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1. Supply Chain Survey Report
March 2010

2. Ultra Logistics Supply Chain Survey
March 2010
Contents
Executive Summary....................................................................................................................................... 3
Method ......................................................................................................................................................... 3
Profile of our respondents ............................................................................................................................ 4
Industries .................................................................................................................................................. 4
Annual Revenue ........................................................................................................................................ 4
Production Facilities.................................................................................................................................. 5
Distribution Facilities ................................................................................................................................ 5
Supply Chain Employees ........................................................................................................................... 6
Domestics versus International ................................................................................................................ 6
Transportation Modes .............................................................................................................................. 7
Most Significant Goal .................................................................................................................................... 7
Detailed Questions Summary ....................................................................................................................... 8
Detailed Questions Cross References ........................................................................................................... 9
Responses by Industry .............................................................................................................................. 9
Responses by Revenue.............................................................................................................................. 9
Responses by Production Facilities ........................................................................................................... 9
Responses by Distribution Facilities........................................................................................................ 10
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3. Ultra Logistics Supply Chain Survey
March 2010
Executive Summary
Due to the extraordinary economic climate of the past few years, it is our belief that supply
chain priorities have shifted in response. By directly surveying supply chain managers and
executives at companies across numerous industries, our goal is to provide an analysis of
these shifts in management behavior.
As such, the Supply Chain Survey was commissioned by Ultra Logistics in early 2010 to
gauge the supply chain priorities of US companies. While we strive to maintain the highest
level of accuracy and objectivity from the data gathered and analyzed, this report should be
considered general guidance rather than a definitive interpretation of current market
conditions.
As the US economy recovers from the worst recession in decades, we have found that
companies have generally opted to maintain focus on increasing operational efficiency.
Our analysis indicates that 44% of companies surveyed view improving Supply Chain
management as their number one priority. A further 39% of our respondents view cost
cutting as the most important goal for 2010.
Exploring these goals further, our data indicates that improving flexibility, improving
inventory management and optimizing shipping and routes are the three most critical
areas of focus for many of the respondents.
It is important to note that while much of the attention is paid towards tactical
improvements, mid to longer term activities such as strategic sourcing, network
restructuring and strategic balancing of in-source vs out-sourcing are also on many Supply
Chain managers’ minds today.
Through this report, we will show what supply chain managers have identified as prioritized
objectives as well as provide insight on opportunities in our time ahead.
Method
This survey was distributed to over 3,000 select supply chain managers and executives
across industries ranging from the service sector to heavy manufacturing. The survey was
conducted entirely online between January 5- 26, 2010.
All responses were kept anonymous and confidential. The survey consisted of 22 optional
questions with 9 questions relating to the general characteristics of the respondent’s
organization. For the remaining 13 questions we asked our participants to rate on a scale of
1 to 5 the importance of each stated supply chain related objectives.
The results were thoroughly analyzed for error and duplication. If a respondent did not
provide an answer for a particular question, the results are identified as a “no-response”.
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4. Ultra Logistics Supply Chain Survey
March 2010
Profile of our respondents
Industries
Of the companies that responded, Consumer Goods Manufacturers represent 42% of the
total. Other industries represented are Food and Beverage, Home Furnishings, Service,
Consumer Packaging, Retail, Sporting Goods and Construction Material.
Annual Revenue
Ultra Logistics wanted to target a wide range of supply chain needs with an emphasis in
high volume shippers for this survey. Up to 40% of the companies we surveyed reported
annual revenue of over one billion dollars. The other heavy concentration of respondents
(34%) is between $11M-$100M in annual revenue.
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5. Ultra Logistics Supply Chain Survey
March 2010
Production Facilities
The vast majority of our respondents have fewer than 50 production facilities. We made no
distinction between domestically or internationally located facilities.
Distribution Facilities
Over 50% of our respondents reported 5 or fewer distribution facilities. We made no
distinction between domestically or internationally located facilities.
