Transportation Summary Charts Aug-Oct 2012

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Summary Charts for report:

Transportation
Study
Summary Charts
August – October 2012

Supply
Chain
Insights

Agenda

Supply Chain Insights LLC Copyright © 2012, p. 2

Study Overview

Supply Chain Insights LLC Copyright © 2012, p. 3

Company Type

Supply Chain Insights LLC Copyright © 2012, p. 4

Company Size & Industry

Supply Chain Insights LLC Copyright © 2012, p. 5

Involvement in Transportation
Management

Supply Chain Insights LLC Copyright © 2012, p. 6

Respondent Roles

Supply Chain Insights LLC Copyright © 2012, p. 7

Agenda

Supply Chain Insights LLC Copyright © 2012, p. 8

Top 3 Elements of Business Pain:
Users

Supply Chain Insights LLC Copyright © 2012, p. 9

Top 3 Concerns:
Domestic Freight

Supply Chain Insights LLC Copyright © 2012, p. 10

Top 3 Concerns:
Domestic Freight: Users

Supply Chain Insights LLC Copyright © 2012, p. 11

Top 3 Concerns:
International Freight

Supply Chain Insights LLC Copyright © 2012, p. 12

Supply Chain Visibility

Supply Chain Insights LLC Copyright © 2012, p. 13

Company Maturity:
Users

Supply Chain Insights LLC Copyright © 2012, p. 14

Company Maturity:
Users

Supply Chain Insights LLC Copyright © 2012, p. 15

Company Maturity:
Providers’ Clients

Supply Chain Insights LLC Copyright © 2012, p. 16

Company Maturity:
Users vs. Providers’ Clients

Supply Chain Insights LLC Copyright © 2012, p. 17

Importance to Supply Chain Strategy:
Users vs. Providers’ Clients

Supply Chain Insights LLC Copyright © 2012, p. 18

Importance to Supply Chain Strategy:
Users

Supply Chain Insights LLC Copyright © 2012, p. 19

Importance to Supply Chain Strategy:
Providers’ Clients

Supply Chain Insights LLC Copyright © 2012, p. 20

Performance of Supply Chain Strategy:
Users vs. Providers’ Clients

Supply Chain Insights LLC Copyright © 2012, p. 21

Performance of Supply Chain Strategy:
Users

Supply Chain Insights LLC Copyright © 2012, p. 22

Performance of Supply Chain Strategy:
Providers’ Clients

Supply Chain Insights LLC Copyright © 2012, p. 23

Importance vs. Performance:
Users

Supply Chain Insights LLC Copyright © 2012, p. 24

Importance vs. Performance:
Users

Supply Chain Insights LLC Copyright © 2012, p. 25

Importance vs. Performance:
Providers’ Clients

Supply Chain Insights LLC Copyright © 2012, p. 26

Importance vs. Performance:
Providers’ Clients

Supply Chain Insights LLC Copyright © 2012, p. 27

Ease of Getting Total Supply Chain Costs:
Users

Supply Chain Insights LLC Copyright © 2012, p. 28

Cost of Goods Sold from
Transportation Costs: Users

Supply Chain Insights LLC Copyright © 2012, p. 29

Agenda

Supply Chain Insights LLC Copyright © 2012, p. 30

Transportation Network Design
Frequency

Supply Chain Insights LLC Copyright © 2012, p. 31

Transportation Management System

Supply Chain Insights LLC Copyright © 2012, p. 32

Role Regarding Transportation
Management System: Users

Supply Chain Insights LLC Copyright © 2012, p. 33

Top 3 Criteria for Selecting Transportation
Management System: Users

Supply Chain Insights LLC Copyright © 2012, p. 34

Percent of Domestic Inbound Freight
Planned by Company

Supply Chain Insights LLC Copyright © 2012, p. 35

Percent of International Inbound
Freight Planned by Company

Supply Chain Insights LLC Copyright © 2012, p. 36

Percent of Distribution and
Manufacturing Outsourced to 3PL

Supply Chain Insights LLC Copyright © 2012, p. 37

Satisfaction with Current 3PL
Services: Users

Supply Chain Insights LLC Copyright © 2012, p. 38

Agenda

Supply Chain Insights LLC Copyright © 2012, p. 39

Corporate Social Responsibility
Policy

Supply Chain Insights LLC Copyright © 2012, p. 40

Clarity of Connection Between CSR
and Transportation Planning

Supply Chain Insights LLC Copyright © 2012, p. 41

Top 3 Ways Company Ties Social
Responsibility to Transportation Planning

Supply Chain Insights LLC Copyright © 2012, p. 42

Agenda

Supply Chain Insights LLC Copyright © 2012, p. 43

Supply Chain Organization

Supply Chain Insights LLC Copyright © 2012, p. 44

Functions Reporting Through
Supply Chain

Supply Chain Insights LLC Copyright © 2012, p. 45

Supply Chain Organization Leader

Supply Chain Insights LLC Copyright © 2012, p. 46

How Characterize Company’s
Supply Chain

Supply Chain Insights LLC Copyright © 2012, p. 47

Supply Chain Center of Excellence

Supply Chain Insights LLC Copyright © 2012, p. 48

Functions of Center of Excellence

Supply Chain Insights LLC Copyright © 2012, p. 49

Supply Chain Excellence Definition

Supply Chain Insights LLC Copyright © 2012, p. 50

Top 3 Supply Chain Pain Points

Supply Chain Insights LLC Copyright © 2012, p. 51

Other Transportation Management
Issues: Users

Supply Chain Insights LLC Copyright © 2012, p. 52

Other Transportation Management
Issues: Providers

Supply Chain Insights LLC Copyright © 2012, p. 53

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For the purpose of this report, transportation management is defined as technologies that automate and improve decision making in domestic and international logistics. This report is based on a quantitative study conducted between August 16th, 2012 and October 9th, 2012. The summary reflects responses from 75 respondents from 55 companies active in transportation freight decisions. The goal of the study was to understand how business complexity and maturity have affected the deployment and development of supply chain technologies to improve transportation management. The study contrasts the views of line-of-business transportation solution users and providers of the technologies. The quantitative study results are enriched with insights from Supply Chain Insights’ work on supply chain ratios and interviews with business leaders to validate and clarify the results.

