direct materials study 2016 - summary charts
TRANSCRIPT
Supply Chain Insights LLC Copyright © 2016, p. 1
Direct Materials StudySummary Charts
February – September 2016
Supply Chain Insights LLC Copyright © 2016, p. 2
Agenda
Study Overview Direct Materials Sourcing
Direct Materials Suppliers
Technology Providers
Supply Chain Performance
Supply Chain Insights LLC Copyright © 2016, p. 3
Study Overview
Supply Chain Insights LLC Copyright © 2016, p. 4
Respondents Work Primarily in a Discrete Industry andAverage 12K Employees and $5.4B in Revenue
Supply Chain Insights LLC Copyright © 2016, p. 5
Most Common Industries Are Auto/Heavy Equipment, Industrial Manufacturing, and Medical Devices
Supply Chain Insights LLC Copyright © 2016, p. 6
Respondents Are Primarily in Executive Management or Supply Chain and Based in North America
Supply Chain Insights LLC Copyright © 2016, p. 7
Agenda
Study Overview
Direct Materials Sourcing Direct Materials Suppliers
Technology Providers
Supply Chain Performance
Supply Chain Insights LLC Copyright © 2016, p. 8
Two-Thirds of Respondents are Highly Involved in Process of Selecting and Managing Direct Materials Suppliers
Supply Chain Insights LLC Copyright © 2016, p. 9
The Most Common Spend Category for RespondentsIs Electronics
Supply Chain Insights LLC Copyright © 2016, p. 10
Three Quarters Feel Involved in Decision MakingAbout Purchasing Direct Materials
Supply Chain Insights LLC Copyright © 2016, p. 11
Having a Seat at the Table for Purchasing Direct MaterialsIs Primarily Related to One’s Department
Supply Chain Insights LLC Copyright © 2016, p. 12
Procurement, Engineering Design, and Supply Chain AreMost Involved in Direct Materials Purchasing
Supply Chain Insights LLC Copyright © 2016, p. 13
Two-Thirds Buy Direct Materials Globally
Supply Chain Insights LLC Copyright © 2016, p. 14
Companies Are Most Able to Make Decisions ThatDrive Total Landed Direct Materials Cost Reductions
Supply Chain Insights LLC Copyright © 2016, p. 15
Agenda
Study Overview
Direct Materials Sourcing
Direct Materials Suppliers Technology Providers
Supply Chain Performance
Supply Chain Insights LLC Copyright © 2016, p. 16
Innovation and Financial Viability of Direct Materials Suppliers Are the Most Important and Challenging Factors
When Assessing Suppliers
Supply Chain Insights LLC Copyright © 2016, p. 17
Companies Have Greatest Performance Gaps in Evaluating Suppliers’ Innovation, Financial Viability, and
Manufacturing Quality
Supply Chain Insights LLC Copyright © 2016, p. 18
Respondents Want to Know More About Supplier Capacity,Quality, Operations, Financials, Costs, Risk, and Customers
Supply Chain Insights LLC Copyright © 2016, p. 19
Agenda
Study Overview
Direct Materials Sourcing
Direct Materials Suppliers
Technology Providers Supply Chain Performance
Supply Chain Insights LLC Copyright © 2016, p. 20
SAP/ERP, SAP Ariba, Microsoft Office Tools, andOracle/ERP Are the Top Most Familiar Technologies
Supply Chain Insights LLC Copyright © 2016, p. 21
Microsoft Office Tools Are Most Common Technologyfor Direct Materials Sourcing / Supplier Management
Supply Chain Insights LLC Copyright © 2016, p. 22
SAP/ERP Is Most Familiar but Not Most Used
Supply Chain Insights LLC Copyright © 2016, p. 23
Microsoft Office Tools and SAP/ERP Are Most Valuable Technologies
Supply Chain Insights LLC Copyright © 2016, p. 24
SAP/ERP and Microsoft Office Tools Are Among MostFamiliar, Used, and Valuable
Supply Chain Insights LLC Copyright © 2016, p. 25
Less Than Half Consider Their Most ValuableTechnology to Be Effective
Supply Chain Insights LLC Copyright © 2016, p. 26
Most Valuable Technologies Are Consolidated,Customized, and Flexible
Supply Chain Insights LLC Copyright © 2016, p. 27
Most Valuable Technologies Have Some Weaknesses:Poor Integration, Hard to Use and Outdated, and
Limited Capabilities
Supply Chain Insights LLC Copyright © 2016, p. 28
Most Valuable Technologies Perform Highest onEvaluating Suppliers’ Price, Lead Times,
and Delivery Reliability
Supply Chain Insights LLC Copyright © 2016, p. 29
Most Valuable Technologies Are Underperforming onAbility to Evaluate Supplier Innovation, Design Quality,
Financial Viability, and Manufacturing Quality
Supply Chain Insights LLC Copyright © 2016, p. 30
Most Valuable Technologies Have Greatest Performance Gaps in Evaluating Supplier Innovation, Financial
Viability, Manufacturing Quality, and Design Quality
Supply Chain Insights LLC Copyright © 2016, p. 31
Both the Companies and the Most Valuable TechnologiesPerform Best on Evaluating Supplier Price, Delivery
Reliability, and Lead Times
Supply Chain Insights LLC Copyright © 2016, p. 32
Less Than Half Report a Return on Investment on Most Valuable Technology
Supply Chain Insights LLC Copyright © 2016, p. 33
Agenda
Study Overview
Direct Materials Sourcing
Direct Materials Suppliers
Technology Providers
Supply Chain Performance
Supply Chain Insights LLC Copyright © 2016, p. 34
Visibility Into the Extended Network of Order Managementto Customers Is Area of Greatest Opportunity
Supply Chain Insights LLC Copyright © 2016, p. 35
Largest Performance Gaps in Visibility Are the Extended Network Order Management and Suppliers
Supply Chain Insights LLC Copyright © 2016, p. 36
Most Common Areas of Respondents’ Business Pain Are Demand/Supply Volatility, Data Access/Use, Visibility,
Alignment, and Risk
Supply Chain Insights LLC Copyright © 2016, p. 37
Companies Report Performing Best on Continuous Improvement, Corporate Social Responsibility,
and Supplier Development