Webinar: Trends in Supply Chain Visibility

Trends in Supply Chain Visibility

February 11, 2016

E2OPEN CONFIDENTIAL | © 2016 E2open2

Speaker: Patrick Lemoine, E2open

As VP Product Marketing, Patrick Lemoine is in charge of E2open’s product positioning and company messaging. Patrick has more than 20 years of supply chain experience, as well as deep knowledge of the high-tech and automotive industries. He started his career as a consultant with McKinsey and Company and spent the last 15 years in the enterprise software space with companies such as i2, flexis AG, LogicTools, and SAP. Patrick holds an MBA from Stanford University.


Introduction

• Key trends in supply chain management: • Limited buffer in the system due to on-going cost reduction / lean SC

• Demand difficult to anticipate: Product proliferation, innovation, multiple channels

• Extended supply chains, with many outside partners (Outsourcing)

• Visibility is key

• Time to get an update!


Survey Summary

• 101 Executives Participated

• 79% of responders work in Fortune 1000 companies with revenues over $1.5 billion.

• Participants represented firms from a wide variety of industries including general manufacturing, high tech manufacturing, retail trade, telecom and media.


The results show that companies benefit from their visibility initiatives


4 out 5 companies have visibility beyond their organization

20%

7%

12%

20%

66%

0% 10% 20% 30% 40% 50% 60% 70%

We do not have in-transit visibility

Between Tier 4 and Tier 3



Between Tier 1 and Me


2 out of 3 companies get information in less than a day

14%

18%

36%

17%

7%

6%

2%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Real-time

Less than 8 hours

Less than 24 hours

Less than 72 hours

Less than one week

Less than one month

More than onemonth


Ensuring that demand can be fulfilled is the key objective

78%

70%

46%

40%

28%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

To ensure continuity of supply

To get early warning of supply chainproblems or disruptions

To enable agile response tounexpected changes in supply

To enable agile response tounexpected changes in demand

To monitor trading partnercompliance with commitments

This shows why timeliness is so important.


Most companies focus on material visibility

80% 78%

54%

23%

Orders Inventory levels Capacity Upside

Tactical focus


Most companies do not fully leverage the full benefits of supply chain visibility


Visibility: How leading companies do it?

• Faster updates, as required by the speed of business

• True multi-tier visibility• Detect issues faster, therefore more time to react, more chances to avoid the problem

• Avoid the second-guessing / buffering / over-reacting

• Required for more advanced forms of replenishment/VMI (Using sell-through information)

• Using visibility information for planning, not only tactical firefighting• Gives more context and insights, enabling better decisions

• Exchange other information such as capacity, upside• Replacing static assumptions with accurate information leads to a more accurate plan


More advanced companies exchange strategic information

80% 78%

54%

23%

Orders Inventory levels Capacity Upside

Strategic information









• Visibility as a two-way communication, not a reporting tool• Visibility, collaboration, execution









• Visibility as a two-way communication, not a reporting tool• Visibility, collaboration, execution

• Trading partner coverage close to 100%


Lessons Learned


Recommended actions

• Extend visibility from 1 to n-tiers

• Use the visibilty information for your planning process

• Make sure that visibilty is bi-directional

• Onboard all trading partners


Thank You

Technology

Webinar: Trends in Supply Chain Visibility