Organizational Alignment Study-Summary Charts-May 2013

TM
Organizational Alignment
Study:
Summary Charts
May 2013

Supply Chain Insights LLC Copyright © 2013, p. 2
Agenda

Study Overview

Results from 3 Functional Roles:
Supply Chain, Finance and IT

Respondents from a Mix of Discrete and Process
Manufacturing Companies

Top Industries Represented Include Consumer
Packaged Goods, Food & Beverage
and High Tech & Electronics

Respondents in Supply Chain Roles Come from
Companies with Higher Revenue,
$4.4B on Average

Those in Supply Chain Are Mostly Directors+;
Those in Finance and IT Tend
to Come from Lower Roles

Those in Supply Chain Role Are More Likely
Than Finance or IT to Have
Open Design Network with Suppliers

Those in Supply Chain or IT Roles Are More Likely
to Report Having Either a Supply Chain or
Business Intelligence Center of Excellence

Those in Supply Chain or IT Are More Likely to
Have Corporate Social Responsibility Goals

Agenda

Alignment between Manufacturing &
Procurement Is Seen as Among the
Most Important for All Three Roles

Alignment Is Most Apparent between
Manufacturing & Procurement
and Sales & Marketing

Gaps in Alignment Are Among the Highest
for Sales & Operations and Sales & Marketing

For Supply Chain, the Largest Gap in
Alignment Importance vs. Performance
Is for Sales & Operations

For Finance, the Most Important Areas for
Alignment Are Among the Least Aligned

For IT, Two of the Largest Gaps in Alignment Importance
vs. Performance Are for Sales & Marketing
and Manufacturing & Procurement

For Those in Supply Chain, Having a Center
of Excellence Means Greater Alignment for
Marketing & Finance and CSR & Operations

For Those in Supply Chain, Having a Mature Agility
Definition Means Greater Alignment
between Marketing & Finance

For Those in Supply Chain, Having Higher Agility
Means Greater Alignment between Manufacturing
& Procurement, Sales & Operations and Operations & IT

For Those in Supply Chain, Having a More Mature
S&OP Goal Means Greater Alignment between
Sales & Finance and Sales & Operations

For All 3 Groups, the Most Common Metrics Include
Operating Margin, Cost of Goods Sold & Shipments

For All 3 Groups, 3 of the Top 5 Metrics Include
Operating Margin, Shipments & Cost of Goods Sold

Those with a Supply Chain Center of Excellence
Are Somewhat More Likely to Track Cost to Serve

Those with a Supply Chain Organization Are More
Likely to Track Days of Inventory and Cost to Serve

Those with a S&OP Process Are More Likely
to Track Operating Margin, Days of Inventory
and Volume Sold

Supply Chain Respondents Report 5 Most Important
Metrics Are Operating Margin, Shipments,
Cost of Goods Sold, Days of Inventory & Volume Sold

For Supply Chain Respondents, the 5 Most Important
Metrics Are Operating Margin, Shipments,
Cost of Goods Sold, Days of Inventory & Volume Sold

Finance Respondents Report 5 Most Important Metrics Are
Operating Margin, Cost of Goods Sold, Shipments, Return
on Assets, Cash-to-Cash Cycle & Forecast Accuracy

Finance Respondents Report 5 Most Important
Metrics Are Operating Margin, Cost of Goods Sold,
Shipments, Return on Assets & Cash-to-Cash Cycle

IT Respondents Report 5 Most Important
Metrics Are Operating Margin, Market Share,
Cost of Goods Sold, Shipments & Forecast Accuracy

Agenda

The Most Common Definition of
“Supply Chain Agility” for All 3 Groups Is
Adapting to Variations in Demand and Supply

All 3 Groups Believe That
Supply Chain Agility Is Important

For All 3 Groups, Less Than Half Think Their
Supply Chain Is Agile

Those in Supply Chain Report a Greater Gap in
Supply Chain Agility Importance vs. Performance

Those in Supply Chain Are Somewhat More Likely
to Report Increased Agility
Than Those in Finance

For All 3 Groups, the Top Techniques for
Improve Agility Include Improved Demand
Forecasting and Lean Manufacturing

Agenda

Those in Supply Chain Are More Likely Than
Finance and IT to Report Having a S&OP Process

Those More Likely to Have S&OP Process:
Have Supply Chain Organization or
Have Supply Chain Center of Excellence

Those in Supply Chain and Finance Are More
Likely to Report Having
Two or More S&OP Processes

For Those in Supply Chain, the Most Common
S&OP Goal Is the Most Mature:
Maximize Opportunity and Mitigate Risk

Nearly Half of Those in Supply Chain Report
That Their S&OP Process Is Effective

Among Supply Chain Respondents, S&OP
Performance Is Higher for Delivering Role-based
Views and Running What-if Analyses

For Supply Chain Respondents, the Top S&OP
Challenges Are Not Having Technologies
or Executive Support

Supply Chain Respondents Report Wanting a
Higher Frequency for S&OP Processes

Nearly Two in Five Supply Chain Respondents
Report That Their S&OP Plan Is Executed
Most or All of the Time

Collaborative Decision Making and Central
View of Data Are Top Ways S&OP Technology
Supports Supply Chain Agility

Nearly Two in Five Report the S&OP Group Has
Responsibility for S&OP Technology Budget,
Primarily Joint Responsibility

Agenda

Most Supply Chain Respondents Report Having
a Formal Supply Chain Organization,
but Less Than One-Third Have Chief SCO

Nearly Half of Supply Chain Respondents
with a Supply Chain Organization
Have Had One for Over 10 Years

Supply Chain Planning, Transportation and
Inventory Are Top Functions Reporting Through
the Supply Chain Organization

Most Supply Chain Leaders Report to
the CEO, COO or President

Demand and Supply Volatility Are Among Top
Supply Chain Pain for All Three Groups

While Those with a S&OP Process Report More
Pain About the Speed of Business,
Those Without it Report More Regulations Pain

Over One-Third of Those in Supply Chain Report
Having a Supply Chain “Center of Excellence”

Those More Likely to Have Supply Chain Center of
Excellence: Process Industry, Have Supply
Chain Organization, or Have S&OP Process

The Most Common Definition of
Supply Chain Excellence Is
“Right Product, Right Place, Right Time at Right Cost”

Most Important Functions of Supply Chain
Center of Excellence Are Planning, Identifying
Best Practices, and Strategy

Top Performing Functions of Supply Chain
Center of Excellence Are Planning, Goals,
Identifying Best Practices and Strategy

Facilitation of Horizontal Processes and
Inventory Strategies Are Functions
with Low Performing Relative to Importance

Over Half of Those with a Supply Chain Center
of Excellence Report It Is Effective

Agenda

Top Operational Finance Goal Is
Maximizing Profitability

For Most, Operational Finance Goals Are
Limited to the Company Only

Global Goal Setting and Regional Planning
Are Equally Common for Operational Finance

Half Report Company Success At
Meeting Operational Finance Goals

Agenda

One-Third of Those in IT Report Having IT
Members with Career Through
Line of Business Roles

IT Respondents Report IT Role Is Focused on
Keeping IT Safe and Driving Innovation

Organizational Alignment Study-Summary Charts-May 2013

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Organizational Alignment Study-Summary Charts-May 2013