Presentation Transcript

1. Organizational Alignment Study:Summary ChartsMay 2013

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