• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
PwC Global Supply Chain 2013
 

PwC Global Supply Chain 2013

on

  • 1,471 views

 

Statistics

Views

Total Views
1,471
Views on SlideShare
1,435
Embed Views
36

Actions

Likes
5
Downloads
0
Comments
0

1 Embed 36

http://lms.etracc.net 36

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    PwC Global Supply Chain 2013 PwC Global Supply Chain 2013 Presentation Transcript

    • Next-generationsupply chainsEfficient, fast andtailoredKey findings fromPwC’s Global SupplyChain Survey 2013www.pwc.com/GlobalSupplyChainSurvey2013
    • This year’s survey – its ninth year running – attracted thelargest population everSlide 2Company sizeGeographic distributionAsia22%Americas30%Europe48%> USD 5 B30%USD 1 B – USD 5 B25%< USD 1 B45%Seniority levelNon Management22%CXO34%Management44%Industry affiliationIndustrial ProductsAutomotiveOther28%20%15%12%8%8%Pharmaceuticals andLife Sciences9%Technology and TelecomRetail andConsumer GoodsChemicals/ProcessStudy population characteristics• 503 completed questionnaires, surveyed fromMay to July 2012• Wide range of industries• All three global regions are well represented• The participants represent a balanced mix ofcompany sizes• More than half of the participants are seniorexecutivesPwC’s Global Supply Chain Survey 2013
    • Our report identifies six key traits of highly effective supplychain managersLeaders focus on best-in-class delivery, costand flexibilityto meet increasinglydemanding customerrequirementsInterest in next-generationtechnologies andsustainablesupply chains isgrowingYou can have it all:companies thatacknowledge supplychain as a strategicasset achieve 70%higher performanceLeaders in matureand emergingmarkets investmore heavily indifferentiatingsupply chaincapabilities2One size does notfit all: Leaderstailor their supplychains to theneeds of differentcustomer segmentsLeaders outsourceproduction anddelivery but retainglobal control ofcore strategicfunctionsSlide 3Fall 2012PwC’s Global Supply Chain Survey 201316345
    • You can have it all: companies thatacknowledge supply chain as astrategic asset achieve 70% higherperformanceFall 2012PwC’s Global Supply Chain Survey 2013Slide 4
    • 36%9%45% of the participants acknowledge that supply chainis seen as a strategic asset in their companyFall 2012PwC’s Global Supply Chain Survey 2013Slide 5Other 26%40%41%43%46%Automotive 50%56%Supply chain seen as strategic asset[% of participants]… supports the company in constantly outperforming the market… is at a disadvantage to industry peers… is at an advantage to peers… is at parity with industry peersOur supply chain…Technology andTelecomIndustrial ProductsChemicals and ProcessPharmaceuticals andLife SciencesRetail andConsumer Goods
    • There is a significant opportunity for Laggards to improveoperational performance and to follow the LeadersFall 2012PwC’s Global Supply Chain Survey 2013Slide 6Average EBITmarginAverage inventory turnsper yearAverage deliveryperformance (OTIF)+30%Leaders16%Average12%Laggards7%+87%LeadersAverageLaggards+8%Leaders96%Average89%Laggards79%Opportunity Opportunity Opportunity
    • Leaders achieve higher deliver performance whilstoperating in optimized working capital rangesFall 2012PwC’s Global Supply Chain Survey 2013Slide 7LeaderLaggardLeaderLaggardLeaderLaggardSupply chain top performersSupply chain rookies Working capital optimisersDelivery heroesInventory turns (#)Deliveryperformance(%)>98%< 75%1 >201595%LeaderLaggardLeaderLaggardLeaderLaggardLeaderLaggard% of Laggards% of Leaders18%1%53%0%3% 3%
    • Leaders focus on best-in-classdelivery, cost and flexibility tomeet increasingly demandingcustomer requirementsSlide 8Fall 2012PwC’s Global Supply Chain Survey 2013
