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Inventory Optimization
Study
Preliminary Summary Charts
February – May, 2015

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Agenda
 Study Overview
 Inventory Optimization Software
 Inventory Management
 Team Alignment and Business Pain

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Study Overview

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Most Respondents Are Manufacturers and
Most Work in a Process Industry

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The Most Common Industries Are CPG, Food & Beverage
and Chemical

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Company Revenue Is $6B on Average

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Most Respondents Work in a Supply Chain Role, Work at a
Director/Manager Level, and Are Based in US & Canada

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Agenda
 Study Overview
 Inventory Optimization Software
 Inventory Management
 Team Alignment and Business Pain

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Inventory Optimization Provider Categorization

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Nearly Half Have Advanced Software
for Most Important; SAP Is Most Common Provider

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SAP Is Most Common Provider Overall and
for Advanced Software

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Nearly Half Are Satisfied with Their
Most Important Inventory Software

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Sample Responses for Why Satisfied with
Inventory Optimization Software

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Sample Responses for Why NOT Satisfied with
Inventory Optimization Software

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Nearly Two-Fifths Have Achieved ROI and Over
One-Quarter Can Match “Top-Down” and “Bottom-Up”

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Most Common Way for Those with Advanced Software
to Improve Inventory Is Inventory Optimization Software

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For Those with Advanced Software, Supply Chain Group
Is Most Likely Sponsor and to Have within KPIs

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For Those with Advanced Software, Supply Chain Group
Is Most Likely to Have it within KPIs

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Agenda
 Study Overview
 Inventory Optimization Software
 Inventory Management
 Team Alignment and Business Pain

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Half Consider Company to Be Effective at
Making Inventory Decisions

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Sample Responses for Why Effective
at Making Inventory Decisions

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Sample Responses for Why NOT Effective at
Making Inventory Decisions

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Nearly Half Reduced Inventory in 2014;
Primary Reason Is Greater Attention to Detail on
Inventory Performance

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Cycle Counting Is Most Common Way to Control
Inventory Accuracy

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Important Inventory Goals Needing Attention:
S&OP Maturity, Leadership Understanding, and
Adherence to Inventory Targets

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Maturity of S&OP Is Most Important Inventory Goal,
but Not Performing Well

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Maturity of S&OP Is Most Important Inventory Goal,
but Not Performing Well

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Chief SC Officers and Functional VPs Understand Inventory
Strategies Notably Better Than Do P&L Owners

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Agenda
 Study Overview
 Inventory Optimization Software
 Inventory Management
 Team Alignment and Business Pain

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Sales & Marketing Alignment Is Most Important and
Top Performing

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Greatest Gaps in Alignment:
Operations & IT, Sales & Operations,
and Manufacturing & Procurement

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Increasing Business Pain Expected for Speed of Business,
Risk, Talent, Value Networks, Globalization, and Innovation

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Consistently High Pain Reported for Demand/Supply
Volatility and Cross-Functional Alignment

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Overall Increases in Business Pain Expected Mostly for
Increasing Speed of Business, Risk Management, and Talent

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Since Five Years Ago, Decreases in Business Pain Reported
for Clarity of Business Strategy and Software Usability

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Increases in Business Pain Expected Mostly for Risk
Management, Innovation, and Increasing Speed of Business