2004 Aerospace

759 views

Published on

  • Be the first to comment

  • Be the first to like this

2004 Aerospace

  1. 1. The Third Annual Global Survey of Supply Chain Progress Findings from a survey jointly conducted by Computer Sciences Corporation (CSC) and Supply Chain Management Review (SCMR)
  2. 2. Table of Contents Executive Summary 4 Summary of 2005 Respondents 7 Breakdown by Industry 7 Breakdown by Geographic Location of Headquarters 7 Breakdown by Type of Organization 8 Functions Included in Supply Chain Organization 8 Technologies Being Used to Advance Supply Chain Evolution and Drive Results 9 Five Levels of Supply Chain Evolution 9 Status of Supply Chain Initiatives 10 Realized Results of Each Initiative 10 Three Factors that Played the Greatest Roles in Your Most Successful Supply Chain Initiatives 11 Statements that Apply to Your Company’s Supply Chain Strategy 11 Alignment of Supply Chain Strategy with Corporate Strategy 12 Frequency of Review of Supply Chain Strategy 12 Comparison of Your Company to Others in the Same Industry of Supply Chain Excellence 13 Supply Chain Spending as a Percent of Revenue 13 Costs Included in Supply Chain Spending 14 Change in Supply Chain Spending Over the Past Three Years 14 Expected Change in Supply Chain Spending in the Next Three Years 15 Projected Supply Chain Investment Over the Next Three Years 15 Rational Behind Future Supply Chain Investments 16 Overall Impact of Supply Chain Initiatives in the Past Year on Cost 16 Overall Impact of Supply Chain Initiatives in the Past Year on Revenue 17 How Closely is Supply Chain Strategy Linked to Profit and Loss Statement and Balance Sheet? 17 To Whom Does Your Most Senior Supply Chain Executive Report? 18 THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 2
  3. 3. Effectiveness of Supply Chain Leadership and IT Leadership Collaboration on Introducing New Technologies to Improve Business Performance 18 Development Areas in the Supply Chain Organization that Need the Most Work 19 Percent of Importing/Exporting Done in Business 19 Supply Chain Vulnerability Reviews 20 Plans to Initiate Supply Chain Vulnerability Reviews 20 Presence of a Written Contingency Plan in Case of a Significant Disruption 21 Level of Agreement with Statements 21 Degree to which Product Development Strategy is Synchronized with Strategic Sourcing Strategies 22 Sharing of Standardized Bills of Material with Tier 1 Suppliers and Design Partners 22 Impact of Engineering Change Orders on Supply Chain Partners’ Ability to Respond 22 Methodology 23 THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 3
  4. 4. EXECUTIVE SUMMARY Executive Summary Majority of Supply Chain Professionals Report Impressive Gains with Efforts. Future Work will Require Greater Collaboration and More Focused Application of Technology. For the third consecutive year, CSC and Supply Chain Management Review (SCMR) magazine collaborated on a global survey among supply chain professionals across a range of 18 industries to determine exactly what progress is being made with supply chain efforts and what issues have current relevance. The survey is notable for the revelations that: companies have managed to break through the obstacles that have kept many of them mired in the middle of the CSC Supply Chain Maturity Model; and most respondents are indicating they are making significant progress over what was recorded in the first two surveys. CSC Supply Chain Maturity Model The “Innovators” are poking through or jumping over the wall to III and IV (tomorrow’s market). V Full Network Connectivity IV Value Chain Most have Constellation achieved Level II (today’s market). III Partner Collaborative Collaboration Commerce II Corporate Excellence I Enterprise Integration Functional/ Intra- Inter- External Total Business Process Enterprise Enterprise System The 2005 results confirm that achievement of significant results in cost reduction is possible with a concerted supply chain improvement effort, as 61 percent of respondents indicated reductions to supply chain costs from one to 10 percent, and an additional 13 percent indicating they had saved 11 to 20 percent. Additionally, there is evidence that companies are using the results from their improved processing to generate revenue increases. Fifty- two percent of those responding indicated they had increased revenues by 1 to 10 percent, with another 11 percent indicating they had enjoyed increases from 11 to 20 percent or more. These combined figures now provide solid evidence that serious attention to supply chain management can bring five to eight points of new profit to a firm’s financial statements. Most respondents now rate their progress on the CSC Supply Chain Maturity Model as beyond building internal excellence and efforts to establish network competence. Indeed, while 50 percent of the firms responding place their firms in levels one and two of the model, the other 50 percent say they have progressed into level three or THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 4