    • Reducing supply chain costs and meeting customerrequirements are key supply chain priorities todayand in futureFall 2012PwC’s Global Supply Chain Survey 2013Slide 9Responding to changing regulatory requirements 3642466158Responding to competitive pressures64Meeting increasing customer requirements 698079Supporting demand growth in emerging markets 525260Significant1 supply chain trendsin 2013 [%]In 2013-20152[%]% increase by2015 vs. 2013(+10%)(+6%)(+14%)(+14%)(+18%)(+15%)(+19%)(+26%)(+19%)(+31%)(+34%)(+12%)Top 4 Supply Chain trendsRemaining Supply Chain trendsImportance increase by≥ 20%10% and < 20%≤ 10%Note1) % participants who judge trend as critical or significant in 2013.2) % participants who say that trend is significant, critical or moderate in 2013 and who think thatimportance will increase by 2015 or who have indicated critical or significant for 2013 andindicate that it will stay same for the next 2 yearsImplementing techniques to automateand increase transparencyManaging profitability of total supply chainReducing total supply chain costPreparing supply chain for up/downwards volume flexibilityAcquiring and developing supply chain talent and skillsEnsuring supply and supplier performanceMaking the supply chain more sustainableManaging supply chain security and risk
    • While primary emphasis is on delivery and costperformance, Supply Chain Leaders are focused on severalother factors as wellFall 2012PwC’s Global Supply Chain Survey 2013Slide 1066%80%90%92%48%Sustainability 63%64%% of Leaders who rank the supply chainpriority as very important or importantMinimised costsMaximum delivery performanceMaximum volume flexibility and responsivenessComplexity managementMinimised risksTax optimisation/efficiency
    • Seven supply chain value drivers have been defined on thepath to supply chain value creationFall 2012PwC’s Global Supply Chain Survey 2013Slide 11SupplychainvaluedriverValuecreationPath to supply chain value creationMaximumvolumeflexibility andresponsivenessMaximumdeliveryperformanceComplexitymanagementMinimised risksSustainabilityMinimisedcostsTaxoptimisationand efficiencyActivated value drivers
    • One size does not fit all – Leaderstailor their supply chains to the needsof different customer segmentsSlide 12Fall 2012PwC’s Global Supply Chain Survey 2013
    • Leaders operate more supply chain configurations toachieve a competitive advantageFall 2012PwC’s Global Supply Chain Survey 2013Slide 13Leaders operate moresupply chainconfigurationsLeaders are more focusedthan Laggards since theyoperate in less channelsLeaders operate up to 50%more configurations perchannel than Laggards# supply chainconfigurations# channels# configurationsper channel+55%Leaders2.1Laggards1.4+40%Leaders4.3Laggards3.12.0Laggards2.3-10%Leaders
    • Technology and Telecomm industry operates the mostcomplex supply chain configurationFall 2012PwC’s Global Supply Chain Survey 2013Slide 14AutomotiveAutomotive#channels# supply chain configurations# configurations by channelTechnology and TelecomIndustrial ProductsPharmaceuticals and Life SciencesRetail and Consumer GoodsChemicals and Process Industrial ProductsPharmaceuticalsand Life SciencesRetail andConsumer GoodsChemicalsand ProcessTechnologyand Telecom
    • Visualisation slide: “One-size-fits-all” vs. differentiatedsupply chain architectureFall 2012PwC’s Global Supply Chain Survey 2013Slide 15Definition: Instead of deploying a one size fits all approach many companies use an operating model that constitutes of different Supply Chains Configurations. Each Supply Chain Configuration is optimizedand differentiated in the area plan, source, make, deliver to service specific business requirements. For instance:• An industrial manufacturer might have 2 different SC configurations: 1 for complex / high-range products and 1 for standardized / lower cost products. Each SC configuration might serve the samecustomers and might source from the same suppliers, but could use different production locations and, potentially different distribution networks.• A large retailer might have 2 different SC configurations: 1 for physical storefront and 1 for on-line shopping.• Note: Reverse Supply Chain is out of scopeMarketcharacteristicsSupply chainrequirementsSupply chainarchitectureGeography/CountryProduct/TechnologyChannel/MarketMarket/DemandDeliveryperformanceFlexibility/ResponsivenessSupply chain configuration 1Supply chain configuration 2Supply chain configuration 3One-size-fits-allsupply chain configurationDeliveryperformanceFlexibility/Responsiveness
