Network of Networks Study 2016-17 Summary Charts

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Report Details: The research for this report was conducted via an online survey from November 8, 2016 – April 3, 2017. Surveys were conducted among a mix of manufacturers, retailers, wholesalers/distributors/co-operatives, and third-party logistics providers (n=39). Objective: To understand the value proposition of the automation of the network of networks, which enables interoperability between networks. NOTE: A network is considered connectivity in any form between supply chain trading partners – one-to-one, one-to-many, or many-to-many. Highlight: While companies want to improve B2B processes, today’s technologies and processes are not equal to the challenge. To move forward and gain competitive advantage, map processes outside-in using strategic relationships with new forms of technologies and set realistic goals.

Business

Network of Networks Study
Summary Charts
November 2016 – April 2017

Supply Chain Insights LLC Copyright © 2016, p. 2
Agenda
 Study Overview
 Network of Networks
 Supply Chain Planning
 Order Processing

Supply Chain Insights LLC Copyright © 2016, p. 3
Study Overview

Supply Chain Insights LLC Copyright © 2016, p. 4
Respondents Are Primarily Manufacturers
Across a Mix of Industries

Supply Chain Insights LLC Copyright © 2016, p. 5
The Most Common Industries Represented Are
Industrial Manufacturing and Chemical

Supply Chain Insights LLC Copyright © 2016, p. 6
Most Are Director Level or Higher,
Primarily in the US/Canada

Supply Chain Insights LLC Copyright © 2016, p. 7
Agenda
 Study Overview
 Network of Networks
 Supply Chain Planning
 Order Processing

Supply Chain Insights LLC Copyright © 2016, p. 8

Supply Chain Insights LLC Copyright © 2016, p. 9
Sampling of Network Interoperability
Benefits

Supply Chain Insights LLC Copyright © 2016, p. 10
Sampling of Network Interoperability
Obstacles

Supply Chain Insights LLC Copyright © 2016, p. 11
Highest Maturity Is Reported for Invoicing
& Settlement and Transportation Visibility

Supply Chain Insights LLC Copyright © 2016, p. 12
Demand & Planning Visibility Are Rated as Among Most
Effective at Improving Cost, Inventory & Customer Service

Supply Chain Insights LLC Copyright © 2016, p. 13
Demand Visibility Is Rated as
Most Effective at Improving on COST

Supply Chain Insights LLC Copyright © 2016, p. 14
Demand, Manufacturing and Planning Visibility Are Rated as
Most Effective at Improving on INVENTORY MANAGEMENT

Supply Chain Insights LLC Copyright © 2016, p. 15
Demand & Planning Visibility Are Rated as
Most Effective at Improving on CUSTOMER SERVICE

Supply Chain Insights LLC Copyright © 2016, p. 16
Summary Supply Chain Visibility Strengths

Supply Chain Insights LLC Copyright © 2016, p. 17
Summary of Supply Chain Visibility Challenges

Supply Chain Insights LLC Copyright © 2016, p. 18
Tracking Purchase Orders and Measuring Inbound Logistics Would
Be Most Helpful to BOTH Channel Partners & Procurement

Supply Chain Insights LLC Copyright © 2016, p. 19
Tracking Order Status & Measuring Inbound Logistics Performance
Are Highest Performing Elements of Network of Networks

Supply Chain Insights LLC Copyright © 2016, p. 20
Tracking Purchase Order Status & Measuring Inbound
Logistics Performance Are Expected to
Help Channel Partner Relationships the Most

Supply Chain Insights LLC Copyright © 2016, p. 21
Measuring Inbound Logistics Performance & Supplier Spend
Data Are Expected to Help Procurement the Most

Supply Chain Insights LLC Copyright © 2016, p. 22
Agenda
 Study Overview
 Network of Networks
 Supply Chain Planning
 Order Processing

Supply Chain Insights LLC Copyright © 2016, p. 23
Production & Tactical Supply Planning Are Rated as Most
Effective

Supply Chain Insights LLC Copyright © 2016, p. 24
Sales & Customer Service/Operations Are Rated as the Most
Aligned Planning Teams; S&OP and Supplier Development Are
Least Aligned

Supply Chain Insights LLC Copyright © 2016, p. 25
Agenda
 Study Overview
 Network of Networks
 Supply Chain Planning
 Order Processing

Supply Chain Insights LLC Copyright © 2016, p. 26
EDI/XML Is More Common Method for Processing
Sales vs. Purchase Orders