  5. 5. EXECUTIVE SUMMARY beyond or into areas where collaboration and technology are required to reap higher levels of achievement. The new supply chain frontier appears: as conquering levels in the model that are the least well understood must now be faced. Collaborating with trusted business partners to share knowledge electronically and using the knowledge to achieve the highest levels of benefit are what will distinguish the future supply chain leaders. The status of specific initiatives and realized results show most firms are moderately successful across the board, with the best results coming from continued efforts in strategic sourcing of indirect and direct materials, sales and operations planning, strategic inventory planning, advanced planning and scheduling, supplier relationship management and supply chain visibility. These results are very interesting as previous surveys failed to show nearly as much progress with planning activities. There is a concerted movement forward in nearly all categories of supply chain initiatives, another indication that firms are breaking through the obstacles that have kept them stuck in the middle of the supply chain progression. The biggest progress was reported this year with regard to supply chain strategy. Only 5 percent indicated they had no such strategy, down from 10 percent last year. More decisively, 38 percent say supply chain is developed and executed at the division or business unit level versus 18 percent in 2004. Forty-nine percent say supply chain strategy is aligned with corporate strategy and 57 percent say it is being reviewed formally every year — more evidence that supply chain is gaining the attention of executive management as a critical business driver. Paradoxically, 32 percent of all respondents indicate they are only in the process of developing a supply chain strategy. There are still some laggards. Most firms continue to indicate they rely on technology to get them into and through the advanced levels of the model. The usual technologies were cited, including ERP systems, e-procurement, inventory planning, web-based applications/services, warehouse management systems, and advanced planning being the favorite areas. In particular, a big jump forward was noted in attention being paid to radio frequency identification (RFID) technology, which went nearly unnoticed in last year’s survey. Sixteen percent of the respondents listed RFID among the technologies being used to drive results. With regard to projected supply chain investments expected to be made over the next three years, investment in RFID moved from almost no plans to 31 percent indicating interest in investing in this emerging technology. It is worth noting that while risk and vulnerability remain crucial issues for supply chain professionals, the survey once again did not show the kind of concern or preparedness we would expect. While the survey showed there was considerable concern for a host of issues related to supply chain vulnerability, when asked if the supply chain organization had contingency plans in case of significant disruption, 54 percent replied negatively. Inventory planning and inventory level strategy remains the primary concern, but with the increase in global shipments experienced by most firms, a new set of issues is emerging. International freight movement, new import or customs regulations, and critical trading partner vulnerabilities are now of concern to 30 percent or more of the firms responding. Clearly, with all of the progress reported, vulnerability looms as an issue to be conquered before supply chain efforts are deemed complete. Regarding which areas need more development, the responses indicated few areas where there was not some concern. Developing a business case for supply chain investment was near the top in the areas needing work, in spite of the documented savings to costs and improvements to revenues. Finding the means to collaborate more effectively — internally and externally — is still one of the major problems confronting the supply chain professional. When we inquired if the company had a standardized enterprise-wide Bill of Material that was shared with Tier 1 supply chain and design partners, 75 percent said “No”! Despite the advances indicated by this year’s results, there appears to be a full plate of opportunities still to be attacked. RFID requires a case for investment for most firms, while internal collaboration continues to be a concern in spite of companies rating their progress as beyond level three. Understanding new technologies had a surprisingly high need rating. THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 5
