1977

2015

Hanjin starts

Over 97 container ships moving cargo

April2016 Files for debt restructuring

Many ships wait offshore or return to Korea

$14 billion in goods become stranded

ABERDEENGROUP

SUPPLY CHAIN VISIBILITY:KNOW SOONER, ACT NOW

Explore disruption challenges that all supply chain leaders face and learn how to respond with upstream visibility before they become crises. Source: AberdeenGroup report, November 2016

Disruption is a given and comes in many forms

The key to preventing issues from turning into crises is visibility of the upstream supply chain.

Shipment delayed /damaged / misdirected

Supplier / carrier capacitydid not meet our demand

Product quality issuesleading to recalls

Unexpected customs delays

Port congestion

Port strikes

Environmental catastrophic event

Theft / fraud / security

Percentage of Respondents n=135

The Hanjin Disruption

Aug2016

Sept2016

The Retail Squeeze

Little spent on supply chain execution

Lots of investments into PLM solutions

Better visibility can help in most disruptions

Lack of visibility serious point of weakness for supplier quality and manufacturing

0 10 20 30 40 50 60 70 80

0 5 10 15 20 25 30

27%

25%

23%

17%

13%

7%

7%

4%

Operating with very limited view of inbound supply chains

With so many disruptions and subsequent financial losses, it’s time retailers take ownership and control of their supply chains.

of best-in-class companieshave visibility

85%

58% of all other companies have visibility

Online visibility into internationalorder / supplier event status

Visibility into supplier quality andmanufacturing processes

Best in Class

73%59%

68%30%

Access to inbound supply chain data is needed for better decision making

Top shipment status capability provides enough data for recovery

Data such as product, quantity, and order information helps allocate products for customer orders or inventory for replenishment

With data and visibility Hanjin scenario less of a challenge:Best in Class

>78% access to data

Know from origin to destination

Significant competitive advantage

All Others

<50% access to data

Don’t know where inbound shipments are

Where to begin with Hanjin?

With visibility, best-in-class companies perform better

Perfect orders received from

suppliers

Perfect orders delivered

to customers

Change in average trade compliance

costs relative to declared shipment

value on imports/exports

Total landed costs per unit of import/

export handled

Best-in-Class – 97% All Others – 77%

Best-in-Class – 96% All Others – 75%

Best-in-Class – 1.4% All Others – 9.2%

Best-in-Class – .6% All Others – 6.2%

Visibility pays off in the form of on-time shipments and lower costs.

The Hanjin situation and retail squeeze on supply chain execution improvements are examples of how visibility can be the difference between an issue and a disaster.

Visibility doesn’t solve every problem, but it does enable your organization to know sooner and act now.

© 2016 Amber Road, Inc. All rights reserved.

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