    • Leaders outsource production anddelivery but retain global control ofcore strategic functionsSlide 16Fall 2012PwC’s Global Supply Chain Survey 2013
    • Supply chain Leaders keep core functions under globalcontrol and focus on regional executionFall 2012PwC’s Global Supply Chain Survey 2013Slide 17Execution functions24%Strategic functions54%Global RegionalLeader’sorganisational modelLeaders’ geographicorganisation100%80%60%40%20%0%Inbound and outbound logistics 18%Warehousing 20%22%Service 24%Customer order desk 24%Demand planning 34%38%S&OP 49%Supply chain centre of excellence 60%Strategic procurement 66%New product development 70%Global Regional% of global and regional functionsRegional: Regional and local functionsGlobal: Global BU (cross region and cross enterprise)Manufacturing and assemblyOperational procurementStrategic functions: Demand Planning, S&OP, Strategic Procurement, New Product Development, Supply Chain Centre of ExcellenceExecution functions: Operational Procurement, Customer Order Desk, Inbound and Outbound Logistics, Manufacturing and Assembly, Service
    • PlanSourceEnablerDeliverMakeAutomotive Chemicals / Process Consumer GoodsHealthcare / Pharma Industrial TMTTechnology and Telecomm industry operates with thehighest degree of global functionsFall 2012PwC’s Global Supply Chain Survey 2013Slide 18Demand planningS&OPStrategic procurementOperational procurementCustomer order deskWarehousingInbound and outbound logisticsManufacturing and assemblyServiceNew product developmentSupply chain centre of excellenceGeographic organisation ofsupply chain functionsLocal GlobalRegional
    • Outsourcing of supply chain Leaders focuses mainly onexecution functions and not on core functionsFall 2012PwC’s Global Supply Chain Survey 2013Slide 196%6%10%7%9%13%13%23%36%38%46%New product development 12%Service 22%Manufacturing and assembly 36%Warehousing 45%Inbound and outbound logistics 49%S&OP 2%Strategic procurement 5%Demand planning 5%Operational procurement 6%Supply chain centre of excellence 7%Customer order desk 11%100% - 100% outsourcing / 0% - 100% in-houseDecreasingoutsourcingdegreeLeaders% outsourcingLaggards% outsourcing
    • PlanSourceEnablerDeliverCustomer order deskWarehousingInbound and outbound logisticsMakeManufacturing and assemblyServiceLeader LaggardSupply chain Leaders utilise outsourcing in manufacturing& assembly and inbound & outbound logisticsFall 2012PwC’s Global Supply Chain Survey 2013Slide 20Demand planningS&OPStrategic procurementOperational procurementNew product developmentSupply chain centre of excellence% of supply chainactivities outsourced0% 5025%5%2%5%6%36%22%11%45%49%12%7%
    • Leaders in mature and emergingmarkets invest more heavily indifferentiating supply chaincapabilitiesSlide 21Fall 2012PwC’s Global Supply Chain Survey 2013
    • Emerging markets are already close to mature market’ssupply chain performanceFall 2012PwC’s Global Supply Chain Survey 2013Slide 22EBIT margin [avg.] Inventory turns [avg.]Delivery performance [avg.] Differentiating supply chaincapabilities [avg.]+22%Emerging14%Mature11%-7%EmergingMature0%Emerging44%Mature44%EmergingMature-4%86%90%7.88.4Mature Markets: United States, Europe, Middle East, JapanEmerging Markets: Latin America, India, ChinaBased on participant’s origin country
    • 51% of the Leaders focus on differentiating supply chaincapabilitiesFall 2012PwC’s Global Supply Chain Survey 2013Slide 23% leaders/laggards who perceive the capability as very important+18%LeaderLaggardPrioritisation of differentiatingsupply chain capabilities
    • Leaders focus on differentiating capabilities which providethe platform for superior performanceFall 2012PwC’s Global Supply Chain Survey 2013Slide 24Supply chain value driver Top three differentiating practices of LeadersMaximum deliveryperformance1. Collaboration with key customers on planning (e.g., effective forecasting)2. End-to-end supply chain planning and visibility3. Vendor-managed-inventory (VMI) direct-replenishment modelMinimised costs 1. Best-cost country sourcing2. Differentiated order-to-delivery time3. Differentiated service level including potential reductionMaximum volumeflexibility andresponsiveness1. Internal capacity flexibility 80%-120%2. Flexible shift