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Get ready for 2014 planning by benchmarking the financial performance of your supply chain. Using a database of over 50 metrics with 20 years of data, the Supply Chain Insights team can help you better understand your supply chain potential. This analysis enables visualization of company performance on managing the trade-offs of growth, profitability, inventory/cash cycles and complexity. We find that each company has a unique pattern in how they managed trade-offs. The analysis helps you benchmark against your peer group and make a conscious choice. Through a deeper understanding of industry averages and outliers, this type of study helps you to better understand your supply chain potential. While many companies have used this service to understand public performance, many leaders have taken it one step further to benchmark divisions or product groups within their companies.

Supply Chain Insights' Financial Benchmarking Examples - 27 AUG 2013

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How Do We Heal the Healthcare Value Chain? Over the last decade, as shown in figure 1, the hospital supply chain has been one of the few that has improved operating margin, reduced inventory and improved revenue/employee. In contrast, the manufacturing suppliers to the hospital organization have grown inventories and struggled to preserve margins. Across the value chain from the patient to the raw material suppliers, total inventories have grown and costs have escalated. With pending regulations, hospitals are being forced to rethink processes, redefine value and work more holistically to improve sourcing practices. The suppliers to the hospital systems are having to rethink their systems to rethink the customer (from selling to the physician to selling to a more formal buying organization based on patient outcomes) and adapt to the new processes within the hospital for value analysis. Supply chain processes within the hospitals have matured. Hospitals have made more progress on improving cash-to-cash cycles than their upstream manufacturing trading partners. They have reduced inventories and attempted to work with suppliers. As shown in figure 2, it is notable to see that this industry is one of the few where downstream trading partners have actually improved payable terms for their suppliers. The future lies before the healthcare provider. As the provider of patient care, they have the greatest potential to lead in the healthcare value chain’s redesign to improve value. They have come a long way, but the changes have been incremental. They have focused primarily on traditional sourcing techniques; not a redesign of the healthcare value chain from the outside in, and the redefinition of complex and antiquated processes.

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Executive Summary Today, the performance of an organization hinges more than ever on the effectiveness of flows between, and amongst, trading partners. It is not easy. The supply chain is not linear, and the relationships extend across geographic borders and industry sectors. Outsourcing relationships have grown in the last decade; however, the automation of these networks has not kept pace. In the words of one respondent interviewed for this report in a facilitated workshop to review the data, “Today, we connect trading partners through spreadsheets, email, phone and fax. It is antiquated. I liken it to baling wire, chewing gum and duct tape. I need solutions that can synchronize and harmonize data across trading partners in real-time. My operating committee does not think that it is sexy to invest in B2B solutions, but it is needed. Today, it is almost impossible for us to understand the manufacturing status of purchase orders, and have accurate information readily on supply chain visibility of in-transit shipments. As a result, we make the wrong decisions, and have unnecessary wait times to get information.” These comments echo the findings in this study. Respondents operate value networks, but they struggle to get to the data they need. The outsourcing of logistics is greater than manufacturing. Eighty-one percent of companies outsource logistics. The volume of outsourced logistics is 48% on average. In contrast, 66% of companies outsource manufacturing. The outsourced volume manufacturing volume varies, but averages 15%. While the networks are complex, and the goals are many, progress is hard to track. This leads many supply chain leaders to ask, “What is the current state? What is the opportunity?” Answering these questions is the goal of this report. Let’s start with the current state. As seen in Figure 2, the average respondent in this report believes that the supply chain today is more controlled and global than compared to two years ago. While they have made improvements in agility and proactivity, there is much more left to do. The largest challenges are in the use of outside-in data to improve channel sensing and reduce risk. While the supply chain today has made progress in transactional efficiency, companies are less competent at sensing opportunities and mitigating risks.

