Executive Summary Teams claim that they are building end-to-end supply chain processes; but we do not find that this is true. Despite the growing need to automate the extended supply chain, the focus of most companies is on enterprise automation. The process flows of the extended supply chain are dependent on spreadsheets and Electronic Data Interchange (EDI). It is not sufficient. Companies want better supply chain visibility. The gaps in current supply chain capabilities are large. While EDI is effective in moving transactional data, it is point to point lacking community interaction. Companies are seeking new and deeper forms of supply chain visibility through business networks. It takes many forms. It is foundational to deliver on the promise of agility. They want to be more agile and the current IT architectures are not meeting this need. High level survey findings are: • Outsourcing is a Reality. It is here to Stay. For the average company, outsourcing of manufacturing and transportation is a reality. In the study, approximately ninety percent of respondents report having some level of outsourcing. Thirty percent outsource forty percent or more of their manufacturing and fifty-five percent outsource at least forty percent of their logistics on a volume basis. • Supply Chain Visibility has Many Forms. Few are Being Delivered Well. The term supply chain visibility is a nebulous term with many meanings. There is no standard definition. In this report, we share insights on the forms of visibility and the issues with each. Visibility within the company is being addressed by current IT architectures; but B2B architectures to support emerging supply chain visibility requirements are evolving. • The Gaps in Supply Chain Visibility are Large. The Satisfaction with EDI is high. The Confidence in ERP to Close the Gap is Low. The average company with ERP has seven different ERP instances and forty-nine percent of respondents report ERP spending plays a major role in their IT budget. However, as shown in this report, the gaps for supply chain visibility are high and the confidence that ERP implementations can close the gaps is low. As a result, the extended supply chain runs on EDI and spreadsheets. In the words of one supply chain leader that we interviewed, “Today, it is much like chewing gum, bailing wire and a shoestring.” In this report, we give an overview of the current state of supply chain visibility--the different forms and the state of each-- and share insights on current levels of importance and performance. We then look critically at current efforts of IT investment/focus and give recommendations on how business users can work with IT teams to close these gaps.

1. Supply Chain Visibility in
Business Networks Study
Summary Charts
2014

2. Agenda
Supply Chain Insights LLC Copyright © 2014, p. 2

3. Study Overview
Supply Chain Insights LLC Copyright © 2014, p. 3

4. Over 80% of Respondents Were Manufacturers
Supply Chain Insights LLC Copyright © 2014, p. 4

5. Nearly 2/3 of Respondents Worked
in a “Process” Industry
Supply Chain Insights LLC Copyright © 2014, p. 5

6. Nine in Ten Respondents Worked in a Supply Chain Role,
Especially Planning, Operations and Logistics
Supply Chain Insights LLC Copyright © 2014, p. 6

7. For Over 80% of Respondents, Their Supply Chain
Leader Reports to the CEO, COO, President or GM
Supply Chain Insights LLC Copyright © 2014, p. 7

8. Agenda
Supply Chain Insights LLC Copyright © 2014, p. 8

9. Companies Outsource an Average of
32% of Manufacturing and 48% of Logistics
Supply Chain Insights LLC Copyright © 2014, p. 9

10. Top Expected Changes to Impact Supplier Network:
Electronic Data Improvements &
Production Capacity Constraints
Supply Chain Insights LLC Copyright © 2014, p. 10

11. No Difference Between Process and Non-Process Industries
for Top Two Expected Changes to Impact Supplier Network
Supply Chain Insights LLC Copyright © 2014, p. 11

12. Top Expected Changes to Impact Logistics Network:
Collaborative Logistics and Carbon Reduction Initiatives
Supply Chain Insights LLC Copyright © 2014, p. 12

13. No Difference Between Process and Non-Process Industries
for Top Two Expected Changes to Impact Logistics Network
Supply Chain Insights LLC Copyright © 2014, p. 13

14. Nine in Ten Have an ERP System –
6.5 Instances on Average
Supply Chain Insights LLC Copyright © 2014, p. 14

15. Non-Process Industry Respondents Are More Likely
to Report Having Any ERP Systems
Supply Chain Insights LLC Copyright © 2014, p. 15

16. Among Most Important and Top Areas of Visibility:
Transaction and Supply Chain Decisions within the Company
Supply Chain Insights LLC Copyright © 2014, p. 16

17. Greatest Gaps in Visibility Importance vs. Performance:
Inter-enterprise Order Management, 1st Tier Suppliers
and Transportation & Logistics Network
Supply Chain Insights LLC Copyright © 2014, p. 17

