and continually improves
order cycle time.
120.0%
100.0%
18.0%

7.0%

80.0%
44.0%
60.0%

Excellent
Good

52.0%

Fair

40.0%

Poor
20.0%

49.0%
29.0%

0.0%
Manage its inventory and physical
assets?

Continually improve order cycle time?


10

11

Ensure board and senior executives understand supply chain’s contribution
Our company’s board members have a good
understanding of the importance and
contributions of our company’s supply chain
operations:
10%


27%
21%

5

10%

14%
6%

2

5%
5%

21%

3

8%

0%

27%

4

13%


17%

6
5

16%

4

2

13%


6

3

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

2%

15%

20%

25%

30%

0%

5%


10% 15% 20% 25% 30%

Use metrics to evaluate supply chain impact on enterprise financial performance
We have and regularly use a set of metrics to
comprehensively evaluate the supply chain’s
impact on the company’s overall financial
performance.
6%


26%

5

11%
2%


2%
5%

23%

2

11%

0%

18%

3

13%


24%

5
4

23%

4

16%

6

19%

2

6%


6

3

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.

10%

15%

20%

25%

30%

0%

5%


10%

15%

20%

25%

Deploy technologies that enable you to make more accurate, fact‐based decisions
We have the necessary technologies and tools in place for making solid, fact-based business
decisions.

6%


14%

6

24%

5

30%

4
9%

3

14%

2
2%

0%

5%

10%

15%

20%

25%

30%


13

Ensure you have an appropriate plan for managing supply chain risk
We have a comprehensive, up-to-date plan that helps us manage supply chain risk.

6%


8%

6

27%

5

25%

4
16%

3

14%

2
3%

0%

5%

10%

15%

20%

25%

30%


14

15

Strengthen the key supply chain skills your company needs to be successful
We have formal and effective processes for
recruiting and developing key supply chain
skills:

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

5%


5% 7%

Mostly or all “A”
players

8%

6

17%

5

A mix of “A” and “B”
players

31%
36%

4

Mostly or all “B”
players

14%

3

57%

17%

2
2%

0%

10%

20%

30%

40%


Generally “C” players
or below

Strengthen the key supply chain skills your company needs to be successful
The extent to which our supply chain organization uses 3PLs or similar firms:

11%

21%
Great extent
Moderate extent
Minor extent

33%

Not at all
34%


16

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

3%


11%

6

16%

5

19%

4

21%

3

22%

2
8%

0%

5%

10%

15%

20%

25%


17

18

Contact Information
Joe Brady
Senior Partner
joe.brady@supplychainedge.com
440.653.0352


Supply Chain Edge: Building a Better Supply Chain Survey Results

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