Etude PwC sur la supply chain (2012)

Global Supply Chain Survey 2013
This year’s global supply chain survey by
PwC shows how Leaders are moving ahead
of the pack. They’re tailoring their supply
chains to customer needs and investing in
next-generation capabilities while keeping
the focus on supply chains that are both fast
and efficient.

Next-generation
supply chains
Efficient, fast and
tailored

www.pwc.com/GlobalSupplyChainSurvey2013

Contents Executive summary

Successful management of extreme But even with this kind of innovation
Executive summary 3 Macroeconomic cycles market and demand volatility has available to enhance efficiency, supply
become the new mantra of supply chain executives everywhere face
Introduction 6 of growth, contraction chain managers around the globe. some tough challenges. So, how are

Detailed survey findings 8 and recovery have Macroeconomic cycles of growth,
contraction and recovery have become
they handling them? In this report we
share the findings from our ninth and
become erratic. Together erratic, making reliable end-to-end largest-ever global supply chain survey.
Industry-specific dashboards 20
with natural disasters supply and demand planning
increasingly challenging. Disruptions
We’ve drawn on the insights of more
than 500 supply chain experts in
About the survey 32 that affect both caused by recent natural disasters Europe, North America and Asia, from
Acknowledgements 33 operations and sales, have added to supply chain volatility. companies of all sizes and across a
wide range of industries. We’ve also
Related reading 34 they have made reliable In business-to-business relationships, picked out two groups of companies
end-to-end supply and long-term loyalty and predictable order
flow seem to have become relics of the
and compared their performance.
The Leaders, as we’ve called them,
demand planning past. At the same time, customers are have consistently outperformed their
increasingly challenging. tightening their requirements in terms
of throughput time and perfect-order
peers, while the Laggards have
consistently underperformed —
delivery while demanding continuous both financially and operationally.
reductions in supply chain cost.
The Leaders in our survey point to
The increasing use of online channels the future. They have supply chains
is driving the reduction of response that are efficient, fast and tailored —
times and forcing supply chain a model that lets companies serve their
managers to find new answers for customers reliably in turbulent market
global micro-delivery of multiple conditions and that differentiates
small-customer orders, instead of between the needs of different sets of
the large-batch movements. customers. We’ve come up with six key
More than 500 findings that point the way towards
Maximising supply chain flexibility how they do it.
participants from and managing multiple supply chain
manufacturing configurations have become the new
imperatives for today’s supply chain
and service industries executives. In addition, radio-
contributed to frequency identification (RFID) and
other digital technologies lead to new
this year’s survey, frontiers in supply chain transparency
with data collected and process automation. Those
technologies enable multiple supply
from May to chain partners along the value chain
July 2012. to seamlessly interact in the joint
design, manufacture, delivery and
service of complex customer orders.

2 Next-generation supply chains: Efficient, fast and tailored Next-generation supply chains: Efficient, fast and tailored 3

Figure 1: 45% of the participants acknowledge that supply chain is seen
as a strategic asset in their company [% of participants]

9% 9%
Technology and Telecom 56
Automotive 50
Industrial Products 46

Six key findings from PwC’s
Chemicals and Process 43
46%
Pharmaceuticals 41
and Life Sciences
36%

Global Supply Chain Survey 2013
Retail and Consumer Goods 40
Other 26

Our supply chain…
… supports the company in constantly outperforming the market
… is at an advantage to peers
… is at parity with industry peers
… is at a disadvantage to industry peers