  6. 6. EXECUTIVE SUMMARY We noted in previous survey results that cooperation between supply chain leadership and IT leadership was improving, and this year we found even further progress in this important element of success. Two-thirds of those replying indicated a rating of three or higher (on a five-point scale) in effectiveness of the two groups to introduce new technologies that can improve business performance. That brings us to the new call for action. When we finished reviewing our survey results, we took some additional time to compare these results with documented feedback from another eight reputable organizations reporting on supply chain efforts. The findings came across with a clear mandate for gaining and holding improvements. Here are a few observations based on this combined analysis: • Supply chain management (SCM) efforts deliver the greatest results when SCM is part of an overall business strategy — it should not be a standalone effort. • SCM is most likely to under deliver when there is poor connection between functions across a total business — often noted by poor supply chain visibility and lack of best practice sharing internally. • While technology is an absolute necessity for advanced supply chain progress, poor impact of technology as an enabler is still a major thorn in the side of many practitioners. • Despite potential economies from global supply chain efforts, most companies optimize locally. • In spite of the rhetoric around the importance of customers, few firms are collaborating closely with key customers. • Companies continue to install software before rethinking their underlying processes and expect root cause problems to be eliminated. In general, companies across the industries represented are continuing their relentless march forward with supply chain as a business driver. But the roadmap is not being followed in many instances, as firms slide off the path to optimization as they concentrate on local conditions. To reach the highest levels of potential improvement it is now time to get the train on the tracks and move forward with what are clearly proven techniques. That means collaborating more effectively internally to optimize processing, and then working with key suppliers and customers to more effectively apply technology as an enabler and factor in achieving total success. THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 6
  7. 7. SUMMARY OF 2005 RESPONDENTS Summary of 2005 Respondents Breakdown by Industry Other 10% Wholesale/Distribution 4% Utilities 1% Third Party Logistics Provider 7% Telecommunications 2% Retail 6% Publishing and Printing 4% Professional Services 1% Oil and Gas 4% Mining and Metals 3% Manufacturing-Process 10% Manufacturing-Discrete 11% High-Tech 6% Healthcare 0% Government 1% Food Services 2% Financial Services 0% Consumer Goods 8% Chemicals 3% Automotive 1% Aerospace and Defense 6% 0% 2% 4% 6% 8% 10% 12% Breakdown by Geographic Location of Headquarters Q32: Where is your company headquartered? Europe – 9% Other – 9% North America – 71% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 7
  8. 8. SUMMARY OF 2005 RESPONDENTS Breakdown by Type of Organization Q29: Describe the organization for which you are responding. Group, Multiple Division, Wholly Owned Division – 23% Subsidiary, or SBU – 22% Corporate – 55% Functions Included in Supply Chain Organization Q31: Which of the following functions are included in your supply chain organization? (Mark all that apply) Other 6% Supply chain Software and Technology 48% Supplier/Customer Collaboration (SRM/CRM) 35% Marketing, Sales, and Customer Service 16% Inventory and Materials Management 75% Forecasting, Planning, and Scheduling 69% Manufacturing 30% Logistics, Transportation, and Warehousing 86% Purchasing, Procurement, and Sourcing 80% 0% 20% 40% 60% 80% 100% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 8
  9. 9. SUMMARY OF 2005 RESPONDENTS Technologies Being Used to Advance Supply Chain Evolution and Drive Results Q2: What technologies are you using to advance your supply chain evolution and drive results? RFID 16% Just-in-Time (JIT)/Kanban 28% Warehouse Management System (WMS) 46% Transportation Management System (TMS) 34% Supplier Relationship Management (SRM) Application 14% Customer Relationship Management (CRM) Application 30% Inventory Planning, Analysis, Optimization System 52% Supply Chain Event Management System 17% Web-based Application/Services 48% Collaborative Product Design, Engineering, Manufacturing Application 13% Collaborative Planning, Forecasting, and Replenishment (CPFR) 20% Advanced Planning, Forecasting, and Scheduling System 43% E-Procurement and Business-to-Business Exchanges 43% ERP System 62% 0% 20% 40% 60% 80% Five Levels of Supply Chain Evolution Q33: Please identify your company's current stage of development for each of the business applications. Returns, Repairs, Recycling, Maintenance Product Management, Design, and Engineering RFID Manufacturing Supply Chain Software and Technology Supplier/Customer Collaboration (SRM/CRM) Marketing, Sales, and Customer Service Inventory and Materials Management Forecasting, Planning, and Scheduling Logistics, Transportation, and Warehousing Purchasing, Procurement, and Sourcing 0% 20% 40% 60% 80% 100% Level 1 & 2: Internal Optimization Level 3: Advanced Supply Chain Management Level 4: eCommerce: Value Chain Collaboration Level 5: eBusiness: Full Network Connectivity THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 9
