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GLOBAL RETAIL AND<br />

CONSUMER PRODUCTS<br />

<strong>Ernst</strong> & Young’s<br />

<strong>Risk</strong> <strong>in</strong> <strong>the</strong> <strong>Supply</strong> Cha<strong>in</strong> <strong>Survey</strong><br />

Retail Sector F<strong>in</strong>al Report<br />

November 2003


Participant Profiles<br />

E&Y.5. How many employees are <strong>in</strong><br />

your entire organization<br />

35%<br />

E&Y.4. What is your organization's approximate<br />

annual sales revenue<br />

2001<br />

2002<br />

|<br />

|<br />

0.01 0.1 1 10 100<br />

Sales Revenue ($ Billions)<br />

(logarithmic scale)<br />

Solid Diamond represents median value<br />

Number of respondents: 16 (2001), 16 (2002)<br />

|<br />

|<br />

Percent of 17 Respondents<br />

0 10 20 30<br />

12%<br />

6%<br />

18%<br />

18%<br />

12%<br />

0%<br />

100,000<br />

to<br />

100,000<br />

1<br />

0310-0475632


Corporate Governance<br />

Use of Industry Benchmark<strong>in</strong>g Models and Quality Programs<br />

GSCM.5. Did you perform benchmark<strong>in</strong>g<br />

with o<strong>the</strong>r companies <strong>in</strong> 2002<br />

47% 47%<br />

GSCM.3. Do you follow <strong>the</strong> <strong>Supply</strong> Cha<strong>in</strong> Council's<br />

<strong>Supply</strong> Cha<strong>in</strong> Operations Reference (SCOR)<br />

model <strong>in</strong> your supply cha<strong>in</strong> management<br />

71%<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

6%<br />

Percent of 17 Respondents<br />

0 20 40 60<br />

12%<br />

18%<br />

Yes No Don't Know<br />

Yes No Don't Know<br />

2<br />

0310-0475632


Corporate Governance<br />

Use of Industry Benchmark<strong>in</strong>g Models and Quality Programs<br />

PLAN.5. Indicate your op<strong>in</strong>ion on <strong>the</strong> follow<strong>in</strong>g statements<br />

regard<strong>in</strong>g <strong>the</strong> bus<strong>in</strong>ess process <strong>in</strong> your company.<br />

Percent of Respondents<br />

Average<br />

Statements:<br />

N<br />

Strongly<br />

Disagree<br />

Strongly<br />

Agree<br />

DK NA 1 2 3 4 5<br />

Strongly<br />

Disagree<br />

Neutral<br />

Strongly<br />

Agree<br />

1 2 3 4 5<br />

Percentage of all Respondents<br />

Average exclud<strong>in</strong>g DK and NA<br />

We always use Collaborative Plann<strong>in</strong>g Forecast<strong>in</strong>g<br />

and Replenishment (CPFR) practices <strong>in</strong> our plann<strong>in</strong>g process.<br />

17 12 24 35 12 12 6 0<br />

Diamond represents average of all respondents<br />

Sorted by Overall Average<br />

DK = Don't Know, NA = Not Applicable<br />

3<br />

0310-0475632


Corporate Governance<br />

Frequency of Internal Audits with<strong>in</strong> SCM Processes<br />

SOURCE.13. How often do you conduct your <strong>in</strong>ternal audit<br />

35%<br />

Percent of 17 Respondents<br />

0 10 20 30<br />

6%<br />

18%<br />

0%<br />

12%<br />

29%<br />

Weekly or<br />

more often<br />

Monthly Quarterly Semiannually<br />

Annually or<br />

less often<br />

O<strong>the</strong>r<br />

4<br />

0310-0475632


Order Book<br />

Corporate Governance<br />

Frequency of Internal Audits with<strong>in</strong> SCM Processes<br />

SELL.8. How often do you audit <strong>the</strong> follow<strong>in</strong>g<br />