Supply Chain Insights LLC Copyright © 2016, p. 27
EDI/XML Is More Common Method for Processing
Sales vs. Purchase Orders

Supply Chain Insights LLC Copyright © 2016, p. 28
Respondents Use a Mix of Multi-Party Business Networks

Supply Chain Insights LLC Copyright © 2016, p. 29
Sales Orders Are Slightly More Likely to Be Received Digitally
vs. Purchase Orders

Supply Chain Insights LLC Copyright © 2016, p. 30
Top Challenge for Manual Orders Is Time Consuming

Supply Chain Insights LLC Copyright © 2016, p. 31
One-Third Process the Order CHANGES
Digitally Usually or Always

Supply Chain Insights LLC Copyright © 2016, p. 32
Respondents Report Getting an Average of 4 Supplier Metrics
in a Timely Manner

Supply Chain Insights LLC Copyright © 2016, p. 33
On Average Over Half of Invoices Are Received Digitally;
When Not, Primary Challenge Is Time

Report Details: The research for this report was conducted via an online survey from January 16 – April 3, 2017. Surveys were conducted among a mix of manufacturers, retailers, and wholesalers/distributors/co-operatives (n=56). Objective: To understand the role of supply chain finance in determining supply chain strategy and gaining competitive advantage towards supply chain excellence. Highlight: Managing costs is a struggle for most companies. While 88% of companies have implemented Enterprise Resource Planning (ERP), the hard work of process evolution and maturity continues. In this report we share the current state of supply chains in managing costs, and then take a look at the processes and organizational design factors to evaluate the impact on cost management.

Medical Device Supply Chain: An Analysis of the Supply Chain Metrics That Matter

Lora Cecere

Supply Chain Insights: Building the Customer-Centric Supply Chain -17 AUG 2016

Michael Hambrick

Current State of OmniChannel and Impact on the Supply Chain

Lora Cecere

2016 Supply Chains to Admire - Slide Deck - 20 July 2016

Lora Cecere

The 2016 Supply Chains to Admire Not all supply chains are equal. Similarly, not all rankings of supply chain performance are equal. In this webinar we will talk about the methodology used to rank the 2016 Supply Chains to Admire, and discuss the results with select winners from 2015 and 2016. Join us to understand how to improve your performance using quantitative methods and hear from winners how they have achieved their success.

Supplier Development Study - Feb-May 2016 - Summary Charts

Lora Cecere

Executive Summary Trust, but verify. During the recession of 2007, trust in the extended supply chain was broken. As companies throttled-back production to adjust to falling demand, many suppliers who thought that they were strategic were left “holding the bag.” Risk was pushed backwards in the supply chain violating the tenants of many strategic relationships. As a result, shipments were refused and orders canceled. Payments were delayed and trust was violated. Many supplier companies never recovered, tightening the supply of materials in discrete value chains like automotive and high-tech. As growth slowed over last five years, the supply chain focused on an agenda to reduce costs. Commodity price volatility increased and procurement pressures to reduce costs resulted in transactional buying (a focus to minimize price variance). In many companies, strategic sourcing and commodity management through category buying programs took a “back seat.” Supplier programs become more reactive. In this environment, as shown in Figure 2, supplier viability—an environment for a supplier to manage a successful business—became a pressing risk issue. Sitting four and five levels back in the value network, suppliers experienced a double-whammy—pressure to reduce price along with the lengthening of Days of Payables. Ironically, while technology in supply chain finance progressively improved to enable a quick transfer of funds across industries, Days of Payables increased 30 and 60 days. The second irony is the cost of capital. While brand owners have a lower cost of capital than their suppliers, few companies extend their brand capabilities in supply chain finance to their suppliers. While companies talk supply chain finance, squeezing suppliers is the market reality. In parallel, economic uncertainty and demand volatility increased, also putting pressure on the supplier base. While the adoption of demand-driven processes could improve supplier alignment, demand-driven process adoption is slow. Few companies are taking ownership of demand signals to their supply base. Traditional processes dominate. Companies are strongly wedded to supply-centric processes based on traditional forecasting processes using order patterns. With the lengthening of order latency, and the lengthening of the long tail of the supply chain, the synchronization of suppliers into the value network is out-of-step, creating waste and obsolescence.

