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Summary Results • September 2013!
Vendor Managed Inventory Strategies!
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.
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!
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
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
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%
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
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
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
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
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
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%
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%
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!