2015 supply chain trends

JABIL SPONSORED A SURVEY OFELECTRONICS MANUFACTURERS and asked

questions on a variety of topics related to their supply chainincluding VISIBILITY, FACTORY-OF-THE-FUTURETECHNOLOGY, INTERNET OF THINGS and more.

SUPPLY CHAIN2015

FACTORY OF THE FUTURE TECHNOLOGIESVALUABLE TO BUSINESS:

54%

53%

52%

48%

46%

38%

37%

36%

Advanced materials technology

Predictive supply chain analytics

Increased manufacturing automation

Modular assembly

Rapid prototyping

Robotics

Virtual reality design and prototyping

3D printing

WOULD YOU LAUNCH NEW OR UPGRADEDPRODUCTS MORE FREQUENTLY IF:

80%YES

20% NO

your company’s manufacturingprocesses supportedfaster delivery?

78%YES

22% NO

your company’s manufacturingprocesses supported morecost effective delivery?

OF THE FUTURE

WHAT OBSTACLES DO YOU FACE WITH YOUR EXISTINGMANUFACTURING PROCESSES?

58%

difficult tochange existing

processes

54%

expensive tomake changesin production

45%

manualprocesses are

too slow or error prone

35%

cost of labor isdriving up costs

29%

does not copewell with complex

product designs

26%

no flexibility tointegrate new

product components

57%HAS YOUR COMPANY EVER PASSEDON A PRODUCT IDEA BECAUSEEXISTING MANUFACTURINGPROCESSES WERE INSUFFICIENT?

said YES

SUPPLY CHAIN

DO YOU FACE CHALLENGESWITH VISIBILITY INTO THE

STATUS OF YOUR END-TO-ENDSUPPLY CHAIN?

89%YES

58% difficult to track and reporton vendor services levels

must maintain excessinventory to mitigate risk61%

BIGGEST VISIBILITYCHALLENGES

70%

DOES LACK OF VISIBILITYINTRODUCE RISK IN ANY AREAS OF

YOUR SUPPLY CHAIN?

YES96%AREAS WITHMOST RISK:

long lead times

extra shipping time

difficult to manage capacity

hard to change location

hard to manage part quality

58%

53%

42%

25%

47%

HOW MUCH OF YOUR SUPPLYCHAIN CAN BE TRACKED

WITH REAL-TIMESTATUS UPDATES?

HAVE REAL-TIMESTATUS UPDATESfor LESS THANHALF of theirsupply chain

dashboard withend-to-end visibility

real timeproblem alerts

excess inventory orshortage reports

risk assessmentreporting

WHICH CAPABILITIES FOR INCREASINGVISIBILITY AND MANAGEMENT OF YOUR

SUPPLY CHAIN DO YOU FIND VALUABLE?

HAS YOUR COMPANYEVER ABANDONED A PRODUCTIDEA BECAUSE OF THE PRICE OR

COMPLEXITY OF PROCURINGCOMPONENTS?

51%YES

49%NO

WHAT BENEFITS COULDYOU GAIN IF YOUR SUPPLY

CHAIN PARTNERS ANDVENDORS HELPED YOU

WITH COMPONENTPROCUREMENT?

67%

58%

55%

49%

42%

better integration of procurementand inventory management

expertise in materials marketplace

diminished component cost throughvolume purchasing

streamlined negotiation andcontracts processing

independent, timely review ofsuppliers and components

HOW VALUABLE WOULD IT BE TOWORK WITH A MANUFACTURINGPARTNER THAT PROVIDESSOLUTIONS FROM IDEATO DISTRIBUTION?

93%

find it very or somewhat valuable

IN THE CASE OF AN EXTREME GLOBAL WEATHEREVENT HOW LONG WOULD IT TAKE YOU TO FULLY

UNDERSTAND THE IMPACT ON YOUR SUPPLY CHAIN?

would takea few days!

55%

would takea few weeks!

27%

50%

47%

46%

44%

40%

40%

37%

33%

SKILLS NEED TO ACQUIRE OR HAVE ACQUIREDTO DELIVER “THINGS” SOLUTIONS:

analytics

user experience and usability

device software

cloud technologies for connecting and storing information

sensors

inter-device communications

big data

security

INTERNET OF THINGS

WHAT IS THE STATUS OF YOURCOMPANY’S PRODUCTS FOR THE

INTERNET OF THINGS (IOT)?

30%are in production

25%

23%

have no plan

are in development

22%are planing to develop

WHAT POTENTIAL VALUE DO YOU SEE IN USING DATACONNECTED BY “THINGS” TO

DRIVE PRODUCT INNOVATION?

57% 55% 53% 47% 31%

deliveradditionalproductcapabilities

creatingnewproducts,servicesor businessmodels

understandfailure toincreasequality

measurefeatureusage toimpact userdesign

changingpackagingbased onsales metrics

DO YOU HAVE IN-HOUSE EXPERTISETODAY TO HELP YOU FULLYDELIVER IOT SOLUTIONS?

38% lack key areas

23% lack all areas

39% lack most, but not all areas

77%are lacking!

Jabil offers a diverse range of solutions that enable customers to move with speed and certainty in a worldof constant change. Our best-in-class engineers enable customers to use technologies like embeddedcameras, sensors, energy harvesting and complex device integration to lead their markets with nextgeneration product advancements. Decades of cutting-edge expertise in capabilities like advanced

automation, additive manufacturing, active alignment and numerous process innovation techniques bring the Factory of the Future to customers today. And our intelligent digital supply chain solutions, including Jabil InControl, provide unparalleled tools and techniques to increase visibility into supply chain risks and

opportunities to further customers’ success.

Visit Jabil.com

Survey conducted by Dimensional Research,www.dimensionalresearch.com.