Customer-Centric Study 2016 - Summary Charts

Lora Cecere

Executive Summary As growth slows, manufacturing companies struggle with rising complexity and increasing levels of demand error. The question is “Could companies decrease complexity and improve growth by building outside-in processes that are customer-centric?” We believe the answer to this question is a resounding “YES!” However, there is a problem. Across the industry there is no common definition of customer-centric supply chains. There is no clear and accepted methodology to build this core competency. As a result, most companies have forged their own paths. In this study, 80% of those surveyed have a customer-centric strategy; yet over half (54%) state that there is room for improvement to drive performance changes in their supply chain. Companies struggle to drive alignment and build constancy of purpose. The goal of this report is to fill this gap. State of the Industry Today 46% of respondents rate their supply chain as performing well on the delivery of a customer-centric supply chain strategy. The definition of a customer-centric supply chain used for this research is: one that is aligned with order management, product strategies and distribution processes to deliver/adapt to against customer segmentation strategies.

Presentation on Customer-Centric Supply Chains for Barcelona CSCMP Event in M...

Lora Cecere

S&OP Study Prelim Summary Charts used in the Why Is S&OP So Hard? report Executive Overview Sales and Operations Planning (S&OP), the cross-functional process to align the commercial processes of sales and marketing with the operational processes of supply and manufacturing, is having a renaissance. It is not a new process. Companies have worked on these processes for over 35 years; but today, only one out of two companies believes that their processes are effective. Why is it so hard? Answering this question is the goal of this report. Figure 3. Sales & Operations Planning Process Overview A mature S&OP process improves organizational agility and alignment; but, this requires focus and clear leadership over a period of at least three to five years. A higher level of success happens when the S&OP processes report to a profit center manager and decision making is aligned to the commercial processes. With one in two companies aligning S&OP to product line production, not to commercial processes, it is difficult to drive maturity. Ideally, the leader of the S&OP process understands both the commercial drivers, and the supply constraints, and can make the pivot; but this is seldom the reality. Today, due to popularity, companies have more than one S&OP process. In this research, a multinational company will have four to six separate and distinct S&OP processes with different maturity levels. While many will try to drive improvements with big technology initiatives, based on a decade of research on the topic, we recommend starting by tackling the change management issues. In this report, we share five barriers, and four misconceptions while giving supporting research to challenge change in the organization.

Presentation on the Future of Supply Chains at Transplace Conference in San A...

Lora Cecere

Case Studies on the End-To-End Journey - Slide Deck - 30 MAR 2016

Lora Cecere

From suppliers’ suppliers to customers’ customers, there are many nodes on an end-to-end journey. There is both an art and science to optimizing the end-to-end journey, and in this panel webinar we heard examples and strategies from Keith Nash, Vice President Process & Technology, Lennox Industries and Frank Vorrath, Vice President Global Supply Chain, Johnson Controls about how to improve the flow of a supply chain. Listen to this recording to understand how companies like yours have defined supply chain excellence and managed suppliers through production to provide a superior customer experience.

Cross-Survey Analysis 2012-2015 - 28 Studies - Summary Charts - 17 MAR 2016

Lora Cecere

Research Overview: Details: The research for this report is based on twenty-eight surveys fielded during the period of January 2012 – December 2015. The research was a progressive set of studies to understand supply chain excellence. In the report, we use responses from over 2000 respondents to understand the characteristics of a supply chain that is working well.  Objective: To better understand the levers and actions that are the most impactful for supply chain leaders to take to improve supply chain excellence.  Highlights: While many claim that consolidation of ERP instances will improve supply chain excellence, we find in this report that companies that report that their supply chains are working well have designed organizations to centralize reporting with manufacturing reporting to the supply chain leader In addition, these leaders invested in supply chain visibility, have a clearer definition of supply chain strategy to improve alignment and agility, and are better at delivering on technology projects to deliver software usability.

Supply Chain Talent Study - MARCH 2017 - Preliminary Summary Charts

Lora Cecere

• Report Details: The research for this report was conducted via an online survey from February 20 - March 20, 2017. Surveys were conducted among all those working in or studying the supply chain industry -- including business, academia, and students (n=386). • Objective: To understand the generational differences among supply chain professionals in terms of what's important, where the gaps are, and satisfaction with their supply chain careers. • Highlight: While 70% of supply chain employees are satisfied with their careers, there are notable differences by generation in terms of job, satisfaction and what matters in their careers. For example, Generation X and Millennials want more work-life balance, fewer hours, and greater flexibility to work from home compared to Baby Boomers. In additional, Millennials are seeking more coaching and on-the-job training, suggesting an opportunity for employers seeking to recruit top talent. Check out the full report for more details, insights, and recommendations.