  10. 10. SUMMARY OF 2005 RESPONDENTS Status of Supply Chain Initiatives Q3A: How successful are your initiatives driving supply chain advancement? For each initiative, mark the status. RFID Collaborative Planning with Key Customers/Suppliers Customer Relationship Management Supplier Relationship Management Collaborative Design and Product Development Supply Chain Network Design/Analysis Complete In Progress Business Intelligence Systems Planned (Next 12 Months) Advance Planning and Scheduling Planned (2-5 Years Out) Strategic Inventory Planning No Plans Sales and Operations Planning Network Partnerships Supply Chain Visibility and Event Management Strategic Sourcing of Indirect Materials Strategic Sourcing of Direct Materials 0% 20% 40% 60% 80% 100% Realized Results of Each Initiative Q3B: How successful are your initiatives driving supply chain advancement? Rate each initiative by its realized results. RFID Collaborative Planning with Key Customers/Suppliers Customer Relationship Management Supplier Relationship Management Collaborative Design and Product Development Supply Chain Network Design/Analysis Highly Successful Moderately Successful Business Intelligence Systems Moderately Disappointing Advance Planning and Scheduling Highly Disappointing Strategic Inventory Planning No Opinion/In Progress/ Sales and Operations Planning Not Complete Network Partnerships Supply Chain Visibility and Event Management Strategic Sourcing of Indirect Materials Strategic Sourcing of Direct Materials 0% 20% 40% 60% 80% 100% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 10
  11. 11. SUMMARY OF 2005 RESPONDENTS Three Factors that Played the Greatest Roles in Your Most Successful Supply Chain Initiatives Q4: What three factors played the greatest roles in your most successful supply chain initiatives? Other 6% Realistic Business Case Established to Track Results 18% Collaboration with Supply Chain Partner(s) 22% Performance Measures Aligned to Desired Outcomes 43% Trust Between Workers and Senior Management 10% Awareness of Need to Substantially Reduce Inventories 27% Awareness of Need to Increase Customer Satisfaction Ratings 27% Project Management Clearly Established and Executed 34% Visible and Active Senior Executive Commitment to Outcomes 57% High Goals Set at Onset 14% Technology Enablers Established and Operating 31% 0% 20% 40% 60% 80% Statements that Apply to Your Company’s Supply Chain Strategy Q1. Mark all statements that apply to your company's supply chain strategy. Our supply chain strategy is shared and 17% common with our supply chain partners Our supply chain strategy is integrated into 30% our business strategy Our supply chain strategy is comprehensive 21% across the entire corporation Our supply chain strategy is developed and 40% executed at the division/business unit level Our supply chain strategy is developed and 29% executed at the department level We are in the process of developing a 31% supply chain strategy We do not have a supply chain strategy 4% 0% 10% 20% 30% 40% 50% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 11
  12. 12. SUMMARY OF 2005 RESPONDENTS Alignment of Supply Chain Strategy with Corporate Strategy Q5: How well is your supply chain strategy aligned with your overall corporate strategy? 1 = not at all aligned 5 = fully aligned 5 – 11% 1 – 3% 4 – 38% 2 – 17% 3 – 31% Frequency of Review of Supply Chain Strategy Q6: How often does your organization formally review or update its supply chain strategic plan? Every Year – 56% Every Other Year – 5% Every Three Years – 2% Every Five Years – 1% As Business Conditions Dictate – 27% Other – 9% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 12
  13. 13. SUMMARY OF 2005 RESPONDENTS Comparison of Your Company to Others in the Same Industry of Supply Chain Excellence Q7: How does your company compare to other companies in your industry in terms of supply chain excellence? My Company is a My Company is the Laggard – 37% Leader – 27% My Company is a Quick Adopter – 36% Supply Chain Spending as a Percent of Revenue Q10: What is your supply chain spending as a percent of revenue? Greater than 50% 19% Between 41% and 50% 8% Between 31% and 40% 7% Between 21% and 30% 7% Between 11% and 20% 8% Between 5% and 10% 29% Less than 5% 20% 0% 10% 20% 30% 40% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 13
