Your SlideShare is downloading. ×
Supply Chain Visibility in Business Networks - Summary Charts - 11 MAR 2014
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Supply Chain Visibility in Business Networks - Summary Charts - 11 MAR 2014

2,595
views

Published on

Executive Summary …

Executive Summary
Teams claim that they are building end-to-end supply chain processes; but we do not find that this is true. Despite the growing need to automate the extended supply chain, the focus of most companies is on enterprise automation. The process flows of the extended supply chain are dependent on spreadsheets and Electronic Data Interchange (EDI). It is not sufficient.
Companies want better supply chain visibility. The gaps in current supply chain capabilities are large. While EDI is effective in moving transactional data, it is point to point lacking community interaction.
Companies are seeking new and deeper forms of supply chain visibility through business networks. It takes many forms. It is foundational to deliver on the promise of agility. They want to be more agile and the current IT architectures are not meeting this need.
High level survey findings are:
• Outsourcing is a Reality. It is here to Stay. For the average company, outsourcing of manufacturing and transportation is a reality. In the study, approximately ninety percent of respondents report having some level of outsourcing. Thirty percent outsource forty percent or more of their manufacturing and fifty-five percent outsource at least forty percent of their logistics on a volume basis.
• Supply Chain Visibility has Many Forms. Few are Being Delivered Well. The term supply chain visibility is a nebulous term with many meanings. There is no standard definition. In this report, we share insights on the forms of visibility and the issues with each. Visibility within the company is being addressed by current IT architectures; but B2B architectures to support emerging supply chain visibility requirements are evolving.
• The Gaps in Supply Chain Visibility are Large. The Satisfaction with EDI is high. The Confidence in ERP to Close the Gap is Low. The average company with ERP has seven different ERP instances and forty-nine percent of respondents report ERP spending plays a major role in their IT budget. However, as shown in this report, the gaps for supply chain visibility are high and the confidence that ERP implementations can close the gaps is low. As a result, the extended supply chain runs on EDI and spreadsheets. In the words of one supply chain leader that we interviewed, “Today, it is much like chewing gum, bailing wire and a shoestring.”
In this report, we give an overview of the current state of supply chain visibility--the different forms and the state of each-- and share insights on current levels of importance and performance. We then look critically at current efforts of IT investment/focus and give recommendations on how business users can work with IT teams to close these gaps.

Published in: Business

2 Comments
0 Likes
Statistics
Notes
  • Excellent
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • There's still a big gap between the manufacturing companies and the materials / transport suppliers system capability in the development markets.
    The manufacturing companies claim for receiving the materials and ship the goods only when they need. However the market demand variation and the lack of systems and focus on inventory reduction are challenges to reach it. Very good data and comparions in the total supply chain. This is a rich material.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