Supply Chain Finance Fundamentals - What It Is, What It's Not and How It Works

Susan Johnston

Driving a Customer-Centric Supply Chain - 7 NOV 2016

Lora Cecere

Report Details: The research for this report was conducted via an online survey from August 12 - October 14, 2016. Surveys were conducted among Manufacturers, Wholesalers/Distributors/Co-operatives and Third-Party Logistics Providers (n=56). Objective: To determine how companies build a customer-centric supply chain and how well it is working for them. Highlight: In this study, 80% of companies have a customer-centric strategy; yet the majority (54%) state that there is room for improvement to drive performance changes in their supply chain. Companies struggle to drive alignment and build constancy of purpose.

Retail Scorecards Study 2014 - Summary Charts

Lora Cecere

Executive Overview Retail scorecards are now more than a decade old. The companies in this study had an average of more than five years of experience using retail scorecards. Buyers and suppliers now manage multiple scorecards simultaneously (in the same relationship) in trading partner communications. The most common scorecards are focused in the areas of supply chain. As with any relationship, there is always a carrot and a stick. A carrot, or an incentive to do better, is a positive reward system given to affirm good behavior; while a stick is a punitive action for an unwanted behavior. Today, in the administration of retail scorecards, they are more focused on deductions and the withholding of payment. The primary value of the retail scorecard is the improvement of on-time and in-full shipments. Both parties have the opportunity to use the scorecard to improve assortment and reduce total costs. Today, these opportunities are aspirational. Here we share the insights from the study and end with recommendations for both trading partners.

Supply Chains to Admire 2018 - Winners Summary Charts

Lora Cecere

The Supply Chains to Admire™ analysis is an annual study of supply chain excellence. Now in its fifth year of development, the focus of this research is to better understand supply chain performance and improvement of 655 publicly held companies in 28 peer groups for the period of 2010-2017. This year there are 31 winners! At the 2018 Supply Chain Insights Global Summit, winners from the analysis will share insights on driving supply chain excellence.

The Journey to Supply Chain 2030 - Silde Deck - 16 NOV 2016

Lora Cecere

Big data 2014 15-Summary Charts From Quantitative Study

Lora Cecere

Network of Networks Discussion and Charter Document

Lora Cecere

Digital Procure-To-Pay - Study Summary Charts - 15 AUG 2017

Lora Cecere

• Report Details: The research for this report was primarily conducted via an online survey from August 1, 2016 - January 27, 2017. Surveys were conducted among a mix of manufacturers, retailers, and wholesalers/distributors/co-operatives (n=114), including a focus on those who use B2B methods to process purchase orders AND have/plan to have a program to support digital procure-to-pay processes (n=45). • Objective: To identify the adoption levels of digital business-to-business (B2B) methods and determine the business benefits of digital procure-to-pay (P2P) processes. • Highlight: Overall for companies with more advanced digital procure-to-pay initiatives, the benefits of the program are as follows: improved visibility, process accuracy, and speed; better quality customer service; and lower cost.

Insights on Supply Chain Finance - 25 APR 2017 - report

Lora Cecere

Executive Summary The term ‘supply chain finance’ has different definitions on each continent. In Europe, it is often used to describe ‘tax efficiency’, or the design of the supply chain to reduce the burden of taxation of cross-border shipments. In many procurement organizations the term is often used to describe the use of favorable capital rates to finance downstream trade. In this study the focus is on the management of costs by either effectiveness of a Supply Chain Finance team or Supply Chain Center of Excellence, Sales and Operations Planning (S&OP) processes, Cost-to-Serve Analysis and Supplier Development efforts. For the supply chain leader, managing costs is job one. It is easier said than done. The supply chain is a complex system with interrelationships between growth, inventory, cost and complexity. Cross-functional processes, organizational focus, and access to data are critical to align and maintain cost effectiveness in this complex system called supply chain. We term this model the Supply Chain Effective Frontier. This is shown in Figure 2. When companies operate on the Supply Chain Effective Frontier they maximize the value of the firm . We measure value by either Price to Tangible Book Value or Market Capitalization. Figure 2. Supply Chain Effective Frontier As will be shown in this report, managing costs is a struggle for most companies. While 88% of companies have implemented Enterprise Resource Planning (ERP), the hard work of process evolution and maturity continues. In this report we share the current state of supply chains in managing costs, and then take a look at the processes and organizational design factors to evaluate the impact on cost management.

