customer-centric study 2016 - summary charts

Customer-Centric StudySummary ChartsAugust-October 2016

Supply Chain Insights LLC Copyright © 2016, p. 2

Agenda

Study Overview

Supply Chain Organization

Customer-Centric Supply Chain

Order Management


Study Overview


Most Respondents Are Manufacturers, Primarily in Process Industries with $4.5B Average Revenue


The Most Common Industries Represented Are CPG and Food & Beverage


Nearly All Work in a Supply Chain Role,Nearly Half Are Director or Higher,

and About Half Are Based in the Americas


Agenda

Study Overview



Order Management


Most Have a Supply Chain Organization, with an Average of Seven Functions Reporting into It


The Most Common Supply Challenges Include Needing Improvement, Being Cautious, and Functioning Inside-out


Top Elements of Business Pain Include Demand/Supply Volatility, Alignment, Supply Chain Visibility and Data Access


Agenda

Study Overview



Order Management


Distributors Are the Most Common Customer Type, but Bricks & Mortar Retailers Are More Often the Primary


“Customer-Centric” Means Meeting Customer Needs, Driving Customer Value, Improving Customer Satisfaction

and Being Flexible


Less Than Half Rate Their Supply Chain Overall as Being “Customer-Centric”


Respondents Credit Service, Partnership, Satisfaction, and Adaptability for Their Success at Being “Customer-Centric”


Respondents Blame Culture, Cost, Silos, and a Lack of Planning for Their Difficulties Being “Customer-Centric”


A Majority Report Having a Strategy for Developing a Customer-Centric Supply Chain for Customers


Respondents Have Three Customer Types on Average and a Customer-Centric Strategy for Two on Average


Three-Quarters Have a Customer-Centric Strategy for Their Primary Customer and Over Half Report They Are

Customer-Centric


Supply Chains Are More Customer-Centric for Primary Customers Than Other Customers


Most Important Elements to Becoming Customer-Centric Include Executive Team Understanding, Product Quality,

and Sales-Operations Alignment


Sales-Operations Alignment and New Product Launch Reliability Are Important but Low-Performing Elements

Towards Becoming Customer-Centric


Greatest Performance Gaps in Elements to Being Customer-Centric Are Extended Network Visibility, Item Complexity, and

Sales-Operations Alignment


Most Common Customer-Centric Practices Are Scorecards and Customized Products/Services


Scorecards Are the Most Common Practice, but Customized Products/Service and CPFR Are Most Important


Cost-to-Serve Analysis Is the Primary Customer-Centric Policy That Is Important but Under-Performing


Greatest Performance Gaps for Customer-Centric Practices Is for Cost-to-Serve Analysis


Agenda

Study Overview



Order Management


Phone, email, fax or postal mail

Spreadsheets

EDI / XML - with MINIMAL intervention

Enterprise Web Portals

EDI / XML - with MANUAL intervention

Vendor Managed Inventory (VMI)

ERP plus Value-Added Networks (VANS)

Business Networks or Industry Process Hub

68%

48%

45%

43%

41%

36%

16%

11%

29%

4%

21%

13%

18%

5%

2%

2%

Customer Order Types for Primary Customer: Use and Most Common

Most Common

Use3 on average

EDI/XML (electronic data interchange):

66% use50% most common

Top Three Order Types Are Phone/Email/Fax/Mail, EDI/XML, and Spreadsheets

_________________________________________Source: Supply Chain Insights LLC, Customer-Centric Supply Chain Study (Aug-Oct, 2016)Base: Manufacturers, Distributors, 3PLs who sell physical products (n=56)Q25. Which of the following types of customer orders does your company typically process for your primary type of customer? Please select all that apply. Q26. Which ONE of these customer order types is most common at your company?


Most Common Order Type for Primary Customer Is Phone/Email/Fax/Mail


While Nearly Half Use Spreadsheets to Process Order, They Are Only Used for Six Percent of Orders on Average


Average Order Cycle Time Is Eight Days for Most Common Order Type for Primary Customer – a Decrease for Half of Respondents


Order Cycle Times Decrease Due to Improved Planning, Efficiency, and Requirements and Increase Primarily Due to

Order Rates


An Average of Two Order Characteristics Get Discounts, Primarily Full Truckloads and Full Pallets