organizational alignment study-summary charts-may 2013
DESCRIPTION
Organizational alignment matters. There are 3 key techniques to improve alignment and combat supply and demand volatility: clear agility definition, sales and operations planning, and supply chain center of excellence.TRANSCRIPT
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Organizational Alignment Study:
Summary ChartsMay 2013
Supply Chain Insights LLC Copyright © 2013, p. 2
Agenda
Study Overview
Alignment
Agility
Sales and Operations Planning (S&OP)
Supply Chain Role
Finance Role
Information Technology (IT) Role
Supply Chain Insights LLC Copyright © 2013, p. 3
Study Overview
Supply Chain Insights LLC Copyright © 2013, p. 4
Results from 3 Functional Roles:Supply Chain, Finance and IT
Supply Chain Insights LLC Copyright © 2013, p. 5
Respondents from a Mix of Discrete and Process Manufacturing Companies
Supply Chain Insights LLC Copyright © 2013, p. 6
Top Industries Represented Include Consumer Packaged Goods, Food & Beverage
and High Tech & Electronics
Supply Chain Insights LLC Copyright © 2013, p. 7
Respondents in Supply Chain Roles Come from Companies with Higher Revenue,
$4.4B on Average
Supply Chain Insights LLC Copyright © 2013, p. 8
Those in Supply Chain Are Mostly Directors+; Those in Finance and IT Tend
to Come from Lower Roles
Supply Chain Insights LLC Copyright © 2013, p. 9
Those in Supply Chain Role Are More Likely Than Finance or IT to Have
Open Design Network with Suppliers
Supply Chain Insights LLC Copyright © 2013, p. 10
Those in Supply Chain or IT Roles Are More Likely to Report Having Either a Supply Chain orBusiness Intelligence Center of Excellence
Supply Chain Insights LLC Copyright © 2013, p. 11
Those in Supply Chain or IT Are More Likely to Have Corporate Social Responsibility Goals
Supply Chain Insights LLC Copyright © 2013, p. 12
Agenda
Study Overview
Alignment
Agility
Sales and Operations Planning (S&OP)
Supply Chain Role
Finance Role
Information Technology (IT) Role
Supply Chain Insights LLC Copyright © 2013, p. 13
Alignment between Manufacturing & Procurement Is Seen as Among the Most Important for All Three Roles
Supply Chain Insights LLC Copyright © 2013, p. 14
Alignment Is Most Apparent between Manufacturing & Procurement
and Sales & Marketing
Supply Chain Insights LLC Copyright © 2013, p. 15
Gaps in Alignment Are Among the Highestfor Sales & Operations and Sales & Marketing
Supply Chain Insights LLC Copyright © 2013, p. 16
For Supply Chain, the Largest Gap in Alignment Importance vs. Performance
Is for Sales & Operations
Supply Chain Insights LLC Copyright © 2013, p. 17
For Finance, the Most Important Areas forAlignment Are Among the Least Aligned
Supply Chain Insights LLC Copyright © 2013, p. 18
For IT, Two of the Largest Gaps in Alignment Importance vs. Performance Are for Sales & Marketing
and Manufacturing & Procurement
Supply Chain Insights LLC Copyright © 2013, p. 19
For Those in Supply Chain, Having a Centerof Excellence Means Greater Alignment forMarketing & Finance and CSR & Operations
Supply Chain Insights LLC Copyright © 2013, p. 20
For Those in Supply Chain, Having a Mature Agility Definition Means Greater Alignment
between Marketing & Finance
Supply Chain Insights LLC Copyright © 2013, p. 21
For Those in Supply Chain, Having Higher Agility Means Greater Alignment between Manufacturing
& Procurement, Sales & Operations and Operations & IT
Supply Chain Insights LLC Copyright © 2013, p. 22
For Those in Supply Chain, Having a More Mature S&OP Goal Means Greater Alignment between
Sales & Finance and Sales & Operations
Supply Chain Insights LLC Copyright © 2013, p. 23
For All 3 Groups, the Most Common Metrics IncludeOperating Margin, Cost of Goods Sold & Shipments
Supply Chain Insights LLC Copyright © 2013, p. 24
For All 3 Groups, 3 of the Top 5 Metrics IncludeOperating Margin, Shipments & Cost of Goods Sold
Supply Chain Insights LLC Copyright © 2013, p. 25