Improving Supplier Reliability -15 June 2016 - Report

Lora Cecere

Supply Chain Talent Study - July 2017 - FINAL Summary Charts

Lora Cecere

Autonomous webinar final deck

Lora Cecere

The supply chain of the future will accelerate due to assistance from autonomous technologies and processes. These are slides from our webinar Supply Chain and the Autonomous World webinar featuring special guests Jim Lawton, Chief Product and Marketing Officer, Rethink Robotics and Andy Souders, SVP Products and Strategy IoT/Big Data, Savi Technology, as they join Lora to discuss the impact of technologies such as robotics, self-driving vehicles, wearable devices, cognitive learning, 3-D printing and other evolutions on current and future supply chains.

Reinvigorating Your Investment in SAP APO Forecasting - Slide Deck from Tools...

Lora Cecere

Slide Deck from the webinar The odds of achieving successful outcomes when using enterprise demand management technology for supply chain planning are the same as a flip of the coin. Why? The programs are just too labor intensive and the engines are not fit for purpose. The odds improve when optimizers are added to increase the output from ERP systems like SAP and Oracle. In this webinar, we share insights on the benefits of using an optimizer for SAP. Gain insights from Lora Cecere, Founder of Supply Chain Insights, and Gerrott Faulkingham from ToolsGroup on the steps to take to reinvigorate your demand planning system.

S&OP and Demand Management 2016 Summary Charts - 16 AUG 2016

Lora Cecere

Summary: S&OP and Demand Management Study Summary Charts. Based on an online survey conducted by Supply Chain Insights (February 12-May 26, 2016). The objective of the survey was to understand the current state of decision-making processes (S&OP and demand management were the focus) and their respective technologies. The results are among 79 respondents: manufacturers, distributors, and retailers who are familiar with the S&OP and/or demand management processes at their company.

Redefining the Supply Chain Opportunity

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Next Generation Supply Chain Thinking - slide deck - 6 DEC 2016

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Training Options to Build Next-Generation Talent

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S&OP 2015 Preliminary Summary Charts

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Presentation on the Future of Supply Chains at Transplace Conference in San A...

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Cross-Survey Analysis 2012-2015 - 28 Studies - Summary Charts - 17 MAR 2016

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Supply Chain Talent Study - MARCH 2017 - Preliminary Summary Charts

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Supply Chain Finance Fundamentals - What It Is, What It's Not and How It Works

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Driving a Customer-Centric Supply Chain - 7 NOV 2016

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Retail Scorecards Study 2014 - Summary Charts

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Supply Chains to Admire 2018 - Winners Summary Charts

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The Journey to Supply Chain 2030 - Silde Deck - 16 NOV 2016

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Big data 2014 15-Summary Charts From Quantitative Study

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Next Generation Supply Chain Thinking - slide deck - 6 DEC 2016

Training Options to Build Next-Generation Talent

S&OP 2015 Preliminary Summary Charts

Presentation on the Future of Supply Chains at Transplace Conference in San A...

Case Studies on the End-To-End Journey - Slide Deck - 30 MAR 2016

Cross-Survey Analysis 2012-2015 - 28 Studies - Summary Charts - 17 MAR 2016

Supply Chain Talent Study - MARCH 2017 - Preliminary Summary Charts

Supply Chain Finance Fundamentals - What It Is, What It's Not and How It Works

Driving a Customer-Centric Supply Chain - 7 NOV 2016

Retail Scorecards Study 2014 - Summary Charts

Supply Chains to Admire 2018 - Winners Summary Charts

The Journey to Supply Chain 2030 - Silde Deck - 16 NOV 2016

Big data 2014 15-Summary Charts From Quantitative Study

Network of Networks Discussion and Charter Document

Digital Procure-To-Pay - Study Summary Charts - 15 AUG 2017

Insights on Supply Chain Finance - 25 APR 2017 - report

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Supply Chain Talent Study - July 2017 - FINAL Summary Charts

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

Lora Cecere

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.

Using New Forms of Analytics - Slide Deck

Lora Cecere

There is no debate that the amount of data collected by companies is increasing. By tracking transactions, customer data, supplier costs, and other business metrics companies can understand what’s really happening inside the organization. But how do you ensure you’re tracking the right data, and in the right way to create a winning strategy? In this webinar we spoke with Kyle Hamm, VP, Chief of Staff to CSCO and EVP GSC at Schneider Electric, where he shared his thoughts around maximizing the value of big data.

The Journey Towards Supply Chain Excellence. So What? Who Cares? - Webinar Sl...