Source: PwC, Global Supply Chain Survey 2013

2 Leaders focus on
best-in-class delivery,
cost and flexibility to meet

1 3
increasingly demanding The Leaders have succeeded in coping But they keep core strategic functions Finding 6: Interest in next-
You can have it all: One size does not fit all:
companies that customer requirements Leaders tailor their with those challenges by focusing on such as sales and operations planning generation technologies and
acknowledge supply supply chains to the three key drivers: perfect order (SOP), strategic procurement and sustainable supply chains is growing
chain as a strategic needs of different delivery, cost reductions and supply research and development (RD)
asset achieve 70% customer segments The existing suite of innovative supply
higher performance chain flexibility. They’ve invested in in-house.
chain technologies includes RFID and
new tools and technologies, built
They also manage most core strategic other digital capabilities, new visibility
extensive supply chain networks
functions centrally while steering more and statistical decision tools and
to maximise the flexibility and
than three-quarters of their manufac- technology to facilitate further process
responsiveness of their supply chains
turing and logistics activities regionally. automation and efficiency. Many
and simplified their processes
Regional manufacturing and distribu- companies aren’t yet taking advantage
wherever possible. That’s helping
tion give them greater flexibility and of all those possibilities. But that looks
them respond to customers, whose
make it easier for them to respond to set to change: more than half of all
requirements are becoming
local customer requirements. respondents say they’re implementing,
increasingly demanding.
or they plan to implement, new tools to
Finding 5: Leaders in mature improve visibility and provide more
Finding 3: One size does not fit
and emerging markets invest more process automation. Those in the
all: Leaders tailor their supply
heavily in differentiating supply Pharmaceuticals and Life Sciences,
Interest in Leaders outsource chains to the needs of different
next-generation production and delivery chain capabilities Technology and Telecom and Retail

4
customer segments

6 technologies and
sustainable supply
chains is growing
Leaders in mature and
emerging markets
but retain global control
of core strategic
functions
The Leaders recognise that one size
Most companies have implemented the
basic capabilities required to deliver
and Consumer Goods industries plan
to make particularly significant

5
does not fit all. They’ve created investments in those areas over the
invest more heavily in efficiently and cost-effectively. Leaders
differentiating supply different supply chain configurations next couple of years.
have gone much further than only
chain capabilities for different customer segments by
mastering the basics. They’ve also More than two-thirds of all
using distinct processes and supply
introduced differentiating processes, respondents also say sustainability will
networks to offer different levels of
such as integrated real-time demand- play a more important role in the
service at different prices. They’re also
Finding 1: You can have it all: line; the Leaders in our survey enjoy Finding 2: Leaders focus on and-supply planning with key suppliers supply chains of the future. A number
more focused in the ways they go to
companies that acknowledge supply average earnings before interest and best-in-class delivery, cost and and customers, effective supplier and of companies have already started
market: 35% use only one channel,
chain as a strategic asset achieve taxes (EBIT) margins of 15.6%, whereas flexibility to meet increasingly partner management or tax-efficient (1) investing in technologies to reduce
whereas 80% of the Laggards have
70% higher performance the Laggards can manage only 7.3%. demanding customer requirements supply chains. their carbon dioxide emissions and
more than one. Clear channel focus,
That includes supply chain Leaders (2) excluding any supply chain
Companies that beat the competition on But, surprisingly, only 45% of Supply chain executives are coping while configuring the supply chain
from the emerging markets. They have partners that don’t adhere to the
supply chain performance also achieve respondents say their companies view with a wide range of challenges, to meet the needs of individual
rapidly adopted best-in-class practices highest ethical standards.
significantly better financial results. the supply chain as a strategic asset, and with profitability and cost management customers, has proved to be a
and avoided the painfully slow But such examples are not yet
Supply chain Leaders deliver on time in just 9% say the supply chain is helping topping the list, followed by supply winning formula.
development process used by many widespread — aspirations tend to
full (OTIF) on 95.7% of occasions and them outperform their peers. That chain flexibility and the need to Finding 4: Leaders outsource exceed action unless there is a clear
have an impressive 15.3 inventory needs to change, because better supply meet customer requirements. But of the traditional-market companies.
production and delivery but cost reduction benefit or regulatory
turns, while the Laggards achieve only chain efficiency has a measurable those represent just the tip of the And many emerging-market Leaders
retain global control of core requirement being met.
3.8 turns. That means greater efficiency impact. Supply chain managers across iceberg — adapting to competitive are now leading the way by introducing
strategic functions
and customer satisfaction without the globe need to step up to their top pressures, volatility, skills gaps, new and innovative supply chain
driving up working capital — management and claim their rightful sustainability — because the range of The Leaders typically outsource about practices to the global supply chain
essentially, having it all. Those are place as one of the major elements in increasingly important trends that 60% of their warehousing and logistics community, especially in the areas
metrics that really impact the bottom the success — or failure — of affect supply chain success is wide. activities and nearly 50% of their of supply chain flexibility and
their company. manufacturing and assembly activities. cost efficiency.