Those with a Supply Chain Center of ExcellenceAre Somewhat More Likely to Track Cost to Serve
Supply Chain Insights LLC Copyright © 2013, p. 26
Those with a Supply Chain Organization Are More Likely to Track Days of Inventory and Cost to Serve
Supply Chain Insights LLC Copyright © 2013, p. 27
Those with a S&OP Process Are More Likely to Track Operating Margin, Days of Inventory
and Volume Sold
Supply Chain Insights LLC Copyright © 2013, p. 28
Supply Chain Respondents Report 5 Most Important Metrics Are Operating Margin, Shipments,
Cost of Goods Sold, Days of Inventory & Volume Sold
Supply Chain Insights LLC Copyright © 2013, p. 29
For Supply Chain Respondents, the 5 Most Important Metrics Are Operating Margin, Shipments,
Cost of Goods Sold, Days of Inventory & Volume Sold
Supply Chain Insights LLC Copyright © 2013, p. 30
Finance Respondents Report 5 Most Important Metrics Are Operating Margin, Cost of Goods Sold, Shipments, Return
on Assets, Cash-to-Cash Cycle & Forecast Accuracy
Supply Chain Insights LLC Copyright © 2013, p. 31
Finance Respondents Report 5 Most Important Metrics Are Operating Margin, Cost of Goods Sold, Shipments, Return on Assets & Cash-to-Cash Cycle
Supply Chain Insights LLC Copyright © 2013, p. 32
IT Respondents Report 5 Most Important Metrics Are Operating Margin, Market Share,
Cost of Goods Sold, Shipments & Forecast Accuracy
Supply Chain Insights LLC Copyright © 2013, p. 33
IT Respondents Report 5 Most Important Metrics Are Operating Margin, Market Share,
Cost of Goods Sold, Shipments & Forecast Accuracy
Supply Chain Insights LLC Copyright © 2013, p. 34
Agenda
Study Overview
Alignment
Agility
Sales and Operations Planning (S&OP)
Supply Chain Role
Finance Role
Information Technology (IT) Role
Supply Chain Insights LLC Copyright © 2013, p. 35
The Most Common Definition of “Supply Chain Agility” for All 3 Groups Is
Adapting to Variations in Demand and Supply
Supply Chain Insights LLC Copyright © 2013, p. 36
All 3 Groups Believe That Supply Chain Agility Is Important
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For All 3 Groups, Less Than Half Think TheirSupply Chain Is Agile
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Those in Supply Chain Report a Greater Gap in Supply Chain Agility Importance vs. Performance
Supply Chain Insights LLC Copyright © 2013, p. 39
Those in Supply Chain Are Somewhat More Likelyto Report Increased Agility
Than Those in Finance
Supply Chain Insights LLC Copyright © 2013, p. 40
For All 3 Groups, the Top Techniques forImprove Agility Include Improved Demand
Forecasting and Lean Manufacturing
Supply Chain Insights LLC Copyright © 2013, p. 41
Agenda
Study Overview
Alignment
Agility
Sales and Operations Planning (S&OP)
Supply Chain Role
Finance Role
Information Technology (IT) Role
Supply Chain Insights LLC Copyright © 2013, p. 42
Those in Supply Chain Are More Likely Than Finance and IT to Report Having a S&OP Process
Supply Chain Insights LLC Copyright © 2013, p. 43
Those More Likely to Have S&OP Process:Have Supply Chain Organization or
Have Supply Chain Center of Excellence
Supply Chain Insights LLC Copyright © 2013, p. 44
Those in Supply Chain and Finance Are More Likely to Report Having
Two or More S&OP Processes
Supply Chain Insights LLC Copyright © 2013, p. 45
For Those in Supply Chain, the Most CommonS&OP Goal Is the Most Mature:
Maximize Opportunity and Mitigate Risk
Supply Chain Insights LLC Copyright © 2013, p. 46
Nearly Half of Those in Supply Chain Report That Their S&OP Process Is Effective
Supply Chain Insights LLC Copyright © 2013, p. 47
Among Supply Chain Respondents, S&OPPerformance Is Higher for Delivering Role-based
Views and Running What-if Analyses
Supply Chain Insights LLC Copyright © 2013, p. 48
For Supply Chain Respondents, the Top S&OP Challenges Are Not Having Technologies
or Executive Support
Supply Chain Insights LLC Copyright © 2013, p. 49