models/payment structure3. Regional supply chain set-upMinimised risks 1. Multiplication of sources and sole-sourcing avoidance2. Regular review of suppliers’ financial risk and mitigation throughrisk-sharing partnerships3. Visibility and regular monitoring of main suppliers’ operational indicatorsComplexity management 1. Develop multi-skilled employees in order to cope with complexity2. Late stage product customisation3. Use of distributors and other channel partnersSustainability 1. Agreement of supply chain partners to adhere to highest ethical standards2. Responsible supply chain partner footprint and procurement framework3. Internal carbon footprint optimisation and improvementTax optimisationand efficiency1. Manufacturing and assembly optimisation (toll manufacturing)2. Localisation of inventory ownership in tax-efficient countries3. Localisation of procurement organization in tax efficient countries (e.g., Singapore,Switzerland, Cayman Islands…)
    • Interest in next-generationtechnologies and sustainable supplychains is growingSlide 25Fall 2012PwC’s Global Supply Chain Survey 2013
    • Supply chain trend: Implementing techniques to automateand increase transparencyFall 2012PwC’s Global Supply Chain Survey 2013Slide 26Pharmaceuticals andLife SciencesTechnology and TelecomChemicals and ProcessRetail and Consumer GoodsAutomotiveIndustrial545150545341High importance1 of automationin 2013 [%]Increase by20152 [%]% Increase by2015 vs. 2013(+43%)(+49%)(+38%)(+10%)(+9%)(+39%)Note1) % participants who judge trend as critical or significant in 20132) % participants who say that trend is significant, critical or moderate in 2013 and who say that importance willincrease by 2015 or who indicate critical or significant for 2013 and indicate that it will stay same for the nexttwo yearsImportance increase by≥ 20%10% and < 20%≤ 10%
    • Agreement of supply chain to adhere to highest ethical datais the most important practiceFall 2012PwC’s Global Supply Chain Survey 2013Slide 27Less importantHighly important(critical and significant)42%Return supply chain to manage recycling*Integrated risk management*Responsible footprint and procurement framework*Internal carbon footprint optimisation and improvementImportance ofsustainabilityImportant practices for sustainability adherencePeer cooperation and strategic alliances to align on targetEffective track and trace capabilitiesAgreement to adhere to highest ethical standards
    • Supply chain trend: Making the supply chain moresustainableFall 2012PwC’s Global Supply Chain Survey 2013Slide 28Pharmaceuticals andLife SciencesAutomotiveChemicals and ProcessRetail and Consumer GoodsIndustrial ProductsTechnology and Telecom505042393233High importance1 ofsustainability in 2013 [%]Increase by20152 [%]% Increase by2015 vs. 2013(+26%)(+22%)(+40%)(+38%)(+60%)(+43%)Note1) % participants who judge trend as critical or significant in 20132) % participants who say that trend is significant, critical or moderate in 2013 and who say thatimportance will increase by 2015 or who have indicated critical or significant for 2013 and indicatethat it will stay same for the next two yearsImportance increase by≥ 20%10% and < 20%≤ 10%
    • Industry dashboardsSlide 29Fall 2012PwC’s Global Supply Chain Survey 2013
    • AutomotiveFall 2012PwC’s Global Supply Chain Survey 2013Slide 30EBIT Margin [%]Inventory turns [#]Delivery performance [%]+82%Leaders10.4%Laggards5.7%+199%LeadersLaggards+24%Leaders97.3%Laggards78.7%Supply chain performance Organisational set-upLeading practicesGeographic organisationfor supply chain functionsPlanSourceMakeDeliverEnabler% of supply chainactivities outsourced0 18 36 55Outsourcing level Geographic organisationMinimised costsMaximum deliveryperformanceMaximum volume flexibilityand responsivenessComplexity managementMinimised risksSustainabilityTax optimisation/Efficency% of participants indicatingvery important or important.18.26.190%87%83%67%67%53%48%Local Regional GlobalDemand planningS&OPManufacturing and assemblyCustomer order deskNew product developmentSC centre of excellenceStrategic procurementOperational procurementServiceWarehousingInbound and outbound logisticsTop differentiating