  14. 14. SUMMARY OF 2005 RESPONDENTS Costs Included in Supply Chain Spending Q11: What costs are included in this? Other 5% RFID Compliance Costs 15% Supply Chain Software and Technology 53% Supplier/Customer Collaboration (SRM/CRM) 30% Marketing, Sales, and Customer Service 16% Inventory and Materials Management 66% Forecasting, Planning, and Scheduling 53% Manufacturing 30% Logistics, Transportation, and Warehousing 83% Purchasing, Procurement, and Sourcing 77% 0% 20% 40% 60% 80% 100% Change in Supply Chain Spending Over the Past Three Years Q12: How has your relative level of supply chain spending changed over the past three years? Significantly Higher (more than 30%) – 7% Significantly Lower (more than 30%) – 4% Somewhat Higher (from 10 to 30%) – 31% Somewhat Lower (from 10 to 30%) – 20% About the Same (within +/- 10%) – 38% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 14
  15. 15. SUMMARY OF 2005 RESPONDENTS Expected Change in Supply Chain Spending in the Next Three Years Q13: How will your relative level of supply chain spending change in the next three years? Significantly higher (more than 30%) – 9% Significantly lower (more than 30%) – 5% Somewhat higher (from 10% to 30%) – 35% Somewhat lower (from 10% to 30%) – 19% About the same (within +/- 10%) – 32% Projected Supply Chain Investment Over the Next Three Years Q14: In which areas of the supply chain are you projecting investment over the next three years? Other 2% Returns, Repairs, Recycling, and Maintenance 19% Product, Management, Design, and Engineering 17% RFID 30% Manufacturing 19% Supply Chain Software and Technology 42% Supplier/Customer Collaboration (SRM/CRM) 40% Marketing, Sales, and Customer Service 17% Inventory and Materials Management 45% Forecasting, Planning, and Scheduling 55% Logistics, Transportation, and Warehousing 60% Purchasing, Procurement, and Sourcing 48% 0% 20% 40% 60% 80% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 15
  16. 16. SUMMARY OF 2005 RESPONDENTS Rational Behind Future Supply Chain Investments Q15: What is the rational behind your projected future supply chain investment? My existing supply chain investment will meet 5% my business needs for the nest 1-3 years Cost for doing business 9% Seeking competitive advantage with a cost 36% reduction strategy Seeking competitive advantage with a 45% growth strategy Changes in the macro economic environment 5% 0% 10% 20% 30% 40% 50% Overall Impact of Supply Chain Initiatives in the Past Year on Cost Q16: In the past year, what has been the overall impact of your supply chain initiatives on cost? Don't Know/Not Sure 19% Initiative Failed to Meet Planned Objectives 3% Reduced by more than 20% 3% Reduced by 11% to 20% 11% Reduced by 6% to 10% 36% Reduced by 1% to 5% 28% 0% 10% 20% 30% 40% 50% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 16
  17. 17. SUMMARY OF 2005 RESPONDENTS Overall Impact of Supply Chain Initiatives in the Past Year on Revenue Q16: In the past year, what has been the overall impact of your supply chain initiatives on revenue? Don't Know/Not Sure 37% Initiative Failed to Meet Planned Objectives 2% Increased by More than 20% 5% Increased by 11% to 20% 8% Increased by 6% to 10% 19% Increased by 1% to 5% 29% 0% 10% 20% 30% 40% 50% How Closely is Supply Chain Strategy Linked to Profit and Loss Statement and Balance Sheet? Q17: How closely is your supply chain strategy linked to the profit and loss statement and balance sheet? Not at All – 16% To a High Degree – 30% Somewhat – 54% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 17
  18. 18. SUMMARY OF 2005 RESPONDENTS To Whom Does Your Most Senior Supply Chain Executive Report? Q18: To whom does your organization's most senior supply chain executive report? CEO – 33% Other – 7% CFO – 8% COO – 18% VP/SVP Operations – 33% Effectiveness of Supply Chain Leadership and IT Leadership Collaboration on Introducing New Technologies to Improve Business Performance Q19: How effective has your supply chain leadership been in working with IT leadership to introduce new technologies that can improve business performance? 1 = not very effective 5 = very effective 5 – 15% 1 – 11% 4 – 24% 2 – 20% 3 – 30% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 18
  19. 19. SUMMARY OF 2005 RESPONDENTS Development Areas in the Supply Chain Organization that Need the Most Work Q20: Which of the following development areas does your supply chain organization need to work on most? (Rank top three only) Developing a Business Case for RFID Investments Developing a Business Case for Supply Chain Investments Understanding the Relationship Between Business and Technology Teamwork Plan Execution Planning 1 Customer Service 2 Domestic Versus Global Supply Chain 3 Importing/Exporting Internal Collaboration Collaboration With Suppliers and Customers Understanding New Technologies Communications Organization Project Management 0% 20% 40% 60% 80% 100% Percent of Importing/Exporting Done in Business Q21: How much importing/exporting is done as a part of your business? Greater than 20% – 46% Less than 5% – 20% 5% to 10% – 15% 16% to 20% – 11% 11% to 15% – 10% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 19
