Report Details: The research for this report was conducted via an online survey from January 16 – April 3, 2017. Surveys were conducted among a mix of manufacturers, retailers, and wholesalers/distributors/co-operatives (n=56). Objective: To understand the role of supply chain finance in determining supply chain strategy and gaining competitive advantage towards supply chain excellence. Highlight: Managing costs is a struggle for most companies. While 88% of companies have implemented Enterprise Resource Planning (ERP), the hard work of process evolution and maturity continues. In this report we share the current state of supply chains in managing costs, and then take a look at the processes and organizational design factors to evaluate the impact on cost management.

1. Supply Chain Finance Study
Summary Charts
January – April 2017

2. Supply Chain Insights LLC Copyright © 2016, p. 2
Agenda
 Study Overview
 Supply Chain Finance
 Supply Chain Center of Excellence
 Sales & Operations Planning
 Cost-to-Serve Analysis
 Supplier Development
 Supply Chain Organization

3. Supply Chain Insights LLC Copyright © 2016, p. 3
Study Overview

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Summary of Groups, Processes, & Programs

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Presence and Effectiveness of Groups, Processes,
and Programs

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Respondents Are Primarily Manufacturers and/or
in a Supply Chain Role

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The Most Common Industries Represented Are
Industrial Manufacturing, Chemical, and Food & Beverage

8. Supply Chain Insights LLC Copyright © 2016, p. 8
Agenda
 Study Overview
 Supply Chain Finance
 Supply Chain Center of Excellence
 Sales & Operations Planning
 Cost-to-Serve Analysis
 Supplier Development
 Supply Chain Organization

9. Supply Chain Insights LLC Copyright © 2016, p. 9
Half of Respondents Report It Is Difficult to Get Total Supply
Chain Costs for Operations

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The Finance Tactics with Greatest Opportunity Are Risk
Management, S&OP, and Cost-to-Serve

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The Finance Tactics with Greatest Opportunity Are Risk
Management, S&OP, and Cost-to-Serve

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Nearly Half Have a Supply Chain Finance Group
– for Seven Years on Average

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Most Supply Chain Finance Group Members Report to
Finance and/or Supply Chain

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Over Half Consider Their Supply Chain Finance
Group to Be Effective

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Supply Chain Finance Group Effectiveness:
Open-Ended Response

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Supply Chain Finance Group Effectiveness:
Open-Ended Response

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Reasons for No Supply Chain Finance Group

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Reasons for Wanting a Supply Chain Finance Group

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On Average, 38% of Disruptions Were Included in
Financial Reporting

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Agenda
 Study Overview
 Supply Chain Finance
 Supply Chain Center of Excellence
 Sales & Operations Planning
 Cost-to-Serve Analysis
 Supplier Development
 Supply Chain Organization

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Over One-Third Have a Supply Chain Center of Excellence
and About Half Consider It to Be Effective

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Supply Chain Design and S&OP Have Somewhat More
Influence on Supply Chain Finance Tactics Than Risk
Management or Supplier Viability

25. Supply Chain Insights LLC Copyright © 2016, p. 25
Agenda
 Study Overview
 Supply Chain Finance
 Supply Chain Center of Excellence
 Sales & Operations Planning
 Cost-to-Serve Analysis
 Supplier Development
 Supply Chain Organization

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Over Three-Quarters Have an S&OP Process; Nearly Half of
Them Consider It to Be Effective

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Most of Those with S&OP Process Report Considering
Supply Chain Costs When Making S&OP Decisions

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Agenda
 Study Overview
 Supply Chain Finance
 Supply Chain Center of Excellence
 Sales & Operations Planning
 Cost-to-Serve Analysis
 Supplier Development
 Supply Chain Organization

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About Half Have a Cost-to-Serve Program

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A/R Processing and Returns Are the Lowest Causes of Cost-
to-Serve Variability

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Agenda
 Study Overview
 Supply Chain Finance
 Supply Chain Center of Excellence
 Sales & Operations Planning
 Cost-to-Serve Analysis
 Supplier Development
 Supply Chain Organization

32. Supply Chain Insights LLC Copyright © 2016, p. 32
Two in Five Have a Supplier Development Program

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Purchase Order Terms and Inventory Policies
Are the Procurement Policies Most Influenced
by Supply Chain Finance

34. Supply Chain Insights LLC Copyright © 2016, p. 34
Agenda
 Study Overview
 Supply Chain Finance
 Supply Chain Center of Excellence
 Sales & Operations Planning
 Cost-to-Serve Analysis
 Supplier Development
 Supply Chain Organization

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Most Consider Their Supply Chains to Be Traditional with
Room for Improvement

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On Average, Seven Functions Report into the Supply Chain
Organization

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Most Report Having an ERP System, but Two in Five of Them
Do Not Know How Many They Have