A survey of Irish supply chain managers about the challenges and opportunities that they face now and in the next few years.

1. 1

2. Amárach Research, in partnership
with Accenture, has surveyed 150
senior Irish executives with
responsibility for supply chain
management and strategy in their
organisations.
The survey was conducted online,
in February 2012.
The sample represented a cross-
section of Irish medium and large-
sized businesses, Irish and foreign
owned, exporters and domestic
operations.
Those responsible for supply chain
management are optimistic about
the future, but also realistic about
the risks and rewards that lie ahead.
This report summarises the main
findings from the survey.

3. Not Strategic
Integration Into Strategy
Supply chain strategy is
60% integrated into business
strategy in the majority of
businesses surveyed in
Ireland
Similar percentage in US
survey in 2010
19%
12%
Nevertheless, one in five do
9%
not have a supply chain
strategy
Supply Chain SC strategy is We're in the We don't have a
(SC) strategy is left to individual process of supply chain
The biggest gap is between
integrated into business developing a strategy Irish-owned and foreign-
our business divisions rather supply chain owned companies: 3 in 10 of
strategy than centralised strategy the former don’t have a
strategy, falling to just 4% of
Q. To what extent is your supply chain strategy integrated the latter
into your overall business?
3

4. Fuelling Inflation
Cost Pressures
With oil prices (in euro) back
65% to their pre-recession peak, it
is not surprising to see fuel
costs top the list of cost
46% pressures for Irish supply
41% chain managers
32% 31%
Transport costs are a
particular feature of fuel
21% costs, and this is a growing
issue for exporters who need
to ship bulk freight via sea
transportation in particular
Fuel costs Staff costs Raw Exchange Other Finance
The fact that staff costs are
material Costs Operating costs the second highest pressure
costs Costs
point should also be a cause
Q. Thinking about costs, which of the following sources of for concern, given the labour
supply chain cost pressures are you experiencing in your market changes that have
business right now? already occurred.
4

5. Unsustainable?
Sustainability of Supply Chain
35.0%
30%
30.0%
27%
25.0%
20.0%
15.0%
14% 13%
10.0%
6%
5.0% 4% 4%
0.0%
1 Completely 2 3 4 5 6 7 Completely
Unsustainable Sustainable
Q. Sustainability is a key concern for many businesses, due to environmental, energy and regulatory trends.
In your opinion, to what extent do you have a sustainable supply chain, on a scale of 1 to 7, where 1 is completely
unsustainable and 7 is entirely sustainable?
5

6. Looking Ahead
Q. What aspect of sustainability will present the biggest
challenge to your supply chain practices in the next 1-2 years?
6

7. Taking Control
Taking Control
Reinforced key elements of your
After last year’s shock to
digital supply chain 18% global supplies from Japan, it
is perhaps not surprising to
see managers widening the
Used hedging to mitigate finance/
exchange rate risks 20% range of suppliers they use
Used business process
In addition, the majority have
outsourcing to reduce potential 33% conducted detailed risk
risks appraisals to determine which
parts of the supply chain are
Conducted detailed risk
especially vulnerable
appraisals of key suppliers/parts 52%
of supply chain
BPO has been adopted by a
Established relations with other third of managers in order to
suppliers to ensure continuity of 69% strengthen the resilience of
supply
their supply chain.
Q. Which of the following have you done in order to minimize
supply chain risk for your organisation in the past twelve
months?
7

8. Vulnerability
Vulnerability of Supply Chain
40.0%
36%
35.0%
34%
30.0%
25.0%
20.0%
15.0%
11% 10%
10.0% 7%
5.0%
4%
0%
0.0%
1 Extremely 2 3 4 5 6 7 Not
Vulnerable Vulnerable At
All
Q. In your opinion, typically how vulnerable is the supply chain of companies based in Ireland, on a scale of 1 to 7,
where 1 is extremely vulnerable and 7 is not vulnerable at all?
8

9. Looking Ahead
Q. What do you consider to be the main supply chain
opportunities for your organisation in the next 1-2 years?
9

10. Supply Chain Island
Q. What do you consider to be the main supply chain
opportunities for your IRELAND in the next 1-2 years?
10

11. Supply chain managers in Ireland
are facing renewed pressures
from multiple sources, especially
energy/transport.
Nevertheless, they have already
taken extensive measures to
mitigate some of the potential
threat from disruption – though
vulnerabilities remain: including
those relating to sustainability.
Despite the challenges many have
faced in recent years, Irish supply
chain managers are confident
about the difference they can
make to the future success of their
businesses – and to the future
success of the country.

12. Call us on 01 410 5200 if you want your business to
bounce forward to success:
Gerard O’Neill Chairman
for a confidential discussion about your needs and to
explore how we can help you succeed through world
class market research.
e. gerard.oneill@amarach.com
w. www.amarach.com
b. www.amarach.com/blog
t. twitter.com/AmarachResearch