  20. 20. SUMMARY OF 2005 RESPONDENTS Supply Chain Vulnerability Reviews Q22: What is your response to the following statement: I am concerned that my supply chain is vulnerable because of … Other Visibility into Your Trading/Outsourcing Partner Shipments Critical Trading Partner Vulnerabilities Strongly Disagree Disagree Inventory Planning and Inventory Level Strategy Neutral Potential Security Breaches or Terrorist Attacks Agree Strongly Agree International Freight Movement Changing European Union Conditions New Import or Customs Regulations Unstable Global Sourcing Points 0% 20% 40% 60% 80% 100% Plans to Initiate Supply Chain Vulnerability Reviews Q23: Have you or are you planning to initiate supply chain vulnerability review in the following areas? Other 5% Visibility into Your Trading/Outsourcing Partner Shipments 26% Critical Trading Partner Vulnerabilities 35% Inventory Planning and Inventory Level Strategy 55% Potential Security Breaches or Terrorist Attacks 18% International Freight Movement 38% Changing European Union Conditions 15% New Import or Customs Regulations 35% Unstable Global Sourcing Points 28% 0% 20% 40% 60% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 20
  21. 21. SUMMARY OF 2005 RESPONDENTS Presence of a Written Contingency Plan in Case of a Significant Disruption Q24: Does your supply chain organization have written contingency plans in the case of a significant disruption? Not Sure – 11% Yes – 38% No – 50% Level of Agreement with Statements Q25: Please indicate your level of agreement to the following statements. My organization pays sufficient attention to supply chain vulnerability measures and risk mitigation actions Strongly Disagree Disagree My organization has sufficient executive Neutral visibility and accountability for supply chain continuity and protection Agree Strongly Agree My organization has the ability to allow key suppliers and customers to view order status online 0% 20% 40% 60% 80% 100% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 21
  22. 22. SUMMARY OF 2005 RESPONDENTS Degree to Which Product Development Strategy is Synchronized with Strategic Sourcing Strategies Q26: To what degree is your product development strategy synchronized with your strategic sourcing strategies? To a Large Amount – 20% Not at All – 24% Somewhat – 56% Sharing of Standardized Bills of Material with Tier 1 Suppliers and Design Partners Q27: Do you have a standardized enterprise-wide Bill of Material (BOM) that you share with your tier 1 supply No 74% chain and design partners? Yes 26% 0% 20% 40% 60% 80% 100% Impact of Engineering Change Orders on Supply Chain Partners’ Ability to Respond Q28: How do engineering change orders impact your supply chain partners' ability to respond to your sourcing needs? To a Large Amount – 20% Not at All – 24% Somewhat – 56% THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 22
  23. 23. METHODOLOGY Methodology The 2005 Global Survey of Supply Chain Progress was sent to supply chain professionals in North America, Europe, Australia, and selected countries around the world. The names were drawn from CSC’s client base as well as from readers of Supply Chain Management Review and other publications of Reed Business Information. A total of 120 respondents completed the comprehensive, eight-page questionnaire. The majority of the responses came from North America, mainly the United States. Eighteen industries were represented, ranging from aerospace and defense to retail and consumer packaged goods to high technology and telecommunications. Organizationally, 62 percent of the respondents represented corporate entities; 19 percent were from wholly- owned subsidiaries or strategic business units; and 19 percent were from groups or multiple divisions. THE THIRD ANNUAL GLOBAL SURVEY OF SUPPLY CHAIN PROGRESS 23
  24. 24. Computer Sciences Corporation Consulting Group 266 Second Avenue Waltham, Massachusetts 02451 United States +1.781.890.7446 Worldwide CSC Headquarters The Americas 2100 East Grand Avenue El Segundo, California 90245 United States +1.310.615.0311 Europe, Middle East, Africa Royal Pavilion Wellesley Road Aldershot Hampshire GU11 1PZ United Kingdom +44(0)1252.534000 Australia 26 Talavera Road Macquarie Park, NSW 2113 Australia +61(0)29034.3000 Asia 139 Cecil Street #08-00 Cecil House Singapore 069539 Republic of Singapore +65.221.9095 About CSC Computer Sciences Corporation helps clients achieve strategic goals and profit from the use of information technology. With the broadest range of capabilities, CSC offers clients the solutions they need to manage complexity, focus on core businesses, collaborate with partners and clients, and improve operations. CSC makes a special point of understanding its clients and provides experts with real-world experience to work with them. CSC is vendor-independent, delivering solutions that best meet each client’s unique requirements. For more than 45 years, clients in industries and governments worldwide have trusted CSC with their business process and information systems outsourcing, systems integration and consulting needs. The company trades on the New York Stock Exchange under the symbol “CSC.” Copyright © 2005 Computer Sciences Corporation. All rights reserved. BE05_0274

×