scm analytics report

ANote To The Readers:

In a rapidly growing globalized market when more and more companies are

trying to expand their business across the borders, increasing pressure of

demanding customers, growing cost of raw material, manufacturing, logistics,

labor and need to adopt ever-advancing disruptive technologies are putting

tremendous pressure on the companies to reinvent their supply chain processes

and change the way they look at their value chain.

As they rightly say- “If you can’t see it, you can’t measure it and if you can’t

measure it, you can’t control it.” In order to achieve substantial cost reductions

in various supply chain areas, executives in some of the successful companies

have not only understood the importance of analytics but they have also

leveraged the technology to deploy analytics in different supply chain

processes and that has definitely played a transformational role in the evolution

of the modern form of supply chain.

This report is a summarized result of the survey we conducted in June 2015.

The survey was sent to 487 supply chain professionals working with the

companies like Fossil, 3M, CISCO, Conagra Foods, Colgate Palmolive, Bio

Rad, SABMiller etc. 206 people responded to the survey. The purpose of this

survey was to gain insight into some of the common supply chain challenges

being faced by the companies across various industries, their priorities in

regards to various supply chain areas and the tools they are using to manage

their supply chains. This report also reveals how their supply chain team

members rate the different characteristics of their supply chains.

The survey consisted of following ten questions:

1. In your opinion, where does supply chain exist in the priority list

of your top organizational leadership?

2. Do you think your company is putting enough focus on supply

chain?

3. How do you think your supply chain ROI yield is meeting your

expectations?

4. Does your company has any formal S&OP / Demand forecasting

process in place?

5. Does your company has continuous process improvement

program in place?

6. Does your company has any skill-development program for your

supply chain employees?

7. Does your company has any Voice of Customer (VoC) program

in place?

8. How would you rank the following areas of your supply chain

on your priority list - S&OP, Inventory Management,

Purchasing, Supplier Capabilities, Manufacturing,

Warehousing, Logistics, Customer Service?

9. Which of these applications your does your company use: ERP,

CRM, SCM, SRM, Business Intelligence & Analytics, None?

Ten Questions:

10. How would you rate the following characteristics of your

supply chain on the scale of 1 to 5, 1 being the lowest and

5 being the highest rating- Agility, Visibility, Responsiveness,

Complexity, Sustainability, Security, Efficiency, Internal

Collaboration, External Collaboration, Automation, Cost,

Management Risk Management and Resilience.

Q1. In your opinion, where does supply chain exist in the

priority list of your top organizational leadership?

55% Respondents considered their supply chain as “very

important” in the priority list of their top organizational

leadership

30% Respondents thought it is important

15% Respondents thought it is not so important

The Analytics:

Q2. Do you think your company is putting enough focus on

supply chain?

55% Respondents thought their companies are putting enough

focus on supply chain

20% Respondents responded their companies are not putting

enough focus on supply chain

25% Respondents thought their companies are not putting any

focus whatsoever on the supply chain

Q3. How do you think your supply chain ROI yield is meeting

your expectations?

5% Respondents responded their supply chain is exceeding

their expectations in terms of ROI yield

60% Respondents responded their supply chain performance

is meeting their expectations

35% Respondents responded their supply chain was under

performing in terms of ROI yield

Q4. Does your company has any formal S&OP / Demand

forecasting process in place?

75% Respondents responded their companies have a formal

S&OP/ Demand forecasting process in place

20% Respondents responded their companies do not have

formal S&OP/ Demand planning process

5% Respondents responded their companies do not have any

S&OP/ Demand forecasting in place

Q5. Does your company has continuous process improvement

program in place?

75% Respondents responded their companies do have

continuous process improvement program in place


continuous process improvement program in place

Q6. Does your company has any skill-development program

for your supply chain employees?

60% Respondents responded their companies have skills

development programs for their supply chain employees


skills development programs for their supply chain employees

in place

Q7. Does your company has any Voice of Customer (VoC)

program in place?

55% Respondents responded their companies do have Voice

of Customer (VoC) program in place


Voice of Customer (VoC) program in place

Q8. How would you rank the following 8 areas of your supply

chain on your priority list - S&OP, Inventory

Management, Purchasing, Supplier Capabilities,

Manufacturing, Warehousing, Logistics, Customer

Service?

We used the weighted average method to rank the responses to

this question:

Customer service topped the list with weighted average score

of 6.00.

S&OP ranked second with weighted average score of 5.20

Inventory Management ranked third with weighted average

score of 5.15.

Manufacturing ranked fourth with weighted average score of

4.50

Purchasing ranked fifth with weighted average score of 4.25

Logistics ranked sixth with weighted average score of 3.95

Supplier Capability & Performance ranked seventh with

weighted average score of 3.50

Warehousing remained at the bottom of the list with weighted

average score of 3.45

45% Respondents considered Customer Service as their top

priority

30% Respondents considered S&OP as their top priority

10% Respondents considered Inventory Management as their

top priority

10% Respondents considered Manufacturing as their top

priority

5% Respondents considered Warehousing as their top priority

None of the respondents considered Purchasing, Logistics,

Supplier Capabilities & Performance as their top priority

Q9. Which of these applications your does your company use:

ERP, CRM, SCM, SRM, Business Intelligence &

Analytics, None?

85% Respondents reported their companies using ERP

50% Respondents reported their companies using CRM

60% Respondents reported their companies using SCM

30% Respondents reported their companies using SRM

50% Respondents reported their companies using BI &

Analytics

5% Respondents reported that their companies were not using

any of the above applications

Another interesting fact that we discovered while analyzing the

combinations of applications being used by various companies

through these responses are:

85% of these companies are using some kind of ERP

application

20% of these companies are using all five applications

20% of these companies are using only ERP application

15% of these companies are using ERP, CRM and SCM

applications

50% of these companies are using some kind of Business

Intelligence &Analytics applications

5% of these companies are using ERP, CRM, SCM and SRM

applications but no BI &Analytics

5% of these companies are using none of these applications

Q10. How would you rate the following characteristics of your

supply chain on the scale of 1 to 5, 1 being the lowest and

5 being the highest rating- Agility, Visibility,

Responsiveness, Complexity, Sustainability, Security,

Efficiency, Internal Collaboration, External

Collaboration, Automation, Cost, Management Risk

Management and Resilience?

We used the weighted average method to rank the responses to

this question:

Supply chain complexity topped the list scoring 3.65

weighted average

Supply chain cost management ranked second with a

weighted average score of 3.50

Supply chain visibility ranked third with a weighted average

score of 3.25

Supply chain responsiveness scored a weighted average of

3.20 and ranked fourth

Supply chain agility ranked fifth with a weighted average

score of 3.15

Supply chain internal collaboration also scored a weighted

average of 3.15 but we put it on the sixth rank, ranking it

lower than supply chain agility on the basis of the fact that

15% respondents put supply chain agility on the top of their

list Vs. 10% who put internal collaboration

Supply chain security, risk management and resilience all

scored a weighted average of 3.10 but ranked seventh, eighth

and ninth

Supply chain sustainability, efficiency and external

collaboration all scored a weighted average of 3.05 and

ranked tenth, eleventh and twelfth

Supply chain automation scored a weighted average of 2.95

and was placed at the bottom of the list

About Touchstone ITS:

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