Inventory Optimization 2015 Preliminary Summary Charts

Supply Chain Insights LLC Copyright © 2015, p. 1
Inventory Optimization
Study
Preliminary Summary Charts
February – May, 2015

Agenda
 Study Overview
 Inventory Optimization Software
 Inventory Management
 Team Alignment and Business Pain

Study Overview

Most Respondents Are Manufacturers and
Most Work in a Process Industry

The Most Common Industries Are CPG, Food & Beverage
and Chemical

Company Revenue Is $6B on Average

Most Respondents Work in a Supply Chain Role, Work at a
Director/Manager Level, and Are Based in US & Canada

Agenda
 Study Overview

Inventory Optimization Provider Categorization

Nearly Half Have Advanced Software
for Most Important; SAP Is Most Common Provider

SAP Is Most Common Provider Overall and
for Advanced Software

Nearly Half Are Satisfied with Their
Most Important Inventory Software

Sample Responses for Why Satisfied with
Inventory Optimization Software

Sample Responses for Why NOT Satisfied with
Inventory Optimization Software

Nearly Two-Fifths Have Achieved ROI and Over
One-Quarter Can Match “Top-Down” and “Bottom-Up”

Most Common Way for Those with Advanced Software
to Improve Inventory Is Inventory Optimization Software

For Those with Advanced Software, Supply Chain Group
Is Most Likely Sponsor and to Have within KPIs

For Those with Advanced Software, Supply Chain Group
Is Most Likely to Have it within KPIs

Agenda
 Study Overview

Half Consider Company to Be Effective at
Making Inventory Decisions

Sample Responses for Why Effective
at Making Inventory Decisions

Sample Responses for Why NOT Effective at
Making Inventory Decisions

Nearly Half Reduced Inventory in 2014;
Primary Reason Is Greater Attention to Detail on
Inventory Performance

Cycle Counting Is Most Common Way to Control
Inventory Accuracy

Important Inventory Goals Needing Attention:
S&OP Maturity, Leadership Understanding, and
Adherence to Inventory Targets

Maturity of S&OP Is Most Important Inventory Goal,
but Not Performing Well

Chief SC Officers and Functional VPs Understand Inventory
Strategies Notably Better Than Do P&L Owners

Agenda
 Study Overview

Sales & Marketing Alignment Is Most Important and
Top Performing

Greatest Gaps in Alignment:
Operations & IT, Sales & Operations,
and Manufacturing & Procurement

Increasing Business Pain Expected for Speed of Business,
Risk, Talent, Value Networks, Globalization, and Innovation

Consistently High Pain Reported for Demand/Supply
Volatility and Cross-Functional Alignment

Overall Increases in Business Pain Expected Mostly for
Increasing Speed of Business, Risk Management, and Talent

Since Five Years Ago, Decreases in Business Pain Reported
for Clarity of Business Strategy and Software Usability

Increases in Business Pain Expected Mostly for Risk
Management, Innovation, and Increasing Speed of Business

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