supply chain centers of excellence study - summary charts - 2014 - 2015
TRANSCRIPT
Supply Chain Insights LLC Copyright © 2015, p. 1
Supply Chain Centers of Excellence Study
Summary ChartsOctober 2014 – March 2015
Supply Chain Insights LLC Copyright © 2015, p. 2
Agenda
Study Overview
Have a Center of Excellence
No Center of Excellence
Supply Chain Network Design
Alignment and Organization
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Most Respondents Are Manufacturers in Process orDiscrete Industries, with $7B in Revenue on Average
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Top Industries for Respondents Include ConsumerPackaged Goods, Food & Beverage and Chemical
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The Majority of Respondents Work in a Supply Chain Role,Primarily at the Director or Manager Levels
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Over Half of Respondents Have a Supply Chain Center of Excellence
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Two-Fifths Have Both a Supply Chain Center of Excellenceand a Supply Chain Network Design Group
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Agenda
Study Overview
Have a Center of Excellence
No Center of Excellence
Supply Chain Network Design
Alignment and Organization
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Those With a Center of Excellence Stand Out for HavingHigher Revenue, a Network Design Group and a
Self-Reported Agile Supply Chain
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Those With a Center of Excellence Stand Out for HavingHigher Revenue
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Respondents Have an Average of Two Centers of Excellenceand Have Had Any for an Average of Four Years
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Nearly Half Rate Their Primary Center of Excellenceas Effective
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Sample Responses to Why Supply Chain Center of Excellence Is “Effective”
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Sample Responses to Why Supply Chain Center of Excellence Is NOT “Effective”
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Sample Responses to What “Success” Meansfor Supply Chain Centers of Excellence
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Those with a Center of Excellence Report 19 Full-TimeEmployees and 2 Part-Time Employees Working in it
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Half Outsource Any of Their Center of Excellence Work;the Work Is Evenly Push vs. Pull
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The Leader of the Center of Excellence Primarily Reportsto the Supply Chain Leader, While the Supply Chain Leader
Primarily Reports to the CEO/President or COO
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Nearly Half Report That with Their Center of Excellence,Divisions Have the Power and Most Are Centralized
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The Prescriptive Approach Is the Most Commonfor Supply Chain Centers of Excellence
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Primary Areas for Center of Excellence Audits IncludeSupply and Demand Planning Maturity
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Primary Areas for Center of Excellence Audits IncludeSupply and Demand Planning Maturity
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Most Important and Top Performing Element of Centers of Excellence: Executive Support
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Most Important and Top Performing Element of Centers of Excellence: Executive Support
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Greatest Gaps in Center of Excellence Performance:Talent Management and Data Mining
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Those with a Center of Excellence Report Higher PerformanceThan Those without on Metrics Modeling, Network Design
and Executive Support
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Top Three Challenges for Centers of Excellence IncludeCross-Functional Alignment, Executive Team Understanding
and Change Management
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Agenda
Study Overview
Have a Center of Excellence
No Center of Excellence
Supply Chain Network Design
Alignment and Organization
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Of Those without a Center of Excellence, One-Tenth HadOne in the Past and Nearly Half Expect One in the Future
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Sample Responses to Why Do NOT Have a Supply Chain Center of Excellence
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Sample Responses to Why PLANNING to Have a Supply Chain Center of Excellence
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Most Important and Top Performing Elements of a Center of Excellence for Those without One:
Executive Support and Demand Planning Oversight
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Greatest Gaps in Areas for Those without a Center ofExcellence: Supply Chain Innovations and Network Design
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Agenda
Study Overview
Have a Center of Excellence
No Center of Excellence
Supply Chain Network Design
Alignment and Organization
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Over Half Have a Supply Chain Network Design Group
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Those with a Network Design Group Are More Likely toHave Higher Revenue, a Center of Excellence and a
Self-Reported Agile Supply Chain
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On Average, Seven People Work in Network Design, with 84% of the Work Done In-House
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Primary Drivers of Having Network Design Are Cost,Transportation, and Distribution/Inventory
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Sourcing/Manufacturing and Distribution FacilityFootprint Are Top Work Areas for Network Design
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Top Opportunities for Improvement Lie inCost to Serve and Inventory Optimization
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Agenda
Study Overview
Have a Center of Excellence
No Center of Excellence
Supply Chain Network Design
Alignment and Organization
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Top Team Alignment Reported for Sales & Marketing, Manufacturing & Procurement, and Finance & Operations
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Those with a Center of Excellence Report Higher AlignmentEspecially for Operations – with Finance, CSR & IT
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Those with a Network Design Group Report Higher AlignmentEspecially for Marketing & Finance
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Top Supply Chain Challenges Include Being Reactive,Tactical, Inside-Out and Fixed/Not Agile
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Those with a Center of Excellence Report Being More Strategic, Proactive, Aligned and Outside-In
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Those with a Center of Excellence or Network Design GroupDescribe Their Supply Chains More Positively
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Those with a Network Design Group Report Being More Proactive, Aligned and Strategic – But Less “Many”
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One-Quarter Report That Their Supply Chain Is “Agile”
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Those with a Center of Excellence Report HigherSupply Chain Agility
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Those with a Network Design Group Report HigherSupply Chain Agility