Pric<strong>in</strong>g Table<br />

Pric<strong>in</strong>g File<br />

Customer Master<br />

File<br />

O<strong>the</strong>r<br />

20%<br />

0%<br />

0%<br />

9%<br />

Never<br />

0%<br />

0%<br />

0%<br />

9%<br />

Annually or<br />

less often<br />

0%<br />

0%<br />

0%<br />

9%<br />

Quarterly<br />

20%<br />

29%<br />

21%<br />

18%<br />

Monthly<br />

10%<br />

36%<br />

29%<br />

18%<br />

Weekly or<br />

more often<br />

50%<br />

36%<br />

50%<br />

36%<br />

0 10 20 30 40 50<br />

Percent of 10 Respondents<br />

0 10 20 30 40 50<br />

Percent of 14 Respondents<br />

0 10 20 30 40 50<br />

Percent of 14 Respondents<br />

0 10 20 30 40 50<br />

Percent of 11 Respondents<br />

5<br />

0310-0475632


Corporate Governance<br />

Effectiveness of Internal Controls <strong>in</strong> SCM Processes<br />

Indicate your op<strong>in</strong>ion on <strong>the</strong> follow<strong>in</strong>g statements<br />

regard<strong>in</strong>g <strong>the</strong> bus<strong>in</strong>ess process <strong>in</strong> your company.<br />

Statements:<br />

PLAN.5<br />

N<br />

Percent of Respondents<br />

DK NA<br />

Strongly<br />

Disagree<br />

1 2 3<br />

Strongly<br />

Agree<br />

4 5<br />

Percentage of all Respondents<br />

We effectively manage <strong>the</strong> returned goods repair process. 17 0 53 0 12 6 12 18<br />

Average<br />

Strongly Neutral Strongly<br />

Disagree<br />

1 2 3 4<br />

Agree<br />

5<br />

Average exclud<strong>in</strong>g DK and NA<br />

We have good metrics <strong>in</strong> place to measure <strong>the</strong><br />

effectiveness of our production plann<strong>in</strong>g process.<br />

We are satisfied with <strong>the</strong> controls over <strong>the</strong> plann<strong>in</strong>g process.<br />

SELL.7<br />

17<br />

16<br />

0 12 0 6 18 47 18<br />

0 6 0 19 25 50 0<br />

The exist<strong>in</strong>g control over grant<strong>in</strong>g credit is effective.<br />

17<br />

6 59 0 0 0 12 24<br />

We have adequate controls <strong>in</strong> place over discount<strong>in</strong>g<br />

customer orders.<br />

17<br />

RETURNS.5<br />

0 18 6 0 6 41 29<br />

We effectively manage <strong>the</strong> returned goods repair process. 17 0 53 0 12 6 12 18<br />

6<br />

Diamond represents average of all respondents<br />

Sorted by Overall Average<br />

DK = Don't Know, NA = Not Applicable<br />

0310-0475632


Collaborative Relationships<br />

Number of Collaborative Relationships <strong>in</strong> SCM Processes<br />

GSCM.4. How many collaborative relationships did you have for <strong>the</strong> follow<strong>in</strong>g process areas <strong>in</strong> 2002<br />

Plan<br />

Source<br />

Make<br />

More than 5<br />

47%<br />

53%<br />

46%<br />

2 to 5<br />

0%<br />

6%<br />

15%<br />

1<br />

6%<br />

6%<br />

0%<br />

0<br />

29%<br />

24%<br />

8%<br />

Don't Know<br />

18%<br />

12%<br />

31%<br />

0 10 20 30 40 50<br />

Percent of 17 Respondents<br />

0 10 20 30 40 50<br />

Percent of 17 Respondents<br />

0 10 20 30 40 50<br />

Percent of 13 Respondents<br />

Deliver<br />

Sell<br />

Returns<br />

More than 5<br />

53%<br />

53%<br />

53%<br />

2 to 5<br />

24%<br />

6%<br />

12%<br />

1<br />

6%<br />

0%<br />

0%<br />

0<br />

12%<br />

29%<br />

18%<br />

Don't Know<br />

6%<br />

12%<br />

18%<br />

0 10 20 30 40 50<br />

Percent of 17 Respondents<br />

0 10 20 30 40 50<br />

Percent of 17 Respondents<br />

0 10 20 30 40 50<br />

Percent of 17 Respondents<br />

7<br />

0310-0475632


Collaborative Relationships<br />

Number of Collaborative Relationships <strong>in</strong> SCM Processes<br />

GSCM.24. How many collaborative relationships did you have with<strong>in</strong> <strong>the</strong> follow<strong>in</strong>g process areas <strong>in</strong> 2002<br />

