strategies for managing supply chain disruption

Strategies for Managing Supply Chain Disruption Strategies for Managing Supply Chain Disruption

Summary Results October, 2012Summary Results October, 2012

ConfidentialConfidential

Observations and ConclusionsObservations and Conclusions

Unplanned demand (68%), supplier failure (62%) and natural disaster (60%) are the primary sources of

supply chain disruption.

Among responders, supply chain disruptions originate almost equally between the demand side and tier

one suppliers.

Nearly a quarter of responders report that they do not have the tools in place to resolve a supply chain

disruption.

34% f d t f l h i di ti til th 24 h ft it 34% of responders are not aware of supply chain disruptions until more than 24 hours after it occurs;

nearly 20% take more than a week to respond.

38% of responders rated visibility into their tier-1 supplier inventories as a priority or high priority for the

next year.

Supply chain disruptions in 2011 caused 68% of responders to make adjustments to their existing

solutions/processes.

Copyright © 2012. Gatepoint Research. All rights reserved. The information contained in this report is the sole propertyof Gatepoint Research and may not be used, reproduced, redistributed in any form including, but not limited to, print

and digital form without the express written consent of Gatepoint Research and E2Open.

Program OverviewProgram Overview

Between February and September 2012, Gatepoint Research invited selected y p p

executives to participate in a survey themed Strategies for Managing

Supply Chain Disruption. Candidates were invited via email and 200

executives have participated to date.

Responders are overwhelmingly senior executives: 98% are at the Director

Level or above with 29% at VP or CxO level.

77% of responders are executives working for companies in the Fortune 1000.

100% of responders participated voluntarily; none were engaged using

telemarketing.



From what sources have you encountered supply chain disruption?

From what sources have you encountered supply chain disruption?

68%Unplanned demand

60%

62%

68%

i di i

Natural disaster

Supplier failure

Unplanned demand

8%

49%

55%

Political upheaval

Critical parts shortages

Transportation disruption

2%

3%

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

Other

None

Unplanned demand, supplier failure and natural disaster are the primary sources of supply chain disruption



primary sources of supply chain disruption.

How did supply chain disruptions in 2011 impact your risk mitigation strategies for 2012 and beyond?

How did supply chain disruptions in 2011 impact your risk mitigation strategies for 2012 and beyond?

68%Making adjustments to

18%

68%

Had little or no impact

g jexisting solutions/processes

7%Thinking about making

changes

6%

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

Investing heavily in new solutions/processes

Most responders approach risk mitigation by making adjustments to their existing solutions and processes



their existing solutions and processes.

Where in your supply chain do most disruptions originate?

Where in your supply chain do most disruptions originate?

30%

33%

Tier 1 suppliers

Demand side

24%Lower tier suppliers

12%

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

Unable to determine

Supply chain disruptions originate almost equally between the demand side and tier one suppliers

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



demand side and tier one suppliers.

Typically, how soon are you aware of a supply chain disruption?

Typically, how soon are you aware of a supply chain disruption?

8%Longer than a week

26%

8%

Within a week

Longer than a week

33%

19%

Same day

Next day

14%

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

Real‐Time

34% of responders are not aware of supply chain disruptions until more than 24 hours after it occurs



disruptions until more than 24 hours after it occurs.

How quickly can you respond to most supply chain disruptions?

How quickly can you respond to most supply chain disruptions?

19%L th k

34%

19%

Within a week

Longer than a week

26%

12%

Same day

Next day

9%

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

Real‐Time

Nearly 20% of responders take more than a week to respond to supply chain disruptions



respond to supply chain disruptions.

What would you like to improve or implement in the next 12 months?What would you like to improve or implement in the next 12 months?

Priority for Improvement in Next 12 Months (Rated 4 or 5 on a 5 point scale)

36%

38%

Partner collaboration tools

Visibility into tier‐1 supplier inventories

30%

30%

Comprehensive partner connectivity

What‐if scenario tools

24%

30%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Visibility into lower tier supplier inventories

Visibility into alternative sources of supply

38% of responders rated visibility into their tier-1 supplier inventories as a priority or high priority for the next year

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%



inventories as a priority or high priority for the next year.

Who in your organization is responsible for mitigating the risk of supply chain disruptions?

Who in your organization is responsible for mitigating the risk of supply chain disruptions?

/

12%

80%

COO

CSCO/VP supply chain

11%Other

5%

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

CFO

Most responders report that the CSCO or VP for Supply Chain is responsible for mitigating risk of supply chain disruptions



responsible for mitigating risk of supply chain disruptions.

Profile of Responders: Job Level

Profile of Responders: Job Level

Manager2%

VP/CxO29%

Director69%

98% of responders are at Director level or above.



Profile of Responders: Company Revenue

Profile of Responders: Company Revenue

<$250 Million2% $250‐499

MillionMillion3%

$$500 million ‐$1.5 billion

18%>$1.5 Billion77%

77% of responders are employed by companies in the Fortune 1000.



About About

E2open is a leading provider of cloud-based software solutions for collaborative execution across global trading networks. E2open delivers real-time information, integrated business processes, and advanced analytics to help brand owners manage demand theyadvanced analytics to help brand owners manage demand they cannot predict and supply they do not control.

For more information visit www E2open comFor more information, visit www.E2open.com



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