Introduction

In our ninth — and largest-ever — global supply
chain survey, we heard from over 500 executives
around the world which key trends they see
reshaping the supply chain.

The need to cope with a whole range and the Laggards are illuminating.
of supply chain challenges is putting The most-successful companies have
greater pressure than ever on supply configured their supply chains for
chain executives. In our ninth — and specific customer segments, adopted
largest-ever — global supply chain differentiating practices such as
survey, we heard from over 500 collaborative planning with customers
executives around the world which key and suppliers and reduced complexity.
trends they see reshaping the supply
chain. Coming from companies large The Leaders in our survey point to
and small, across a wide range of the future. They have next-generation
industries, our respondents shared supply chains that are fast, flexible
details of their operating models and and responsive — a model that
the practices their companies are enables companies to serve their
using, outlined the ways they’re customers accurately and efficiently
organising their supply chains and in turbulent market conditions and
described the levers they’re pulling differentiates between the needs of
to maximise the value of those different sets of customers.
supply chains.
We’ve discussed our main findings in
We’ve supplemented this research with the following pages. We’ve also included
a comparison of two distinct cohorts six dashboards with details of how
of companies: those in the top quintile well the supply chains of companies in
and those in the bottom quintile (per different industries perform, how those
industry sector), measured in terms of supply chains are typically organised
financial and operational performance. and the value drivers that matter most.
The differences between those Leaders


Detailed survey findings

Finding 1: Companies that focus on improving Perhaps more important, Leaders show Our analysis suggests that the
Figure 2: Companies that focus on improving their supply chain performance
You can have it all: their supply chain performance achieve that it’s possible to deliver orders very importance of the supply chain is consistently outperform their peers financially
companies that acknowledge much better financial and operational efficiently without driving up still insufficiently recognised in the
supply chain as a strategic results than their peers do. The top their working capital, which refutes boardroom. In fact, even supply chain Average EBIT margin (%) Average delivery Average inventory
asset achieve 70% companies we surveyed deliver the still widely held belief that executives themselves usually don’t Opportunity performance (OTIF) (%) turns per year (#)
Opportunity Opportunity
higher performance OTIF at 96% compared with 89% on delivery performance is a function of realise the full value they bring to their
average. In addition, they have 87% inventory. More than half of them organisations, or they don’t promote +30% +8% +87%
more inventory turns per year than deliver OTIF more than 95% of the that value sufficiently to the C-suite.
companies with average results do. time and have more than 15 inventory That’s because most supply chain
That doesn’t just mean more satisfied turns a year — evidence that delivery executives are focusing on the
customers. It directly affects the performance is the product of a day-to-day aspects of establishing and
bottom line: Leaders also enjoy 30% mature supply chain set-up, processes managing an end-to-end supply chain
higher EBIT margins than the average and systems. By contrast, 96% of the and fostering collaboration both with
(see Figure 2). Laggards in our survey are supply other functions and within the supply 7 12 16 79 89 96 4 8 15
chain rookies. Their delivery chain itself. But taking the time to Laggards Average Leaders Laggards Average Leaders Laggards Average Leaders
performance, inventory turns and EBIT promote the importance of the supply
margins are much lower than those of chain can have significant benefits. Source: PwC, Global Supply Chain Survey 2013
the Leaders (see Figure 3).
Once the C-suite recognises that a
mature supply chain is truly a source of
important competitive advantage, it Figure 3: Leaders deliver on time in full more frequently and simultaneously optimise
will be easier to persuade executives to their working capital
make the investments needed to bring
supply chains up to the next level. 98 Delivery heroes Supply chain top performers

