Vendor Managed Inventory Strategies! Summary Results September 2013!
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1 Vendor Managed Inventory Strategies! Summary Results September 2013!
2 Program Overview! Ø Ø Ø Ø Ø Gatepoint Research invited selected execu4ves from the manufacturing, retail, telecom, and wholesale sectors to par4cipate in a survey themed Strategies for Vendor Managed Inventory. Candidates were invited via and 200 execu4ves have par4cipated to date. Survey par4cipants were senior IT, supply chain, finance, and logis4cs decision makers. 5% held 4tle the CxO; 32% were VPs; 61% were Directors, and 2% were Managers. Responders overwhelmingly worked for large firms: of the companies represented by survey par4cipants, 67% had annual revenues of greater than $1.5 billion, 22% had annual revenues between $500 million and $1.5 billion, 11% had revenue of less than $500 million. 100% of responders par4cipated voluntarily; none were engaged using telemarke4ng. Summary Results September 2013!
3 Observations and Conclusions! Ø 49% of responders use consigned inventory at their buyer s VMI loca4on. Ø Nearly half of responders employ VMI programs with buy- side suppliers. Ø 63% don't always have adequate visibility into their current inventory levels. Ø Responders s4ll don t have access to real 4me informa4on. More than three quarters rely on batch informa4on for inventory and order informa4on. 90% rely on batch informa4on for forecas4ng. Ø 69% rate themselves as on- par or worse than their compe4tors on industry turns; 12% are unsure how they compare. About a third don't feel partner collabora4on is adequate. Summary Results September 2013!
4 What types of Vendor Managed Inventory (VMI) are you currently using or planning to use?! Consigned inventory at buyer s VMI loca4on 49% VMI at third- party logis4cs provider hub 37% Unallocated inventory stock at supplier virtual hubs 28% None, and no plans to implement anything 22% Other 4% 0% 10% 20% 30% 40% 50% 60% 49% of responders use consigned inventory at their Summary buyer s Results VMI September location.! 2013!
5 Where in your supply chain do you employ VMI programs?! Buy- side with suppliers 48% Sell- side with fulfillment partners (distributors, retailers, etc) 19% Both 30% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Nearly half of responders employ VMI programs with Summary buy-side Results suppliers.! September 2013!
6 Do you have enough visibility into your current inventory levels?! Never 2% Often 50% Always 35% Not Always 63% Not Very Often 13% 63% don't always have adequate visibility into their Summary current Results inventory September levels.! 2013!
7 How do you and your partners share inventory information?! Manually , fax, etc. 28% Directly via our ERP system 20% B2B integra4on between inventory systems 15% VAN or other data network 7% Other 5% 0% 5% 10% 15% 20% 25% 30% 28% of responders mostly share inventory information with partners manually. 15% have B2B integration between Summary Results systems.! September 2013!
8 How timely are the Forecast, Inventory, and Order information that you and your partners share?! Real- Time Batch - more than once per day Batch - daily Batch- less than daily Ad hoc Order Informa4on 22% 19% 23% 17% 18% Inventory 20% 13% 27% 21% 18% Forecast 10% 10% 20% 29% 31% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Most responders still don t have access to real time information Summary for forecasting, Results September inventory and 2013! orders.!
9 Assess your ability to manage inventory levels.! Too much cash 4ed up in inventory 38% Too much excess and/or obsolete inventory Costs and service levels are op4mized 30% 31% Effec4ve but too costly 19% No- frequent stock- outs and/or low service levels 16% Don t know 11% 0% 5% 10% 15% 20% 25% 30% 35% 40% 38% complain that they have too much cash tied up in Summary Results inventory.! September 2013!
10 How do your inventory turns compare with your industry average?! 60% 54% 50% 40% 30% 20% 20% 15% 12% 10% 0% Beher On par Worse Don t know 69% rate themselves as on-par or worse than their competitors on industry turns; 12% are unsure how they compare.! Summary Results September 2013!!
11 How well do you collaborate with trading partners on inventory management processes?! Very well 14% Well 56% Not very well 29% Poorly 2% 0% 10% 20% 30% 40% 50% 60% About a third don't feel partner collaboration is adequate.! Summary Results September 2013!
12 Profile of Responders: Revenue! <$250 million 6% $ million 5% >$1.5billion 67% $500 million - $1.5 billion 22% 67% work in the Fortune 1000.! Summary Results September 2013!
13 Profile of Responders: Job Level! CxO 5% VP 32% Director 61% Manager 2% Responders are overwhelmingly senior management: 61% are Directors, 32% Summary are VPs, Results and 5% September are CxOs.! 2013!
14 E2open (NASDAQ: EOPN) is a leading provider of cloud- based, on- demand sokware solu4ons enabling enterprises to procure, manufacture, sell, and distribute products more efficiently through collabora4ve planning and execu4on across global trading networks. Enterprises use E2open solu4ons to gain visibility into and control over their trading networks through the real- 4me informa4on, integrated business processes, and advanced analy4cs that E2open provides. E2open customers include Celes4ca, Cisco, HGST, HP, IBM, Lenovo, L'Oréal, LSI, Motorola Solu4ons, Seagate, and Vodafone. E2open is headquartered in Foster City, California with opera4ons worldwide. For more informa4on, visit Summary Results September 2013!
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