Supplier Development Study - Feb-May 2016 - Summary Charts

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Supply Chain Insights LLC Copyright © 2016, p. 1

Supplier Development Study

Summary ChartsFebruary 2 – May 13, 2016

Supply Chain Insights LLC Copyright © 2016, p. 2

Agenda

Study Overview Supplier Development

Supply Chain Education

Scorecards

Alignment

Supply Chain Insights LLC Copyright © 2016, p. 3

Study Overview

Supply Chain Insights LLC Copyright © 2016, p. 4

Three-Quarters of Respondents Are Manufacturers

Supply Chain Insights LLC Copyright © 2016, p. 5

Respondents Are Generally Evenly Split by Discrete vs. Process Industries

Supply Chain Insights LLC Copyright © 2016, p. 6

Six in Ten of Respondents Are Buyers vs. Four in Ten Suppliers

Supply Chain Insights LLC Copyright © 2016, p. 7

Agenda

Study Overview

Supplier Development Supply Chain Education

Scorecards

Alignment

Supply Chain Insights LLC Copyright © 2016, p. 8

41% of Buyers Offer a Supplier DevelopmentProgram; 58% of Suppliers Participate in One

Supply Chain Insights LLC Copyright © 2016, p. 9

15% of Suppliers Participate in Only ONE SupplierDevelopment Program

Supply Chain Insights LLC Copyright © 2016, p. 10

Buyers Are More Likely to Have a Supplier DiversityProgram Compared to Supplier Development

Supply Chain Insights LLC Copyright © 2016, p. 11

Most Buyers in the Study Are Part of theSourcing and Buying Organization

Supply Chain Insights LLC Copyright © 2016, p. 12

Buyers Report a Great Supplier Development Program IsCollaborative, Performance-Focused & Accountable

Supply Chain Insights LLC Copyright © 2016, p. 13

Suppliers Report a Great Supplier Development Program Is Focused on Growth, Best Practices, Support and Wholistic

Supply Chain Insights LLC Copyright © 2016, p. 14

Buyers Report a Variety of Reasons forTheir Supplier Development Program

Supply Chain Insights LLC Copyright © 2016, p. 15

Nearly One-Quarter of Total Buyers Report PerformingWell on Supplier Development

Supply Chain Insights LLC Copyright © 2016, p. 16

Suppliers Are More Likely to Get Resistance from BuyersThan Buyers Are to Get Internal Resistance

Supply Chain Insights LLC Copyright © 2016, p. 17

Overall, Those with Supplier Development ProgramsReport Most Resistance Around Legacy Relationships

and Onboarding New Suppliers

Supply Chain Insights LLC Copyright © 2016, p. 18

Legacy Supplier Relationships Are Among Top Resistance Reasons for Both Buyers and Suppliers

Supply Chain Insights LLC Copyright © 2016, p. 19

Top Supplier Development Program Strengths: Relationships and Excellence Definition

Supply Chain Insights LLC Copyright © 2016, p. 20

Agenda

Study Overview

Supplier Development

Supply Chain Education Scorecards

Alignment

Supply Chain Insights LLC Copyright © 2016, p. 21

58% of Buyers Offer Supply Chain Education While 85% of Suppliers Participate in It

Supply Chain Insights LLC Copyright © 2016, p. 22

For Both Buyers and Suppliers, Process ImprovementIs Among Most Common Supply Chain Education Program

Supply Chain Insights LLC Copyright © 2016, p. 23

Process Improvement Programs Are Most ImportantSupply Chain Education Programs for Buyers

Supply Chain Insights LLC Copyright © 2016, p. 24

Process Improvement Programs Are AlsoMost Effective Among Buyers

Supply Chain Insights LLC Copyright © 2016, p. 25

Among Buyers, There Is Little Gap Between Effectivenessand Importance of Supply Chain Education Programs

Supply Chain Insights LLC Copyright © 2016, p. 26

Process Improvement Programs Are Most ImportantSupply Chain Education Programs for Suppliers

Supply Chain Insights LLC Copyright © 2016, p. 27

Process Improvement Programs Are AlsoMost Effective Among Suppliers

Supply Chain Insights LLC Copyright © 2016, p. 28

Among Suppliers, Process Improvement ProgramsHave the Greatest Performance Gap

Supply Chain Insights LLC Copyright © 2016, p. 29

Agenda

Study Overview

Supplier Development

Supply Chain Education

Scorecards Alignment

Supply Chain Insights LLC Copyright © 2016, p. 30

Over Two-Thirds of Buyers Use Scorecards;Over Half of Them Rate Scorecards As Effective

Supply Chain Insights LLC Copyright © 2016, p. 31

Buyers’ Most Common Scorecard Measurements Are Product Quality and On-Time Delivery

Supply Chain Insights LLC Copyright © 2016, p. 32

Agenda

Study Overview

Supplier Development

Supply Chain Education

Scorecards

Alignment

Supply Chain Insights LLC Copyright © 2016, p. 33

For Buyers, Supply Chain Is More Aligned with ProcurementThan with Finance

Supply Chain Insights LLC Copyright © 2016, p. 34

For Buyers, the Greatest Performance Gap in AlignmentIs for Procurement-Finance

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