practices•Decreased manufacturing costs through reduction of waste•Inventory reduction•Best-cost country sourcing•Collaborative planning with key suppliers•Collaboration with key customers on planning and execution•Order fulfillment cycle-time reduction improve manufacturing time•Flexible shift models/payment structure•Internal capacity flexibility 80%-120%•End-to-end supply chain planning and visibility•Making to order•Automation of processes in order to cope with complexity•Assortment/inventory policies distinguished by product family andstoring location•Multiplication of sources and sole-sourcing avoidance•Visibility and regular monitoring of main suppliers’ operational indicators•Regular review of suppliers’ financial risk and mitigation throughrisk-sharing partnerships•Agreement of supply chain partners to adhere to highest ethical standards•Internal carbon footprint optimisation and improvement•Return of supply chain to manage recycling•Localisation of procurement organisation in tax-efficient countries•Intellectual property and patent royalty optimisation•Import/export optimisation (e.g., bonded warehouse)
    • Chemicals and ProcessFall 2012PwC’s Global Supply Chain Survey 2013Slide 31+29%13.5%10.5%+166%+22%97.5%80.2%Organisational set-upGeographic organisationfor supply chain functionsLocal Regional GlobalPlanSourceMakeDeliverEnabler% of supply chainactivities outsourced0 18 36 55EBIT Margin [%]Inventory turns [#]Delivery performance [%]Supply chain performance17.36.5LeadersLaggardsLeadersLaggardsLeadersLaggardsOutsourcing level Geographic organisationLeading practices Top differentiating practices•Inventory reduction•Decreased manufacturing costs through reduction of wastes•Reduction in process flow complexity•End-to-end supply chain planning and visibility•Collaboration with key customers on planning (e.g., effective forecasting)•Order fulfillment cycle-time reduction to improve information flow•Internal capacity flexibility 80%-120%•End-to-end supply chain planning and visibility•Involvement of partners for capacity reservation•Development of multiskilled employees in order to cope with complexity•Making to order•Assortment/inventory policies distinguished by product family andstoring location•Multiplication of sources and sole-sourcing avoidance•Visibility over short-term supply through order traceability,vendor-managed inventory and so on•Visibility and regular monitoring of main suppliers’ operational indicators•Responsible supply chain partner footprint and procurement framework•Integrated risk management•Agreement of supply chain partners to adhere to highest ethical standards•Transfer pricing•Localisation of procurement organisation in tax-efficient countries•Manufacturing and assembly optimisation (toll manufacturing)% of participants indicatingvery important or important.87%87%77%72%58%52%42%Demand planningS&OPManufacturing and assemblyCustomer order deskNew product developmentSC centre of excellenceStrategic procurementOperational procurementServiceWarehousingInbound and outbound logisticsMinimised costsMaximum deliveryperformanceMaximum volume flexibilityand responsivenessComplexity managementMinimised risksSustainabilityTax optimisation/Efficency
    • Retail and Consumer GoodsFall 2012PwC’s Global Supply Chain Survey 2013Slide 32+131%Leaders14.2%Laggards6.2%+461%LeadersLaggards+27%Leaders97.5%Laggards76.4%EBIT Margin [%]Inventory turns [#]Delivery performance [%]Supply chain performance18.23.3Organisational set-upLeading practicesGeographic organisationfor supply chain functionsPlanSourceMakeDeliverEnabler% of supply chainactivities outsourced0 18 36 55Outsourcing level Geographic organisation% of participants indicatingvery important or important.95%90%79%70%60%46%45%Local Regional GlobalTop differentiating practices•Collaborative planning with key suppliers•End-to-end supply chain planning and visibility•Vendor-managed-inventory direct-replenishment model•Decreased overhead costs through increased labour productiveness•Decreased manufacturing costs through reduction of wastes•Inventory reduction•Internal capacity flexibility 80%-120%•End-to-end supply chain planning and visibility•Flexible shift