Bus<strong>in</strong>ess Cont<strong>in</strong>uity<br />

Customer Call Center<br />

IT Infrastructure<br />

eCommerce Initiatives<br />

More than 5<br />

18%<br />

0%<br />

12%<br />

6%<br />

2 to 5<br />

29%<br />

35%<br />

47%<br />

24%<br />

1<br />

18%<br />

6%<br />

6%<br />

6%<br />

Don't know<br />

18%<br />

18%<br />

24%<br />

24%<br />

Not applicable<br />

18%<br />

41%<br />

12%<br />

41%<br />

0 10 20 30 40<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

Percent of 17 Respondents<br />

Network/Systems Monitor<strong>in</strong>g<br />

Network Management<br />

Remote/Virtual Network<strong>in</strong>g<br />

Web Host<strong>in</strong>g/ISP<br />

More than 5<br />

6%<br />

6%<br />

6%<br />

0%<br />

2 to 5<br />

35%<br />

35%<br />

29%<br />

12%<br />

1<br />

12%<br />

12%<br />

12%<br />

24%<br />

Don't know<br />

24%<br />

24%<br />

24%<br />

29%<br />

Not applicable<br />

24%<br />

24%<br />

29%<br />

35%<br />

0 10 20 30 40<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

Percent of 17 Respondents<br />

8<br />

0310-0475632


Collaborative Relationships<br />

Management of Collaborat<strong>in</strong>g Partners<br />

GSCM.8. Indicate your op<strong>in</strong>ion on <strong>the</strong> follow<strong>in</strong>g statements<br />

regard<strong>in</strong>g <strong>the</strong> collaborative relationships <strong>in</strong> your company.<br />

Percent of Respondents<br />

Average<br />

Statements:<br />

N<br />

Strongly<br />

Disagree<br />

Strongly<br />

Agree<br />

DK NA 1 2 3 4 5<br />

Strongly<br />

Disagree<br />

Neutral<br />

Strongly<br />

Agree<br />

1 2 3 4 5<br />

Percentage of all Respondents<br />

Average exclud<strong>in</strong>g DK and NA<br />

The supply cha<strong>in</strong> data we share with external companies or<br />

collaborative partners are accurate.<br />

16<br />

0 6 0 0 19 31 44<br />

We share substantial amounts of data with external<br />

companies or collaborative partners.<br />

17<br />

0 0 6 24 6 24 41<br />

The service agreements def<strong>in</strong>ed are monitored <strong>in</strong> <strong>the</strong>ir<br />

enforcement.<br />

17<br />

0 12 6 24 18 12 29<br />

We have comprehensive service agreements def<strong>in</strong>ed for our<br />

critical collaborative partners.<br />

17<br />

0 18 6 24 24 12 18<br />

We have a formal process <strong>in</strong> place to evaluate collaborative<br />

partners.<br />

17<br />

0 18 24 18 6 18 18<br />

Diamond represents average of all respondents<br />

Sorted by Overall Average<br />

DK = Don't Know, NA = Not Applicable<br />

9<br />

0310-0475632


Collaborative Relationships<br />

Management of Vendors/Suppliers<br />

2001<br />

2002<br />

SOURCE.1. What was your total number of<br />

suppliers from <strong>the</strong> accounts payable register<br />

|<br />

|<br />

0 2000 4000 6000<br />

Number of Suppliers<br />

Solid Diamond represents median value<br />

Number of respondents: 13 (2001), 14 (2002)<br />

Number of companies not measur<strong>in</strong>g: 4 (2001), 3 (2002)<br />

|<br />

|<br />

SOURCE.9. Do you have a sourc<strong>in</strong>g program <strong>in</strong> place<br />

aimed at reduc<strong>in</strong>g <strong>the</strong> number of vendors you work with<br />

53%<br />

47%<br />

Percent of 17 Respondents<br />

0 10 20 30 40 50<br />

0%<br />

Yes No Don't Know/<br />

Not applicable<br />

SOURCE.8. Percentage of Sourc<strong>in</strong>g Arrangements<br />

Multiple sourc<strong>in</strong>g<br />

|<br />

|<br />

S<strong>in</strong>gle sourc<strong>in</strong>g<br />

|<br />

|<br />

Sole sourc<strong>in</strong>g<br />

|<br />

|<br />

Solid Diamond represents median value<br />

Number of respondents: 18 (Sole), 20 (S<strong>in</strong>gle), 19 (Multiple)<br />

