Survey Results: Trends in Supply Chain Visibility

Summary Results • January 2016

Trends in Supply Chain Visibility


Program Overview

Between December 2015 and January 2016, Gatepoint Research invited select supply chain executives to participate in a survey themed Trends in Supply Chain Visibility.

Candidates were invited via email and 101 executives have participated to date.

Management levels represented are predominantly senior decision makers: 13% hold the title CxO, 37% are VPs, and 50% are Directors.

Survey participants represent firms from a wide variety of industries including general manufacturing, high tech manufacturing, retail trade, wholesale trade, telecom services, primary manufacturing, and media.

79% of responders work in Fortune 1000 companies with revenues over $1.5 billion. The balance work in large and mid-market firms whose revenues are between $250 million and $1.5 billion.

100% of responders participated voluntarily; none were engaged using telemarketing.


Observations and Conclusions

Supply chain visibility is limited. 41% of survey respondents report that their supply chain visibility extends only as far as Tier 1 relationships with contract manufacturers.

Data elements are a little easier to examine: Asked about their ability to look into data elements, respondents report good visibility into orders (80%) and inventory (78%) – but visibility falls off sharply for capacity (54%) and upside (23%).

Respondents’ ability to trail goods in-transit falls off sharply with distance: 39% have visibility between themselves and Tier 1, only 7% can see between Tiers 4 and 3.

Decisions based on old data instead of real time data: Timeliness is key to visibility data relevance, but only 14% of those surveyed have access to data in real-time.

Access doesn’t equal usage: 79% of responders’ logistics teams have access to visibility data, and 71% use it… but although 31% of Chief Supply Chain Officers have access to visibility data, only 16% use it.

Just 19% of respondents report end-to-end supply chain visibility. Not surprisingly, 54% say they are only somewhat satisfied with their current supply chain visibility.

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How far into your supply chain do you have visibility?

41% of survey respondents report that their supply chain visibility

extends only as far as Tier 1 relationships with contract manufacturers.

41%

21%

16%

23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Tier 1 (e.g., contract manufacturers) Tier 2 (e.g., assembly suppliers) Tier 3 (e.g., component suppliers) Tier 4 (e.g., raw material suppliers)

Tier 4 visibility reported mostly by general and high tech manufacturers (76% of total)



Which data elements do you have visibility into?

Asked about their ability to look into data elements, respondents report good visibility into orders (80%) and inventory (78%) – but visibility falls off sharply

for capacity (54%) and upside (23%).

80%78%

54%

23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Orders Inventory levels Capacity Upside



Do you have in-transit visibility?

If so, between which nodes of the supply chain?

Respondents’ ability to follow goods in-transit falls off sharply node-to-node: 39% have

visibility between themselves and Tier 1; only 7% can see between Tiers 4 and 3.

20%

66%

20%

12%

7%

0% 10% 20% 30% 40% 50% 60% 70%

We do not have in-transit visibility

Between Tier 1 and me

Between Tier 2 and Tier 1





How timely is your visibility data?

Timeliness is key to visibility data relevance, but only

14% of those surveyed have access to data in real-time.

14%

18%

36%

17%

7%

6%

1%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Real-time

Less than 8 hours

Less than 24 hours

Less than 72 hours

Less than one week

Less than one month

More than one month



How do you use visibility information?

Asked how visibility information is used in their business, 78% of respondents use it for supply continuity. Far less common is putting visibility information to work enabling

agile response (40%) or monitoring trading partner commitments (28%).

78%

70%

46%

40%

28%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

To ensure continuity of supply

To get early warning of supply chainproblems or disruptions

To enable agile response tounexpected changes in supply

To enable agile response tounexpected changes in demand

To monitor trading partnercompliance with commitments



Who has access to visibility data?

79% of the companies in the survey report their logistics team has access to

visibility data.

79%

60%

51%

51%

31%

14%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

The logistics team

The supply chain executive team(e.g., VP, Director, Manager)

Supply chain line personnel

Operations executives (e.g., VP, Director, Manager of Operations)

The Chief Supply Chain Officer (CSCO)

The senior executive team(e.g., CEO, CFO, etc.)



Who actually uses visibility data?

Access doesn’t equal usage: 79% of responders’ logistics teams have access to visibility data, and 71% use it… but although 31% of CSCOs have access to visibility

data, only 16% use it.

70%

55%

53%

53%

16%

6%

0% 10% 20% 30% 40% 50% 60% 70% 80%

The logistics team

Supply chain line personnel

The supply chain executive team (e.g., VP, Director, Manager)

Operations executives(e.g., VP, Director, Manager of Operations)

The Chief Supply Chain Officer (CSCO)

The senior executive team(e.g., CEO, CFO, etc.)



Does anyone in your organization have an end-to-end,

comprehensive view of supply chain visibility data?

In respondents’ firms, a comprehensive view is rare:

only 19% report end-to-end supply chain visibility.

Yes (please specify who)19%

No - visibility data is fragmented and

scattered through the organization

81%

Director of Logistics team Supply Chain Director Supply Chain executives and teamSystems/IT and Planning Warehouse personnel



How satisfied are you with your level of supply chain visibility?

Among respondents only 11% are very satisfied with their

current supply chain visibility.

11%

54%

26%

9%

0%

10%

20%

30%

40%

50%

60%

Very satisfied Somewhat satisfied Somewhat unsatisfied Very unsatisfied



Profile of Responders:

Industry Sectors

A wide range of industry sectors are represented in the survey.

61% are general and high tech manufacturing.

Mfg - General31%

Mfg - High Tech27%

Retail Trade15%

Wholesale Trade11%

Telecom Services5%

Mfg - Primary4%

Media3%

Business Services1%

Financial Services1%

Healthcare1%

Mining1%




Revenue

An impressive 79% of respondents work in Fortune 1000 companies

with over $1.5 billion in revenue.

>$1.5billion79%

$500 million - $1.5 billion16%

<$250 million5%




Job Level

All survey respondents hold executive level positions at their firms,

13% at the CxO level.

Director50%

VP37%

CxO13%


E2open is the leading provider of cloud-based, on-demand software solutions enabling

enterprises to procure, manufacture, sell, and distribute products more efficiently through

collaborative planning and execution across global trading networks. Enterprises use

E2open solutions to see and control their trading networks through real-time information,

integrated business processes, and advanced analytics.

For more information about E2open visit www.E2open.com

http://www.E2open.com

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Survey Results: Trends in Supply Chain Visibility