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6. Ultra Logistics Supply Chain Survey
March 2010
Supply Chain Employees
Roughly two-thirds of the companies surveyed have fewer than 100 total supply chain
employees. This result was somewhat surprising considering the distribution of responses
by revenue. It indicates through the use of technologies such as TMS, WMS, Labor
Management, etc. and general process improvements, companies are finding ever more
creative ways to do more with less.
Domestics versus International
Based on the responses received, we observed an imbalance in the percentage of domestic
versus international moves between inbound and outbound transportation. According to our
analysis, 64% of our respondents ship up to 100% of their outbound volume domestically.
In contrast, 44% of our respondents receive up to 100% of their inbound volume
domestically.
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7. Ultra Logistics Supply Chain Survey
March 2010
Transportation Modes
LTL shipments are by far the most common shipment method utilized by our survey
respondents at 94%. Truckload and ocean shipments are also very common among the
survey takers. Please note the survey only allowed for yes/no answers, therefore the
analysis does not reflect shipment volumes.
Most Significant Goal
When we asked our survey participants what their most significant goal is, the responses
clearly gravitated towards two categories: Supply Chain Cost Cutting (39%) and Improved
Management of your Supply Chain (44%). The remaining two categories “Supply Chain
Risk Planning” and “Better Alignment of your Strategic Goals” combined accounted for 17%
of total responses.
This is an indication that companies are currently more focused on short to medium term
operational/financial control rather than longer term strategic planning. It is our thought
that this notion is also supported in the Detailed Questions section below.
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8. Ultra Logistics Supply Chain Survey
March 2010
Detailed Questions Summary
We asked our survey participants to rate the following categories according to the
importance of each statement:
Category Description
Speed Speed of adaptability and flexibility of your current supply chain in the event of a necessary
increase or decrease in volume
Shipping Optimal setup of shipping and routes to respond to today's volatile market conditions
Inventory Actively managing inventory at different points of your supply chain based on timing and
product flow characteristics
Fuel Flux Managing your transportation resources adequately to manage fluctuations in fuel prices
Sourcing Optimize sourcing strategy to provide the lowest cost solution while minimizing time delivery
risks
Restructuring Restructure your network based on changing cost and service requirements
Outsource Right balance of in-source and/or outsource operations, allowing you to focus on your core
strategies
Allocating Accurately allocating supply chain costs at a SKU level
Distribution Optimizing number, size, and location of distribution facilities
Simulate Ability to simulate changes in network setup via software to gauge the effects
Benchmarking Benchmarking current network against industry norms
Manufacturing Optimizing number, size, and location of manufacturing facilities
Not Somewhat Very Extremely Weighted
Category Rank No Response Important Important Important Important Important Score
Speed 1 0% 3% 3% 11% 33% 50% 4.25
Shipping 2 0% 0% 11% 8% 28% 53% 4.22
Inventory 3 6% 6% 6% 6% 29% 53% 4.18
FuelFlux 4 0% 3% 14% 25% 17% 42% 3.81
Sourcing 5 9% 0% 3% 18% 42% 36% 4.12
Restructuring 5 6% 0% 6% 15% 53% 26% 4.00
Outsource 7 0% 8% 3% 44% 25% 19% 3.44
Allocating 8 6% 6% 15% 12% 50% 18% 3.59
Distribution 9 3% 17% 14% 14% 23% 31% 3.37
Simulate 10 6% 6% 24% 26% 21% 24% 3.32
Benchmarking 11 3% 9% 17% 29% 37% 9% 3.20
Manufacturing 12 6% 29% 15% 15% 18% 24% 2.91
Based on our survey results, Speed of Adaptability and Flexibility is the most important
factor in our respondents’ supply chain with 50% rating this category extremely important.
This is unsurprising given the current economic climate and associated volume changes
experience in many industries.
