vendor managed inventory strategies - e2openinfo.e2open.com/rs/e2open/images/vendor managed...

14
Summary Results September 2013 Vendor Managed Inventory Strategies

Upload: vutuyen

Post on 30-Nov-2018

225 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!

Vendor Managed Inventory Strategies!

Page 2: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

Program Overview!

2013!

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.  

Ø  Candidates  were  invited  via  email  and  200  execu4ves  have  par4cipated  to  date.  

Ø  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.  

Ø  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.  

Ø  100%  of  responders  par4cipated  voluntarily;  none  were  engaged  using  telemarke4ng.  

Page 3: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

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.  

2013!

Page 4: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

What types of Vendor Managed Inventory (VMI) are you currently using or planning to use?!

2013!

49% of responders use consigned inventory at their buyer’s VMI location.!

49%  

37%  

28%  

22%  

4%  

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

Consigned  inventory    at  buyer’s  VMI  loca4on  

VMI  at  third-­‐party    logis4cs  provider  hub  

Unallocated  inventory  stock    at  supplier  “virtual”  hubs  

None,  and  no  plans    to  implement  anything  

Other  

Page 5: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

Where in your supply chain do you employ VMI programs?!

2013!

Nearly half of responders employ VMI programs with buy-side suppliers.!

48%  

19%  

30%  

0%   5%   10%   15%   20%   25%   30%   35%   40%   45%   50%  

Buy-­‐side    with  suppliers  

Sell-­‐side  with    fulfillment  partners    

(distributors,    retailers,  etc)  

Both  

Page 6: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

Do you have enough visibility into your current inventory levels?!

2013!

63% don't always have adequate visibility into their current inventory levels.!

Always 35%

Often 50%

Not Very Often 13%

Never 2%

Not Always 63%

Page 7: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

How do you and your partners share inventory information?!

2013!

28% of responders mostly share inventory information with partners manually. 15% have B2B integration between

systems.!

28%  

20%  

15%  

7%  

5%  

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

Manually  –  email,  fax,  etc.  

Directly  via  our  ERP  system  

B2B  integra4on  between    inventory  systems  

VAN  or  other  data  network  

Other  

Page 8: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

How timely are the Forecast, Inventory, and Order information that you and your partners share?!

2013!

Most responders still don’t have access to real time information for forecasting, inventory and orders.!

10%  

20%  

22%  

10%  

13%  

19%  

20%  

27%  

23%  

29%  

21%  

17%  

31%  

18%  

18%  

0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%  

Forecast  

Inventory  

Order    Informa4on  

Real-­‐Time   Batch  -­‐  more  than  once  per  day   Batch  -­‐  daily   Batch-­‐  less  than  daily   Ad  hoc  

Page 9: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

Assess your ability to manage inventory levels.!

2013!

38% complain that they have too much cash tied up in inventory.!

38%  

31%  

30%  

19%  

16%  

11%  

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

Too  much  cash    4ed  up  in  inventory  

Too  much  excess    and/or  obsolete  inventory  

Costs  and  service    levels  are  op4mized  

Effec4ve  but  too  costly  

No-­‐frequent  stock-­‐outs    and/or  low  service  levels  

Don’t  know  

Page 10: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

How do your inventory turns compare with your industry average? !

2013!

69% rate themselves as on-par or worse than their competitors on industry turns; 12% are unsure how they compare.!

!

20%  

54%  

15%  12%  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

Beher   On  par   Worse   Don’t  know  

Page 11: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

How well do you collaborate with trading partners on inventory management processes?!

2013!

About a third don't feel partner collaboration is adequate.!

14%  

56%  

29%  

2%  

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

Very  well  

Well  

Not  very  well  

Poorly  

Page 12: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

Profile of Responders:Revenue!

2013!

67% work in the Fortune 1000.!

<$250 million 6%

$250 - 500 million

5%

$500 million - $1.5 billion

22%

>$1.5billion 67%

Page 13: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

Profile of Responders:Job Level!

2013!

Responders are overwhelmingly senior management: 61% are Directors, 32% are VPs, and 5% are CxOs.!

CxO    5%  

VP  32%  

Director  61%  

Manager  2%  

Page 14: Vendor Managed Inventory Strategies - E2openinfo.e2open.com/rs/e2open/images/Vendor Managed Inventory... · Vendor Managed Inventory Strategies! Summary Results • September 2013!

Summary Results • September 2013!The information contained in this report is the sole property of 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.!

Copyright © . Gatepoint Research. All rights reserved.!

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  www.e2open.com.      

2013!