Lora Cecere

The Journey Towards Supply Chain Excellence. So What? Who Cares? It’s the nature of supply chain leaders to be competitive and improve processes, however it’s not always their nature to know how to start and progress on the journey. Often leaders think, “So What? Who Cares?” and accept the status quo. In this webinar we’ll discuss the reasons why this should be mission critical and how leaders can start on their journey towards improving performance. Webinar Slide Deck - 57 minutes - recorded on September 21, 2016.

State of Business Networks in Process Industries 2014 - Summary Charts

Lora Cecere

Executive Summary Today, the performance of an organization hinges more than ever on the effectiveness of flows between, and amongst, trading partners. It is not easy. The supply chain is not linear, and the relationships extend across geographic borders and industry sectors. Outsourcing relationships have grown in the last decade; however, the automation of these networks has not kept pace. In the words of one respondent interviewed for this report in a facilitated workshop to review the data, “Today, we connect trading partners through spreadsheets, email, phone and fax. It is antiquated. I liken it to baling wire, chewing gum and duct tape. I need solutions that can synchronize and harmonize data across trading partners in real-time. My operating committee does not think that it is sexy to invest in B2B solutions, but it is needed. Today, it is almost impossible for us to understand the manufacturing status of purchase orders, and have accurate information readily on supply chain visibility of in-transit shipments. As a result, we make the wrong decisions, and have unnecessary wait times to get information.” These comments echo the findings in this study. Respondents operate value networks, but they struggle to get to the data they need. The outsourcing of logistics is greater than manufacturing. Eighty-one percent of companies outsource logistics. The volume of outsourced logistics is 48% on average. In contrast, 66% of companies outsource manufacturing. The outsourced volume manufacturing volume varies, but averages 15%. While the networks are complex, and the goals are many, progress is hard to track. This leads many supply chain leaders to ask, “What is the current state? What is the opportunity?” Answering these questions is the goal of this report. Let’s start with the current state. As seen in Figure 2, the average respondent in this report believes that the supply chain today is more controlled and global than compared to two years ago. While they have made improvements in agility and proactivity, there is much more left to do. The largest challenges are in the use of outside-in data to improve channel sensing and reduce risk. While the supply chain today has made progress in transactional efficiency, companies are less competent at sensing opportunities and mitigating risks.

Organizational Alignment Study-Summary Charts-May 2013

Lora Cecere

Healthcare Study - Feb-Apr 2013 - Healthcare Provider Summary Charts

Lora Cecere

How Do We Heal the Healthcare Value Chain? Over the last decade, as shown in figure 1, the hospital supply chain has been one of the few that has improved operating margin, reduced inventory and improved revenue/employee. In contrast, the manufacturing suppliers to the hospital organization have grown inventories and struggled to preserve margins. Across the value chain from the patient to the raw material suppliers, total inventories have grown and costs have escalated. With pending regulations, hospitals are being forced to rethink processes, redefine value and work more holistically to improve sourcing practices. The suppliers to the hospital systems are having to rethink their systems to rethink the customer (from selling to the physician to selling to a more formal buying organization based on patient outcomes) and adapt to the new processes within the hospital for value analysis. Supply chain processes within the hospitals have matured. Hospitals have made more progress on improving cash-to-cash cycles than their upstream manufacturing trading partners. They have reduced inventories and attempted to work with suppliers. As shown in figure 2, it is notable to see that this industry is one of the few where downstream trading partners have actually improved payable terms for their suppliers. The future lies before the healthcare provider. As the provider of patient care, they have the greatest potential to lead in the healthcare value chain’s redesign to improve value. They have come a long way, but the changes have been incremental. They have focused primarily on traditional sourcing techniques; not a redesign of the healthcare value chain from the outside in, and the redefinition of complex and antiquated processes.

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What Is the Value Proposition of Sales and Operations Planning? Summary Charts

Lora Cecere

Survey Details: The research for this report was conducted online from January 6 - September 14, 2015 by Supply Chain Insights. Surveys were conducted among Manufacturers and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who have at least one S&OP process (n=73). For the purpose of analysis, respondents were split between those with a self-reported "effective" S&OP (n=31) and those without (n=42). Objective: To understand the value proposition of an effective S&OP (Sales and Operations Planning) process. NOTE: An S&OP process was defined as a "tactical planning process to forecast sales and plan operations." Highlight: Companies with a more effective S&OP process are more aligned, agile and balanced, which leads to greater control and improved response.

EDI: Workhorse of the Extended Supply Chain

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ORTEC US

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