models/payment structure•Automation of processes in order to cope with complexity•Development of multiskilled employees in order to cope with complexity•Assortment/Inventory policies distinguished by product family andstoring location•Visibility and regular monitoring of main suppliers’ operational indicators•Multiplication of sources and sole-sourcing avoidance•Regular review of suppliers’ financial risk and mitigation throughrisk-sharing partnerships•Transfer pricing•Import/export optimisation (e.g., bonded warehouse)•Manufacturing and assembly optimisation (toll manufacturing)•Agreement of supply chain partners to adhere to highest ethical standards•Internal carbon footprint optimisation and improvement•Effective track-and-trace capabilities to ensure sustainable supply chainDemand planningS&OPManufacturing and assemblyCustomer order deskNew product developmentSC centre of excellenceStrategic procurementOperational procurementServiceWarehousingInbound and outbound logisticsMinimised costsMaximum deliveryperformanceMaximum volume flexibilityand responsivenessComplexity managementMinimised risksSustainabilityTax optimisation/Efficency
    • Pharmaceuticals and Life SciencesFall 2012PwC’s Global Supply Chain Survey 2013Slide 3311.1%+52%Leaders16.9%Laggards+326%LeadersLaggards97.4%Laggards80.5%+21%LeadersSupply chain performanceEBIT Margin [%]Inventory turns [#]Delivery performance [%]3.816.3Organisational set-upLeading practicesGeographic organisationfor supply chain functionsPlanSourceMakeDeliverEnabler% of supply chainactivities outsourced0 18 36 55Outsourcing level Geographic organisationLocal Regional GlobalTop differentiating practices•End-to-end supply chain planning and visibility•Order fulfillment cycle-time reduction improve manufacturing time•Collaborative planning with key suppliers•Decreased manufacturing costs through reduction of wastes•Inventory reduction•Decreased overhead costs through increased labour productiveness•End-to-end supply chain planning and visibility•Outsourcing to service provider•Involvement of partners for capacity reservation•Multiplication of sources and sole-sourcing avoidance•Regular review of suppliers’ financial risk and mitigation throughrisk-sharing partnerships•Visibility over short-term supply through order traceability, vendor-managedinventory and so on•Use of distributors and other channel partners•Differentiated distribution strategies•Development of multiskilled employees in order to cope with complexity•Return of supply chain to manage recycling•Responsible supply chain partner footprint and procurement framework•Integrated risk management•Import/export optimisation (e.g., bonded warehouse)•Intellectual property and patent royalty optimisation•Localisation of inventory ownership in tax-efficient countries% of participants indicatingvery important or important.Demand planningS&OPManufacturing and assemblyCustomer order deskNew product developmentSC centre of excellenceStrategic procurementOperational procurementServiceWarehousingInbound and outbound logistics100%94%78%78%72%67%53%Minimised costsMaximum deliveryperformanceMaximum volume flexibilityand responsivenessComplexity managementMinimised risksSustainabilityTax optimisation/Efficency
    • Industrial ProductsFall 2012PwC’s Global Supply Chain Survey 2013Slide 34+173%Leaders17.3%Laggards6.3%+19%Leaders92.9%Laggards77.9%+283%Laggards LeadersSupply chain performanceLeading practicesGeographic organisationfor supply chain functionsPlanSourceMakeDeliverEnabler% of supply chainactivities outsourced0 18 36 55Outsourcing level Geographic organisationLocal Regional GlobalOrganisational set-upTop differentiating practices•Collaborative planning with key suppliers•Collaboration with key customers on planning (e.g., effective forecasting)•Order fulfillment cycle-time reduction improve information flow•Decreased manufacturing costs through reduction of wastes•Inventory reduction•Decreased overhead costs through increased labour productiveness•Internal capacity flexibility 80%-120%• End-to-end supply chain planning and visibility•Regional supply chain set-up•Making to order•Late-stage product customisation•Differentiated distribution