Delivery performance (%)
1 18 0 53

Laggards Leaders Laggards Leaders
95
Supply chain rookies Working capital optimisers

96 3 3 26

Laggards Leaders Laggards Leaders
75
1 15 20
Inventory turns (#)
% of Laggards % of Leaders



Figure 5: Leaders pull seven levers to maximise the value of their supply chains

Complexity management
Maximum delivery

Supply chain
value driver
performance Maximum volume
flexibility and Tax optimisation
Minimised risks and efficiency
responsiveness
Minimised costs Sustainability

PATH TO SUPPLY CHAIN VALUE CREATION

Value creation
Activated value drivers


Finding 2: Supply chain executives see increasing Staying resilient is one way to cope
Leaders focus on best-in-class the profitability of their companies’ with customer requirements. Nearly
delivery, cost and flexibility to supply chain and reducing total supply two-thirds of supply chain executives
meet increasingly demanding chains costs as their top priorities say they’ll need to build in greater
customer requirements (see Figure 4). In addition, more than flexibility to respond to shifts
two-thirds say it’s vital to meet the in volume. Here, too, the importance
requirements of customers, who are will increase by 2015, which is
Indeed, the war for talent is already in years to implement. But they provide volume flexibility in their internal
becoming more demanding about the consistent with the shift we noted
full swing. Nearly three-fifths of our much greater transparency and manufacturing or shift models,
delivery performance, flexibility in our 2010-2012 trends report.
survey respondents see the acquisition process automation throughout the improving supply-and-demand
and service levels they expect. And
or development of supply chain talent entire supply chain, so they can help balancing and collaborating closely
awareness of the need to keep up with That’s only the beginning of the
and skills as essential to their current reduce costs and increase efficiency. with their partners. They make sure
customer demands is increasing; challenges supply chain executives face.
success. Even more rate it as important Hence the fact that many supply chain their supply chains are responsive
that number will jump to 78% by Respondents see a whole range of trends
for 2013-2015. Some companies have executives now regard them as vital. and that volatility risks are shared
2015. As one respondent put it, “We’re as increasing in importance, from the
responded by establishing dedicated with partners and suppliers.
juggling multiple supply chain balls need to respond to competitive
supply chain academies to train their So, in light of all these challenges,
faster and faster and just hope that pressures and ensuring supplier
own staffs. They’re also offering what priorities are Leaders setting to Once they’ve pulled those three levers,
none of the efficiency or customer performance through to concerns over
attractive compensation and benefits maximise the value of their supply the Leaders tend to focus on reducing
satisfaction balls drops to the ground.” risk and skills (see Figure 4).
packages to acquire and retain chains? As Figure 5 shows, many of risk and managing complexity. Just
successful supply chain managers. them have focused on the same values how do they do it? One way is by (1)
drivers, and it’s the first levers that working together with RD and sales
Figure 4: Costs, profitability and increasingly demanding customers top the agenda
Respondents say supply chains also provide the highest impact. executives to reduce the number of
need to support demand growth in product platforms and variants and
% increase by
Significant1 supply chain trends in 2013 [%] In 2013-20152 [%] 2015 vs. 2013 emerging markets and be more The two levers that create the highest (2) consistently pruning obsolete
sustainable. Most companies have so value are maximising delivery components. This results in lower
Managing profitability of total supply chain 79 8 +10%
far devoted relatively little effort to the performance and minimising supply inventories and reduced supply chain
Reducing total supply chain cost 80 5 +6%
idea of the sustainable supply chain, chain costs: 90% of all Leaders have complexity. In addition, the Leaders
Meeting increasing customer requirements 69 10 +14% largely because their customers seem achieved a delivery performance of manage key suppliers more
Preparing supply chain for up/downwards volume flexibility 64 9 +14% unwilling to pay for it. But the more than 96%, thanks to integrated professionally, automate supply chain
Responding to competitive pressures 61 11 +18% importance is now rising sharply — supply chain planning, throughput/ processes that can be automated and
Acquiring and developing supply chain talent and skills 58 11 +19%
one-third more respondents say cycle time reductions and optimisation switch from make-to-stock to make-
sustainability will play a major role of their buffer stocks. Many of them are to-order whenever possible. Finally,
Ensuring supply and supplier performance 60 9 +15%
in 2013-2015 compared with now. also using best-cost country sourcing the Leaders turn to reorganising their
Implementing techniques to automate and increase transparency 52 14 +26%
and lean management techniques and supply chains to minimise
Supporting demand growth in emerging markets 52 10 +19% All of these challenges present a lot are simplifying their processes in order tax exposure.
Managing supply chain security and risk 46 14 +31% to deal with at one time, but the to cut costs.
Making the supply chain more sustainable 42 14 +34% introduction of digital technologies such The result? The Leaders consistently
as RFID and process automation tools Maximising volume flexibility and achieve above-average supply chain
Responding to changing regulatory requirements 36 4 +12%
is likewise rising up the agenda. responsiveness comes next: 75% performance and financial results,
Importance increase by: 20% 10% and 20% 10%
Top 4 supply chain trends
Such technologies require massive of Leaders regard it as important. while the Laggards get bogged down
Source: PwC, Global Supply Chain Survey 2013 Remaining supply chain trends
investment and typically take several They’re creating value by increasing by ever-increasing supply chain costs,
Notes
1 % participants who judge trend as critical or significant in 2013. complexities and inefficiencies.
2 % participants who say that trend is significant, critical or moderately important in 2013 and who say it will increase
by 2015, or who think that trend is critical or significant in 2013 and believe it will stay the same for the next two years