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Sales and Operations Planning processes are now in their fourth decade of maturity. The processes are growing more complex. Progress is slow. The infographic below shows the current state of the union of sales and operations into S&OP processes. In this world of uncertainty, good planning matters. Complexity and volatility are escalating. Improving S&OP in a systematic approach, focused on goal evolution and systemic process governance, makes a difference; but, it requires education. A barrier to improvement is the executive team not understanding the supply chain as a complex system. It is the goal of this report to help alleviate this problem.

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25 July 2018 Report Details: The research for this report was conducted via an online survey from March 12 - May 11, 2018. Surveys were conducted among 93 respondents -- a mix of business users (manufacturers, wholesalers/distributors/co-operatives, and third-party logistics providers, n=34), vendors (software providers and consultants, n=39), and others (academics, analysts, unemployed, and others, n=20). Objective: To understand the current and expected future state of supply chain risk management, the biggest drivers of risk, and the impact on supply chain disruptions. NOTE: supply chain risk management is defined as the proactive identification and assessment of potential risks to the supply chain, as well as the development of strategies to avoid these risks. Highlight: Nearly two-thirds of respondents believe that their company performs better today on risk management practices than five years ago yet they had 3.5 disruptions last year on average. Managing risk requires a network approach. Today’s investments in end-to-end supply chain are by and large not effective in risk mitigation. Only 37% have visibility of extended-tier suppliers and most lack the solutions to manage global complexity.

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Executive Summary Teams claim that they are building end-to-end supply chain processes; but we do not find that this is true. Despite the growing need to automate the extended supply chain, the focus of most companies is on enterprise automation. The process flows of the extended supply chain are dependent on spreadsheets and Electronic Data Interchange (EDI). It is not sufficient. Companies want better supply chain visibility. The gaps in current supply chain capabilities are large. While EDI is effective in moving transactional data, it is point to point lacking community interaction. Companies are seeking new and deeper forms of supply chain visibility through business networks. It takes many forms. It is foundational to deliver on the promise of agility. They want to be more agile and the current IT architectures are not meeting this need. High level survey findings are: • Outsourcing is a Reality. It is here to Stay. For the average company, outsourcing of manufacturing and transportation is a reality. In the study, approximately ninety percent of respondents report having some level of outsourcing. Thirty percent outsource forty percent or more of their manufacturing and fifty-five percent outsource at least forty percent of their logistics on a volume basis. • Supply Chain Visibility has Many Forms. Few are Being Delivered Well. The term supply chain visibility is a nebulous term with many meanings. There is no standard definition. In this report, we share insights on the forms of visibility and the issues with each. Visibility within the company is being addressed by current IT architectures; but B2B architectures to support emerging supply chain visibility requirements are evolving. • The Gaps in Supply Chain Visibility are Large. The Satisfaction with EDI is high. The Confidence in ERP to Close the Gap is Low. The average company with ERP has seven different ERP instances and forty-nine percent of respondents report ERP spending plays a major role in their IT budget. However, as shown in this report, the gaps for supply chain visibility are high and the confidence that ERP implementations can close the gaps is low. As a result, the extended supply chain runs on EDI and spreadsheets. In the words of one supply chain leader that we interviewed, “Today, it is much like chewing gum, bailing wire and a shoestring.” In this report, we give an overview of the current state of supply chain visibility--the different forms and the state of each-- and share insights on current levels of importance and performance. We then look critically at current efforts of IT investment/focus and give recommendations on how business users can work with IT teams to close these gaps.

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Transportation Summary Charts Aug-Oct 2012

