1. SUPPLY CHAIN SURVEY: 2010
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Supply Chain Survey 2010 by Profit Point, Inc. (www.profitpt.com) is licensed under a Creative Commons Attribution 3.0 United States License.

2. SUPPLY CHAIN SURVEY
WHAT TO EXPECT IN 2010
Supply chain professionals from a variety of companies and industries
were polled. Here’s what we learned:
• The global economy remains the leading cause for concern
• Managing capital and inventory is of paramount concern
• Half of all companies do not review their plan as often as needed
• One-third of companies do not have future proof plans

3. SURVEY
DEMOGRAPHICS
Who is represented?
The survey included 67 supply chain professionals
comprised of:
•Director and Manager level decision makers
•North American and multinational organizations 0% 10% 20%
•With More than $1 billion in annual revenue Aerospace and Defense
Automotive
Other
20%
C-Level
13%
•Across a wide spectrum of industries Chemicals
Consumer Goods
VP / SVP
Discrete Manufacturing
11%
Food Services
Manager Director Healthcare
35% 20% High-Tech
6% 17% Mining and Metals
19% 7%
Oil and Gas
Other
33%
Process Manufacturing
North America More than $1B
Multinational Professional Services
28% 50%
41% Retail
C-Level Wholesale / Distribution
VP / SVP
Director
Manager
Other Less than $500M
Multinational
$500M to $1B
North America
More than $1B
Asia
Europe
Other

4. SUPPLY CHAIN STRATEGY
HOW OFTEN IS IT REVIEWED?
Best Practices
Only one-half of all respondents are reviewing 50%
their strategy annually. Leading supply chain
pros are reassessing strategies at least annually
and often more frequently as economic and
business conditions dictate.
25%
Key Components
The right process and technology should
enable you to review the following key
components in a simple, integrated
environment: revenue plan, product mix, supply 0%
chain network and infrastructure design.
Every year
Every other year
Every three years
As business and economic conditions dictate
Other

5. SUPPLY CHAIN STRATEGIES
WHERE IS IT WORKING?
15% 30% 45% 60%
0%
Supply Chain Maturity
While a majority of companies have
integrated their supply chain strategy with
their overall business strategy, most
companies have fallen short of full supply
chain maturity.
Opportunities
Benchmark, identify gaps and establish a
plan to reach full supply chain maturity.
Supply Chain is integrated into our business strategy
SC Strategy is developed/executed at the division/business unit level
SC Strategy is shared/common with supply chain partners
SC Strategy is comprehensive across the entire corporation
In the process of developing a supply chain strategy
Strategy is developed and executed at the department level
No supply chain strategy

6. AREAS THAT
NEED IMPROVEMENT
Planning for Collaboration
Most respondents listed collaboration as a leading problem.
However, many also included planning and execution
difficulties, which tend to lead to ineffective collaboration.
0% 10% 20% 30% 40% 50% 60%
Collaboration with Suppliers and Customers
Internal Collaboration
Planning
Plan Execution
Communications
Project Management
Understanding new technologies
Developing a case for supply chain investment
Customer Service
Relationship between business and technology
Organization
Teamwork
Other

7. SUPPLY CHAIN COST
% OF REVENUE
Risks 11-20% of Revenue
30% of respondents were unable to 5-10% of Revenue
21-30% of Revenue
estimate their supply chain costs.
Less than 5%
Opportunities 30% or more
A mature supply chain should have clear
visibility in to costs on a consistent and
regular basis. They should also have a plan
Don’t know
for continuous improvement and
reduction of costs.
Less than 5% 5-10% of Revenue
11-20% of Revenue 21-30% of Revenue
30% or more Don’t know

8. COST IMPACT
OF SUPPLY CHAIN INITIATIVES
7% 3%
28% 25%
Observation
Almost 40% of companies were able to
reduce their supply chain costs by less
than 5%.
Costs reduced 1 – 5%
Risk 38%
If you haven’t reduced your costs by at
least 5%, you may be trailing your peers.
Costs reduced 1 – 5%
Costs reduced 6 – 10%
Costs reduced 11 – 20%
Costs reduced more than 20%
Failed to meet planned objectives
Don’t know/ Not sure

9. REVENUE IMPACT
OF SUPPLY CHAIN INITIATIVES
13% 10%
8%
Risks
5%
More than 40% of companies have not 20%
assessed the revenue impact of their
supply chain strategy.
Opportunities Don’t know/ Not sure
Understand how customer service, 44%
product mix and asset utilization impact
your revenue.
Revenue up 1 – 5%
Revenue up 6 – 10%
Revenue up 11 – 20%
Revenue up more than 20%
Failed to meet planned objectives or Revenue decreased
Don’t know/ Not sure

10. SUPPLY CHAIN INITIATIVE
SUCCESS FACTORS
Keys to Success
We improve what we measure and track... with committed
leadership and strong project management.
0% 20% 40% 60%
Performance measures aligned to desired outcomes
Active senior executive commitment
Project management clearly established and executed
Realistic business case established to track results
Awareness of need to reduce inventories
Collaboration with supply chain partner(s)
Technology enablers established and operating
Awareness of need to increase customer satisfaction
Trust between workers and senior management
High goals set at onset
If other, please specify

11. GREEN IMPACT
ON THE SUPPLY CHAIN
It’s Time to Be Green 60%
Green awareness is a growing part of
company supply chain strategy.
Opportunities 40%
Understand the sustainability levers within
your supply chain.
80% of your supply chain’s footprint is set 20%
with your infrastructure plan - much of
the remainder is associated with your
transportation.
Definitely Not
Will Not
0% Not Sure
Maybe
Definitely
Next Year 2-4 Years 5+ Years

12. SUPPLY CHAIN RISKS
IN 2010
60%
Risks 0% 20% 40%
More than half of all companies are
concerned with inventory and
transportation costs.
Opportunities
Agility to dynamically balance supply
and demand will allow you to manage
your inventory or capital risks.
High variability in transportation and
fuel costs remain a key opportunity to
cut costs and gain advantage.
Inventory and working capital
Cost of transportation/fuel
Critical trading partner / outsourcing partner vulnerabilities
Global instability
Environmental regulations
Freight movement
Manufacturing costs

13. SUPPLY CHAIN
VULNERABILITY
Top 3 Risks
A weak economy, unpredictable demand and supplier risk
are the top three stated vulnerabilities
60%
40%
20%
0%
Global Economy Predicting Demand Supplier Viability Lack of Resources Consolidation Regulatory Change
Strongly Agree Agree Neutral Disagree Strongly Disagree

14. FUTURE PROOF
SUPPLY CHAIN PLAN COVERS CONTINGENCIES
Risks
57%
One-third of companies do not have a
supply chain plan to cover the range of
possibilities that may occur in the next 10%
couple of years.
3%
3%
Opportunities Uncertain
27%
Make sure your supply chain plan will
perform well in many different future
scenarios. In today’s market, it’s more
important to find a good solution for
many different futures, than it is to find
the best solution for a given scenario. Strongly Agree
Agree
Uncertain
Disagree
Strongly Disagree

15. CONCLUSIONS
NOW WHAT?
Predictability is key to superior supply chain performance. With an
uncertain future, supply chain leaders should consider the following:
• Adopt an improvement process that includes frequent measuring,
assessing and planning
• Develop a robust plan that performs well for all likely future scenarios
• Address risky cost centers such as transportation in advance to
mitigate variability

16. READY TO OPTIMIZE YOUR SUPPLY CHAIN?
Call us at
(866) 347-1130
or visit
ProfitPt.com