Supply Chain Respondents Report Wanting aHigher Frequency for S&OP Processes
Supply Chain Insights LLC Copyright © 2013, p. 50
Nearly Two in Five Supply Chain RespondentsReport That Their S&OP Plan Is Executed
Most or All of the Time
Supply Chain Insights LLC Copyright © 2013, p. 51
Collaborative Decision Making and Central View of Data Are Top Ways S&OP Technology
Supports Supply Chain Agility
Supply Chain Insights LLC Copyright © 2013, p. 52
Nearly Two in Five Report the S&OP Group HasResponsibility for S&OP Technology Budget,
Primarily Joint Responsibility
Supply Chain Insights LLC Copyright © 2013, p. 53
Agenda
Study Overview
Alignment
Agility
Sales and Operations Planning (S&OP)
Supply Chain Role
Finance Role
Information Technology (IT) Role
Supply Chain Insights LLC Copyright © 2013, p. 54
Most Supply Chain Respondents Report Having a Formal Supply Chain Organization,
but Less Than One-Third Have Chief SCO
Supply Chain Insights LLC Copyright © 2013, p. 55
Nearly Half of Supply Chain Respondents with a Supply Chain OrganizationHave Had One for Over 10 Years
Supply Chain Insights LLC Copyright © 2013, p. 56
Supply Chain Planning, Transportation and Inventory Are Top Functions Reporting Through
the Supply Chain Organization
Supply Chain Insights LLC Copyright © 2013, p. 57
Most Supply Chain Leaders Report to the CEO, COO or President
Supply Chain Insights LLC Copyright © 2013, p. 58
Demand and Supply Volatility Are Among TopSupply Chain Pain for All Three Groups
Supply Chain Insights LLC Copyright © 2013, p. 59
While Those with a S&OP Process Report More Pain About the Speed of Business,
Those Without it Report More Regulations Pain
Supply Chain Insights LLC Copyright © 2013, p. 60
Over One-Third of Those in Supply Chain ReportHaving a Supply Chain “Center of Excellence”
Supply Chain Insights LLC Copyright © 2013, p. 61
Those More Likely to Have Supply Chain Center of Excellence: Process Industry, Have Supply Chain Organization, or Have S&OP Process
Supply Chain Insights LLC Copyright © 2013, p. 62
The Most Common Definition of Supply Chain Excellence Is
“Right Product, Right Place, Right Time at Right Cost”
Supply Chain Insights LLC Copyright © 2013, p. 63
Most Important Functions of Supply Chain Center of Excellence Are Planning, Identifying
Best Practices, and Strategy
Supply Chain Insights LLC Copyright © 2013, p. 64
Top Performing Functions of Supply Chain Center of Excellence Are Planning, Goals,
Identifying Best Practices and Strategy
Supply Chain Insights LLC Copyright © 2013, p. 65
Facilitation of Horizontal Processes and Inventory Strategies Are Functions
with Low Performing Relative to Importance
Supply Chain Insights LLC Copyright © 2013, p. 66
Over Half of Those with a Supply Chain Centerof Excellence Report It Is Effective
Supply Chain Insights LLC Copyright © 2013, p. 67
Agenda
Study Overview
Alignment
Agility
Sales and Operations Planning (S&OP)
Supply Chain Role
Finance Role
Information Technology (IT) Role
Supply Chain Insights LLC Copyright © 2013, p. 68
Top Operational Finance Goal IsMaximizing Profitability
Supply Chain Insights LLC Copyright © 2013, p. 69
For Most, Operational Finance Goals AreLimited to the Company Only
Supply Chain Insights LLC Copyright © 2013, p. 70
Global Goal Setting and Regional PlanningAre Equally Common for Operational Finance
Supply Chain Insights LLC Copyright © 2013, p. 71
Half Report Company Success AtMeeting Operational Finance Goals
Supply Chain Insights LLC Copyright © 2013, p. 72
Agenda
Study Overview
Alignment
Agility
Sales and Operations Planning (S&OP)
Supply Chain Role
Finance Role
Information Technology (IT) Role
Supply Chain Insights LLC Copyright © 2013, p. 73
One-Third of Those in IT Report Having IT Members with Career Through
Line of Business Roles
Supply Chain Insights LLC Copyright © 2013, p. 74
IT Respondents Report IT Role Is Focused onKeeping IT Safe and Driving Innovation