Along with Flexibility and Adaptability, our survey participants also indicated to us that
inventory management and optimal routing play a big factor in where they are currently
focusing their efforts.
We believe the trend in supply chain management in 2010 falls heavily towards tactical
objectives such as improving execution, reducing operating costs, improving working capital
efficiency and better managing short term risks.
Long term goals are not ignored however as companies that operate in less volatile markets
maintain strong interest in categories such as Strategic Sourcing, Network Planning, and
Benchmarking, etc.
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9. Ultra Logistics Supply Chain Survey
March 2010
Detailed Questions Cross References
The following section illustrates importance broken down by Industry, Revenue and Number
of Facilities. Importance in categories are indicated a scale of 1 to 5 with 5 being the most
importance. Each metric is derived by averaging the set of numbers matching both the
category and the noted variables.
Responses by Industry
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Construction Material 5.0 5.0 5.0 3.0 4.0 0.0 3.0 4.0 4.0 4.0 4.0 4.0
Consumer Goods 4.1 4.1 3.3 3.6 3.4 4.0 3.5 2.8 3.9 2.9 3.2 3.7
Consumer Packaging 4.7 4.7 3.3 3.7 3.3 3.5 4.5 4.0 4.0 3.7 3.0 4.7
Food/Bev 4.4 4.4 3.6 4.8 4.4 4.6 4.4 4.2 5.0 4.0 4.6 4.6
Home Furnishings 4.3 3.8 3.0 3.3 2.3 4.0 2.3 2.0 4.0 2.5 4.7 4.0
Retail 4.3 4.0 2.7 3.3 1.7 4.7 2.0 1.0 3.7 2.7 2.7 3.3
Sporting Goods 3.5 4.5 4.5 5.0 4.0 3.5 5.0 4.5 4.5 3.5 4.5 5.0
Service 4.7 4.3 4.0 4.0 3.3 4.3 2.3 2.3 4.7 3.7 3.3 3.7
Total 4.3 4.2 3.4 3.8 3.3 4.1 3.4 2.9 4.2 3.2 3.6 4.0
Responses by Revenue ring
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Revenue
$1.1M-$10M 4.3 5.0 4.3 4.7 3.7 4.7 4.0 3.3 5.0 3.7 3.3 3.7
$11M-$100M 3.9 3.6 2.7 3.3 2.8 3.9 2.3 2.1 3.8 2.3 3.3 3.7
$101M-$1B 4.5 4.5 3.8 3.7 3.5 3.5 4.2 4.0 3.8 3.7 3.8 4.3
$1B+ 4.4 4.4 3.6 4.1 3.5 4.3 3.7 2.9 4.4 3.7 3.8 4.1
Responses by Production Facilities
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0 4.3 4.0 2.7 3.7 1.7 4.7 2.0 1.0 4.0 3.0 3.7 3.3
1-50 4.2 4.2 3.4 3.7 3.4 3.9 3.4 2.9 4.1 3.1 3.5 4.0
51-100 4.0 5.0 3.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
101-200 4.0 4.0 4.0 4.0 3.0 5.0 5.0 5.0 5.0 3.0 4.0 4.0
201-500 5.0 4.0 4.5 5.0 3.5 5.0 3.5 3.5 4.5 4.5 3.5 4.0
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10. Ultra Logistics Supply Chain Survey
March 2010
Responses by Distribution Facilities
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1-5 4.2 4.0 3.2 3.5 2.8 4.2 2.8 2.6 3.9 2.8 3.2 3.7
6-10 3.5 4.5 3.5 4.3 3.8 3.5 4.3 3.5 4.0 3.3 4.0 4.5
11-20 4.4 4.6 3.4 3.9 3.6 4.3 3.9 2.6 4.4 4.1 4.3 4.3
21-50 4.5 4.0 4.0 5.0 4.5 3.5 4.5 3.5 5.0 3.0 3.0 4.5
51+ 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
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