Clear channel focus, while configuring the supply
chain to meet the needs of individual customers,
has proved to be a winning formula.

Finding 3: More than 83% of all Leaders configure Of course, many organisations recognise That’s not the only difference between
Figure 6: Leaders configure their supply chains for different customer segments
One size does not their supply chains for different customer that different customers have different the Leaders and the rest of the survey
fit all: Leaders tailor their segments. And, on average, they use needs — and hence different supply population, though. The Leaders also
# supply chain configurations # channels # configurations per channel
supply chains to the needs of 55% more configurations per channel chain requirements, too. But it’s only have a clearly defined go-to-market
different customer segments than the Laggards do (see Figure 6). the Leaders that have started using approach: 35% focus on only one +40% -10% +55%
In other words, the Leaders recognise the concept of configuration to design channel versus 20% of the Laggards,
that one size doesn’t fit all. The demands their supply chains from the outside in. and on average, they generate 66%
imposed on a supply chain are as much This enables them to provide optimal more revenue per channel than
a function of the channel the supply services for a wide range of customers the other companies in our sample. 3.1 4.3 2.3 2.0 1.4 2.1
chain serves and of the requirements by making the best trade-offs between This suggests that critical mass is a Laggards Leaders Laggards Leaders Laggards Leaders
of the customers who use that channel, delivery performance, cost and prerequisite for creating tailored
as they are of the products a company flexibility to satisfy each customer supply chain configurations. Leaders operate Leaders are more focused Leaders operate up to
sells and the technologies the company segment (see Figure 7). So, supply more supply chain than Laggards because they 50% more configurations per
configurations operate in fewer channels channel than Laggards
uses. Each combination results in a chain configurations are major
different set of customer needs that elements in achieving superior supply
require a tailored solution. chain performance.