18. Among Most Important Visibility for Process and Non-Process:
Transportation and Logistics Network
Supply Chain Insights LLC Copyright © 2014, p. 18

19. Among Top Visibility for Process and Non-Process :
Transactions and Supply Chain Decisions within the Company
Supply Chain Insights LLC Copyright © 2014, p. 19

20. Most Confidence in ERP Provider Giving Visibility:
Manufacturing within the Company and
Transactions & Supply Chain Decisions within the Company
Supply Chain Insights LLC Copyright © 2014, p. 20

21. Most Important and Top Performing on ERP Confidence Are
Same for Process and Non-Process Industries
Supply Chain Insights LLC Copyright © 2014, p. 21

22. Greatest Gaps in ERP Confidence vs. Importance:
Third-party Logistics, Transportation & Logistics,
and First Tier Material Suppliers
Supply Chain Insights LLC Copyright © 2014, p. 22

23. Highest Performance and ERP Confidence:
Manufacturing and Transactions within Company
Supply Chain Insights LLC Copyright © 2014, p. 23

24. Supply Chain Visibility Infographic
Supply Chain Insights LLC Copyright © 2014, p. 24

25. Agenda
Supply Chain Insights LLC Copyright © 2014, p. 25

26. Top Definition of IT Organization’s Role:
Keeping IT Systems Safe and Secure
Supply Chain Insights LLC Copyright © 2014, p. 26

27. Process Industries Are More Likely to See Role of IT
as Driving Innovation; Non-Process Industries Are
More Likely to Say Maintenance of Reference Data
Supply Chain Insights LLC Copyright © 2014, p. 27

28. Half Report and IT and Supply Chain Jointly Decide on
Supply Chain Technology Funding
Supply Chain Insights LLC Copyright © 2014, p. 28

29. Two-in-Five Report IT Projects
Meet Line-of-Business Objectives
Supply Chain Insights LLC Copyright © 2014, p. 29

30. Those in Process Industries Are Somewhat More Likely to
Report IT Projects Meet Line-of-Business Objectives
Supply Chain Insights LLC Copyright © 2014, p. 30

31. One-Third Report Being More Likely to Pick Technology
Based on the Vendor Over the Functionality
Supply Chain Insights LLC Copyright © 2014, p. 31

32. Nearly Half Report ERP Spending
Played Major Role in 2013 IT Budget
Supply Chain Insights LLC Copyright © 2014, p. 32

33. Where Best Able to Meet Business Requirements:
Order Execution, Manufacturing and
Transactional Efficiency
Supply Chain Insights LLC Copyright © 2014, p. 33

34. Process Industries Better Able Than Non-Process
to Meet Requirements for Supply Planning
Supply Chain Insights LLC Copyright © 2014, p. 34

35. Agenda
Supply Chain Insights LLC Copyright © 2014, p. 35

36. Most Common B2B Solutions:
EDI/XML, Phone/Email/Fax/Postal and Spreadsheets
Supply Chain Insights LLC Copyright © 2014, p. 36

37. EDI/XML Among Most Common Solution for
Process and Non-Process Industries
Supply Chain Insights LLC Copyright © 2014, p. 37

38. Most Important and Top Performing B2B Solution:
Electronic Data Interchange
Supply Chain Insights LLC Copyright © 2014, p. 38

39. Greatest Gaps in B2B Solution Importance vs. Performance:
Phone/Email/Fax/Postal and Spreadsheets
Supply Chain Insights LLC Copyright © 2014, p. 39

40. Agenda
Supply Chain Insights LLC Copyright © 2014, p. 40

41. Just Over One Quarter Use
the Most Mature Definition of Agility
Supply Chain Insights LLC Copyright © 2014, p. 41

42. While Nearly All Believe Supply Chain Agility Is Important,
Only 38% Report Their Own Supply Chain Is Agile
Supply Chain Insights LLC Copyright © 2014, p. 42

43. Those in Process Industries Rate Themselves
Somewhat Higher on Supply Chain Agility
Supply Chain Insights LLC Copyright © 2014, p. 43

44. 83% Believe Their IT Strategy Is Important to the
Delivery of Agility within the Company
Supply Chain Insights LLC Copyright © 2014, p. 44

45. Most Common Effort to Improve Agility via IT:
Electronic Data Interchange
Supply Chain Insights LLC Copyright © 2014, p. 45

46. Top Effort to Improve Agility Is Same for
Process and Non-Process Industries
Supply Chain Insights LLC Copyright © 2014, p. 46