1. Transportation Study Summary Charts August – October 2012 Supply Chain Insights

2. Agenda Supply Chain Insights LLC Copyright © 2012, p. 2

3. Study Overview Supply Chain Insights LLC Copyright © 2012, p. 3

4. Company Type Supply Chain Insights LLC Copyright © 2012, p. 4

5. Company Size & Industry Supply Chain Insights LLC Copyright © 2012, p. 5

6. Involvement in Transportation Management Supply Chain Insights LLC Copyright © 2012, p. 6

7. Respondent Roles Supply Chain Insights LLC Copyright © 2012, p. 7

8. Agenda Supply Chain Insights LLC Copyright © 2012, p. 8

9. Top 3 Elements of Business Pain: Users Supply Chain Insights LLC Copyright © 2012, p. 9

10. Top 3 Concerns: Domestic Freight Supply Chain Insights LLC Copyright © 2012, p. 10

11. Top 3 Concerns: Domestic Freight: Users Supply Chain Insights LLC Copyright © 2012, p. 11

12. Top 3 Concerns: International Freight Supply Chain Insights LLC Copyright © 2012, p. 12

13. Supply Chain Visibility Supply Chain Insights LLC Copyright © 2012, p. 13

14. Company Maturity: Users Supply Chain Insights LLC Copyright © 2012, p. 14

15. Company Maturity: Users Supply Chain Insights LLC Copyright © 2012, p. 15

16. Company Maturity: Providers’ Clients Supply Chain Insights LLC Copyright © 2012, p. 16

17. Company Maturity: Users vs. Providers’ Clients Supply Chain Insights LLC Copyright © 2012, p. 17

18. Importance to Supply Chain Strategy: Users vs. Providers’ Clients Supply Chain Insights LLC Copyright © 2012, p. 18

19. Importance to Supply Chain Strategy: Users Supply Chain Insights LLC Copyright © 2012, p. 19

20. Importance to Supply Chain Strategy: Providers’ Clients Supply Chain Insights LLC Copyright © 2012, p. 20

21. Performance of Supply Chain Strategy: Users vs. Providers’ Clients Supply Chain Insights LLC Copyright © 2012, p. 21

22. Performance of Supply Chain Strategy: Users Supply Chain Insights LLC Copyright © 2012, p. 22

23. Performance of Supply Chain Strategy: Providers’ Clients Supply Chain Insights LLC Copyright © 2012, p. 23

24. Importance vs. Performance: Users Supply Chain Insights LLC Copyright © 2012, p. 24

25. Importance vs. Performance: Users Supply Chain Insights LLC Copyright © 2012, p. 25

26. Importance vs. Performance: Providers’ Clients Supply Chain Insights LLC Copyright © 2012, p. 26

27. Importance vs. Performance: Providers’ Clients Supply Chain Insights LLC Copyright © 2012, p. 27

28. Ease of Getting Total Supply Chain Costs: Users Supply Chain Insights LLC Copyright © 2012, p. 28

29. Cost of Goods Sold from Transportation Costs: Users Supply Chain Insights LLC Copyright © 2012, p. 29

30. Agenda Supply Chain Insights LLC Copyright © 2012, p. 30

31. Transportation Network Design Frequency Supply Chain Insights LLC Copyright © 2012, p. 31

32. Transportation Management System Supply Chain Insights LLC Copyright © 2012, p. 32

33. Role Regarding Transportation Management System: Users Supply Chain Insights LLC Copyright © 2012, p. 33

34. Top 3 Criteria for Selecting Transportation Management System: Users Supply Chain Insights LLC Copyright © 2012, p. 34

35. Percent of Domestic Inbound Freight Planned by Company Supply Chain Insights LLC Copyright © 2012, p. 35

36. Percent of International Inbound Freight Planned by Company Supply Chain Insights LLC Copyright © 2012, p. 36

37. Percent of Distribution and Manufacturing Outsourced to 3PL Supply Chain Insights LLC Copyright © 2012, p. 37

38. Satisfaction with Current 3PL Services: Users Supply Chain Insights LLC Copyright © 2012, p. 38

39. Agenda Supply Chain Insights LLC Copyright © 2012, p. 39

40. Corporate Social Responsibility Policy Supply Chain Insights LLC Copyright © 2012, p. 40

41. Clarity of Connection Between CSR and Transportation Planning Supply Chain Insights LLC Copyright © 2012, p. 41

42. Top 3 Ways Company Ties Social Responsibility to Transportation Planning Supply Chain Insights LLC Copyright © 2012, p. 42

43. Agenda Supply Chain Insights LLC Copyright © 2012, p. 43

44. Supply Chain Organization Supply Chain Insights LLC Copyright © 2012, p. 44

45. Functions Reporting Through Supply Chain Supply Chain Insights LLC Copyright © 2012, p. 45

46. Supply Chain Organization Leader Supply Chain Insights LLC Copyright © 2012, p. 46

47. How Characterize Company’s Supply Chain Supply Chain Insights LLC Copyright © 2012, p. 47

48. Supply Chain Center of Excellence Supply Chain Insights LLC Copyright © 2012, p. 48

49. Functions of Center of Excellence Supply Chain Insights LLC Copyright © 2012, p. 49

50. Supply Chain Excellence Definition Supply Chain Insights LLC Copyright © 2012, p. 50

51. Top 3 Supply Chain Pain Points Supply Chain Insights LLC Copyright © 2012, p. 51

52. Other Transportation Management Issues: Users Supply Chain Insights LLC Copyright © 2012, p. 52

53. Other Transportation Management Issues: Providers Supply Chain Insights LLC Copyright © 2012, p. 53