Figure 7: With different supply chain configurations, companies can make the best trade-offs to satisfy each customer segment

What is a supply chain configuration? Market characteristics Supply chain requirements Supply chain architecture
A supply chain configuration is a version of the supply chain that has been
optimised to meet the needs of a specific customer group. For example,

ts

Differentiated offering
Geography/Country

os
Supply chain configuration 1
a manufacturer might have two different supply chain configurations:

performance C
one for complex/high-end products and one for standard products. Each

Leaders:
Delivery
Supply chain configuration 2
configuration might serve the same customers and source from the same
suppliers by using different production locations and even, perhaps, different Supply chain configuration 3
distribution networks. Similarly, a manufacturer might have two different Flexibility/Responsiveness
transportation and logistics configurations: one with fast delivery times and a
higher cost for top customers and one with lower performance for price- Market/
Demand
conscious customers.

ts
os

One-size-fits-all
performance C

Laggards:
One-size-fits-all

Delivery
supply chain configuration

Product/ Channel/
Technology Market Flexibility/Responsiveness



Interesting to note is that on average,
Finding 4: As a rule, the Leaders in our survey recognising that lead times are parts of only 36% of manufacturing and assembly
Leaders outsource production manage core strategic activities such as the total cost of ownership. But both
and delivery but retain strategic procurement, SOP and new Leaders and Laggards use very similar
is being outsourced, indicating that
global control of core product development globally while organisational models, suggesting that functions like manufacturing and sourcing
strategic functions positioning production and delivery organisational models alone are not
regionally (see Figure 8). This allows main elements in higher performance.
remain cores of the supply chain and
them to maintain control over standards It is, rather, a company’s practices and keys to achieving tighter supply
and maximise synergies while capabilities that determine how well
remaining flexible and responsive the company’s supply chain operates.
chain integration.
to local needs.
While the outsourcing of supply chain
Many Leaders also use near-shoring functions has grown rapidly in the past
to keep prices competitive. And the years, our 2013 survey indicates that
most-advanced companies are the percentage of value creation participants do outsource are confined
Figure 9: Leaders and Laggards alike are very wary about outsourcing all functions
switching from low-cost country achieved by partners has reached a primarily to the areas of manufacturing but their manufacturing and distribution
sourcing to best-cost country sourcing, plateau. The activities that survey and distribution, and even then,
they’re very selective. Due to global % of supply chain activities outsourced 0 25 50
disasters in past years, some companies Demand planning 5%
have actually brought some supply Plan
SOP 2%
chain activities back, close to home, to
Figure 8: Leaders manage strategic functions globally and execute functions regionally reduce risks. Strategic procurement 5%
Source
Operational procurement 6%
Leaders’ organisational model Leaders’ geographic organisation Both Leaders and Laggards outsource
Manufacturing and assembly 36%
100% half of their transportation and Make 22%
46 76 New product development 70 30 Service
warehousing activities, regarding them
Strategic procurement 66 34 as commodities that can be handled by 11%
Customer order desk
45%
Supply chain centre of excellence 60 40 a partner. But they keep the customer Deliver Warehousing
SOP 49 51 order desk in-house to maintain control Inbound and outbound logistics

Manufacturing and assembly 38 63 over interaction with customers. And 12%
49%
New product development
they outsource only 36% of their Enabler
Demand planning 34 66 Supply chain centre of excellence
manufacturing and assembly activities, 7%
Customer order desk 24 76
suggesting that many companies still
54 24 Source: PwC, Global Supply Chain Survey 2013 Leaders Laggards
Service 24 76 see manufacturing as a core component
Strategic Execution
functions functions Operational procurement 22 78 of the supply chain and one of the vital
Warehousing 20 80 elements in achieving closer supply
Global Regional
Inbound and outbound logistics 18 82 chain integration (see Figure 9).
• Strategic functions: Demand planning, SOP,
% of global and regional functions
Strategic procurement, New product development,
Supply chain centre of excellence Global Regional
• Execution functions: Operational procurement,
Customer order desk, Inbound and outbound logistics, Regional: Regional and local functions
Manufacturing and assembly, Service Global: Global business unit (cross regional and cross enterprise)



Etude PwC sur la supply chain (2012)

Etude PwC sur la supply chain (2012)

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