strategies•Multiplication of sources and sole-sourcing avoidance•Visibility and regular monitoring of main suppliers’ operational indicators•Regular review of suppliers’ financial risk and mitigation throughrisk-sharing partnerships•Agreement of supply chain partners to adhere to highest ethical standards•Internal carbon footprint optimisation and improvement•Responsible supply chain partner footprint and procurement framework•Localisation of procurement organisation in tax-efficient countries•Import/export optimisation•Transfer pricingEBIT Margin [%]Inventory turns [#]Delivery performance [%]12.13.2% of participants indicatingvery important or important.98%93%74%61%60%38%38%Minimised costsMaximum deliveryperformanceMaximum volume flexibilityand responsivenessComplexity managementMinimised risksSustainabilityTax optimisation/EfficencyDemand planningS&OPManufacturing and assemblyCustomer order deskNew product developmentSC centre of excellenceStrategic procurementOperational procurementServiceWarehousingInbound and outbound logistics
    • Technology and TelecomFall 2012PwC’s Global Supply Chain Survey 2013Slide 35+344%Leaders19.8%Laggards4.4%+170%LeadersLaggards81.9%+17%95.5%LeadersLaggardsSupply chain performanceLeading practicesGeographic organisationfor supply chain functionsPlanSourceMakeDeliverEnabler% of supply chainactivities outsourced0 18 36 55Outsourcing level Geographic organisationLocal Regional GlobalOrganisational set-upTop differentiating practices•Collaborative planning with key suppliers•Collaboration with key customers on planning (e.g., effective forecasting)•End-to-end supply chain planning and visibility•Multisourcing/dual sourcing•Outsourcing to service provider•Regional supply chain set-up•Inventory reduction•Best-cost country sourcing•Decreased overhead costs through increased labour productiveness•Outsourcing•Making to order•Automation of processes in order to cope with complexity•Multiplication of sources and sole-sourcing avoidance•Visibility and regular monitoring of main suppliers’ operational indicators•Visibility over short-term supply through order traceability, vendor-managedinventory and so on•Internal carbon footprint optimisation and improvement•Agreement of supply chain partners to adhere to highest ethical standards•Return of supply chain to manage recycling•Import/export optimisation (e.g., bonded warehouse)•Manufacturing and assembly optimisation (toll manufacturing)•Transfer pricingEBIT Margin [%]Inventory turns [#]Delivery performance [%]4.411.9% of participants indicatingvery important or important.Demand planningS&OPManufacturing and assemblyCustomer order deskNew product developmentSC centre of excellenceStrategic procurementOperational procurementServiceWarehousingInbound and outbound logistics94%90%83%71%58%50%50%Minimised costsMaximum deliveryperformanceMaximum volume flexibilityand responsivenessComplexity managementMinimised risksSustainabilityTax optimisation/Efficency
    • Leaders and laggards definitionSlide 36Fall 2012PwC’s Global Supply Chain Survey 2013
    • Leaders and laggards definitionStep 1: Calculation of performance score• The performance score is based on two criteria:Financial and Supply Chain performance• The total weighted score is calculated forsubmissions with at least one question percategory (Financial, Supply Chain) answeredStep 2: Determination of leaders and laggards• Per industry, the bottom and top 20% of the participantsare identified• The bottom 20% participants are defined as laggards andthe top 20% participants are defined as leadersAutomotive, Retail and Consumer Goods, Technology and TelecomIndustrial ProductsPharma and Life Sciences#ParticipantsLaggards(75)Leaders(75)Bottom 20% Top 20%Total weighted scoreSlide 37July 2012Global Supply Chain Survey 2013
    • For informationContact:Dr. Reinhard Geissbauer, Germany, Reinard.geissbauer@de.pwc.comJoseph Roussel, France, Joseph.roussel@fr.pwc.comStefan Schrauf, Germany, Stefan.schrauf@de.pwc.comMark A. Strom, US, Mark.a.strom@us.pwc.comRoger McNicholas, Singapore, roger.mcnicholas@sg.pwc.comBilal Abdallah, Singapore, bilal.abdallah@sg.pwc.comFall 2012PwC’s Global Supply Chain Survey 2013Slide 38