No Downloads
Views
Total Views
2,595
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
59
Comments
2
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Supply Chain Visibility in Business Networks Study Summary Charts 2014
  • 2. Agenda Supply Chain Insights LLC Copyright © 2014, p. 2
  • 3. Study Overview Supply Chain Insights LLC Copyright © 2014, p. 3
  • 4. Over 80% of Respondents Were Manufacturers Supply Chain Insights LLC Copyright © 2014, p. 4
  • 5. Nearly 2/3 of Respondents Worked in a “Process” Industry Supply Chain Insights LLC Copyright © 2014, p. 5
  • 6. Nine in Ten Respondents Worked in a Supply Chain Role, Especially Planning, Operations and Logistics Supply Chain Insights LLC Copyright © 2014, p. 6
  • 7. For Over 80% of Respondents, Their Supply Chain Leader Reports to the CEO, COO, President or GM Supply Chain Insights LLC Copyright © 2014, p. 7
  • 8. Agenda Supply Chain Insights LLC Copyright © 2014, p. 8
  • 9. Companies Outsource an Average of 32% of Manufacturing and 48% of Logistics Supply Chain Insights LLC Copyright © 2014, p. 9
  • 10. Top Expected Changes to Impact Supplier Network: Electronic Data Improvements & Production Capacity Constraints Supply Chain Insights LLC Copyright © 2014, p. 10
  • 11. No Difference Between Process and Non-Process Industries for Top Two Expected Changes to Impact Supplier Network Supply Chain Insights LLC Copyright © 2014, p. 11
  • 12. Top Expected Changes to Impact Logistics Network: Collaborative Logistics and Carbon Reduction Initiatives Supply Chain Insights LLC Copyright © 2014, p. 12
  • 13. No Difference Between Process and Non-Process Industries for Top Two Expected Changes to Impact Logistics Network Supply Chain Insights LLC Copyright © 2014, p. 13
  • 14. Nine in Ten Have an ERP System – 6.5 Instances on Average Supply Chain Insights LLC Copyright © 2014, p. 14
  • 15. Non-Process Industry Respondents Are More Likely to Report Having Any ERP Systems Supply Chain Insights LLC Copyright © 2014, p. 15
  • 16. Among Most Important and Top Areas of Visibility: Transaction and Supply Chain Decisions within the Company Supply Chain Insights LLC Copyright © 2014, p. 16
  • 17. Greatest Gaps in Visibility Importance vs. Performance: Inter-enterprise Order Management, 1st Tier Suppliers and Transportation & Logistics Network Supply Chain Insights LLC Copyright © 2014, p. 17
  • 18. Among Most Important Visibility for Process and Non-Process: Transportation and Logistics Network Supply Chain Insights LLC Copyright © 2014, p. 18
  • 19. Among Top Visibility for Process and Non-Process : Transactions and Supply Chain Decisions within the Company Supply Chain Insights LLC Copyright © 2014, p. 19
  • 20. Most Confidence in ERP Provider Giving Visibility: Manufacturing within the Company and Transactions & Supply Chain Decisions within the Company Supply Chain Insights LLC Copyright © 2014, p. 20
  • 21. Most Important and Top Performing on ERP Confidence Are Same for Process and Non-Process Industries Supply Chain Insights LLC Copyright © 2014, p. 21
  • 22. Greatest Gaps in ERP Confidence vs. Importance: Third-party Logistics, Transportation & Logistics, and First Tier Material Suppliers Supply Chain Insights LLC Copyright © 2014, p. 22
  • 23. Highest Performance and ERP Confidence: Manufacturing and Transactions within Company Supply Chain Insights LLC Copyright © 2014, p. 23
  • 24. Supply Chain Visibility Infographic Supply Chain Insights LLC Copyright © 2014, p. 24
  • 25. Agenda Supply Chain Insights LLC Copyright © 2014, p. 25
  • 26. Top Definition of IT Organization’s Role: Keeping IT Systems Safe and Secure Supply Chain Insights LLC Copyright © 2014, p. 26
  • 27. Process Industries Are More Likely to See Role of IT as Driving Innovation; Non-Process Industries Are More Likely to Say Maintenance of Reference Data Supply Chain Insights LLC Copyright © 2014, p. 27
  • 28. Half Report and IT and Supply Chain Jointly Decide on Supply Chain Technology Funding Supply Chain Insights LLC Copyright © 2014, p. 28
  • 29. Two-in-Five Report IT Projects Meet Line-of-Business Objectives Supply Chain Insights LLC Copyright © 2014, p. 29
  • 30. Those in Process Industries Are Somewhat More Likely to Report IT Projects Meet Line-of-Business Objectives Supply Chain Insights LLC Copyright © 2014, p. 30
  • 31. One-Third Report Being More Likely to Pick Technology Based on the Vendor Over the Functionality Supply Chain Insights LLC Copyright © 2014, p. 31
  • 32. Nearly Half Report ERP Spending Played Major Role in 2013 IT Budget Supply Chain Insights LLC Copyright © 2014, p. 32
  • 33. Where Best Able to Meet Business Requirements: Order Execution, Manufacturing and Transactional Efficiency Supply Chain Insights LLC Copyright © 2014, p. 33
  • 34. Process Industries Better Able Than Non-Process to Meet Requirements for Supply Planning Supply Chain Insights LLC Copyright © 2014, p. 34
  • 35. Agenda Supply Chain Insights LLC Copyright © 2014, p. 35
  • 36. Most Common B2B Solutions: EDI/XML, Phone/Email/Fax/Postal and Spreadsheets Supply Chain Insights LLC Copyright © 2014, p. 36
  • 37. EDI/XML Among Most Common Solution for Process and Non-Process Industries Supply Chain Insights LLC Copyright © 2014, p. 37
  • 38. Most Important and Top Performing B2B Solution: Electronic Data Interchange Supply Chain Insights LLC Copyright © 2014, p. 38
  • 39. Greatest Gaps in B2B Solution Importance vs. Performance: Phone/Email/Fax/Postal and Spreadsheets Supply Chain Insights LLC Copyright © 2014, p. 39
  • 40. Agenda Supply Chain Insights LLC Copyright © 2014, p. 40
  • 41. Just Over One Quarter Use the Most Mature Definition of Agility Supply Chain Insights LLC Copyright © 2014, p. 41
  • 42. While Nearly All Believe Supply Chain Agility Is Important, Only 38% Report Their Own Supply Chain Is Agile Supply Chain Insights LLC Copyright © 2014, p. 42
  • 43. Those in Process Industries Rate Themselves Somewhat Higher on Supply Chain Agility Supply Chain Insights LLC Copyright © 2014, p. 43
  • 44. 83% Believe Their IT Strategy Is Important to the Delivery of Agility within the Company Supply Chain Insights LLC Copyright © 2014, p. 44
  • 45. Most Common Effort to Improve Agility via IT: Electronic Data Interchange Supply Chain Insights LLC Copyright © 2014, p. 45
  • 46. Top Effort to Improve Agility Is Same for Process and Non-Process Industries Supply Chain Insights LLC Copyright © 2014, p. 46