Inventory Optimization 2015 Preliminary Summary Charts

Supply Chain Insights LLC Copyright © 2015, p. 1

Inventory Optimization Study

Preliminary Summary ChartsFebruary – May, 2015


Agenda

Study Overview

Inventory Optimization Software

Inventory Management

Team Alignment and Business Pain


Study Overview


Most Respondents Are Manufacturers and Most Work in a Process Industry


The Most Common Industries Are CPG, Food & Beverageand Chemical


Company Revenue Is $6B on Average


Most Respondents Work in a Supply Chain Role, Work at aDirector/Manager Level, and Are Based in US & Canada


Agenda

Study Overview





Inventory Optimization Provider Categorization


Nearly Half Have Advanced Softwarefor Most Important; SAP Is Most Common Provider


SAP Is Most Common Provider Overall andfor Advanced Software


Nearly Half Are Satisfied with TheirMost Important Inventory Software


Sample Responses for Why Satisfied with Inventory Optimization Software


Sample Responses for Why NOT Satisfied withInventory Optimization Software


Nearly Two-Fifths Have Achieved ROI and Over One-Quarter Can Match “Top-Down” and “Bottom-Up”


Most Common Way for Those with Advanced Softwareto Improve Inventory Is Inventory Optimization Software


For Those with Advanced Software, Supply Chain GroupIs Most Likely Sponsor and to Have within KPIs


For Those with Advanced Software, Supply Chain GroupIs Most Likely to Have it within KPIs


Agenda

Study Overview





Half Consider Company to Be Effective atMaking Inventory Decisions


Sample Responses for Why Effective at Making Inventory Decisions


Sample Responses for Why NOT Effective atMaking Inventory Decisions


Nearly Half Reduced Inventory in 2014;Primary Reason Is Greater Attention to Detail on

Inventory Performance


Cycle Counting Is Most Common Way to ControlInventory Accuracy


Important Inventory Goals Needing Attention:S&OP Maturity, Leadership Understanding, and

Adherence to Inventory Targets


Maturity of S&OP Is Most Important Inventory Goal, but Not Performing Well


Maturity of S&OP Is Most Important Inventory Goal, but Not Performing Well


Chief SC Officers and Functional VPs Understand InventoryStrategies Notably Better Than Do P&L Owners


Agenda

Study Overview





Sales & Marketing Alignment Is Most Important andTop Performing


Greatest Gaps in Alignment:Operations & IT, Sales & Operations,

and Manufacturing & Procurement


Increasing Business Pain Expected for Speed of Business,Risk, Talent, Value Networks, Globalization, and Innovation


Consistently High Pain Reported for Demand/SupplyVolatility and Cross-Functional Alignment


Overall Increases in Business Pain Expected Mostly forIncreasing Speed of Business, Risk Management, and Talent


Since Five Years Ago, Decreases in Business Pain Reportedfor Clarity of Business Strategy and Software Usability


Increases in Business Pain Expected Mostly for Risk Management, Innovation, and Increasing Speed of Business