10<br />

0 20 40 60 80 100<br />

Percent<br />

0310-0475632


Collaborative Relationships<br />

Management of Vendors/Suppliers<br />

SOURCE.11. Do you formally evaluate vendor performance by monitor<strong>in</strong>g <strong>the</strong> follow<strong>in</strong>g<br />

Cost<br />

Quality<br />

Delivery<br />

Not Applicable<br />

0%<br />

0%<br />

0%<br />

Don't Know<br />

0%<br />

0%<br />

0%<br />

No<br />

18%<br />

18%<br />

18%<br />

Yes<br />

82%<br />

82%<br />

82%<br />

0 20 40 60 80<br />

Percent of 17 Respondents<br />

0 20 40 60 80<br />

Percent of 17 Respondents<br />

0 20 40 60 80<br />

Percent of 17 Respondents<br />

11<br />

0310-0475632


Corporate Governance<br />

Management of Vendors/Suppliers<br />

SOURCE.10. Do you have a documented<br />

competitive bidd<strong>in</strong>g process <strong>in</strong> place<br />

47% 47%<br />

SOURCE.14. Do you review supplier performance<br />

based on Supplied <strong>in</strong> Full and On Time (SIFOT)<br />

65%<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

6%<br />

Percent of 17 Respondents<br />

0 10 20 30 40 50 60<br />

35%<br />

0%<br />

Yes No Don't Know/<br />

Not applicable<br />

Yes No Don't Know/<br />

Not applicable<br />

12<br />

0310-0475632


Corporate Governance<br />

Management of Vendors/Suppliers<br />

SOURCE.12. How often do you evaluate large vendors for <strong>the</strong> accuracy and payment tim<strong>in</strong>g, respectively<br />

Accuracy<br />

Payment Tim<strong>in</strong>g<br />

Always<br />

12%<br />

9%<br />

Often<br />

24%<br />

27%<br />

Sometimes<br />

29%<br />

18%<br />

Rarely<br />

35%<br />

36%<br />

Never<br />

0%<br />

0%<br />

Don't Know<br />

Not Applicable<br />

0%<br />

9%<br />

13<br />

0 10 20 30<br />

Percent of 17 Respondents<br />

0 10 20 30<br />

Percent of 11 Respondents<br />

0310-0475632


Collaborative Relationships<br />

Management of Vendors/Suppliers<br />

SOURCE.3. What percentage of suppliers<br />

were approved or certified<br />

SOURCE.2. What percentage of defects is<br />

attributed to poor supplier quality<br />

2001<br />

|<br />

|<br />

2001<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

0 20 40 60 80 100<br />

Percentage of Suppliers (%)<br />

Solid Diamond represents median value<br />

Number of respondents: 5 (2001), 6 (2002)<br />

Number of companies not measur<strong>in</strong>g: 10 (2001), 9 (2002)<br />

0 20 40 60 80 100<br />

Percentage of Defects (%)<br />

Solid Diamond represents median value<br />

Number of respondents: 10 (2001), 10 (2002)<br />

Number of companies not measur<strong>in</strong>g: 7 (2001), 7 (2002)<br />

14<br />

0310-0475632


Bus<strong>in</strong>ess Cont<strong>in</strong>uity Plann<strong>in</strong>g<br />

Disaster and Bus<strong>in</strong>ess Interruption Read<strong>in</strong>ess<br />

GSCM.10. How would you rate <strong>the</strong> ability of your organization to cont<strong>in</strong>ue<br />

bus<strong>in</strong>ess operations <strong>in</strong> <strong>the</strong> event of a disaster or bus<strong>in</strong>ess <strong>in</strong>terruption<br />

Ability to recover<br />

supply cha<strong>in</strong> operations<br />

Prepare backup suppliers <strong>in</strong> <strong>the</strong><br />

event that a supplier is unable<br />

to cont<strong>in</strong>ue bus<strong>in</strong>ess operations<br />

Backup protection of<br />

your critical supply cha<strong>in</strong> data<br />

World Class<br />

6%<br />

6%<br />

18%<br />

Adequate<br />

76%<br />

59%<br />

76%<br />

Marg<strong>in</strong>al<br />

12%<br />

6%<br />

6%<br />

Inadequate<br />

6%<br />

6%<br />

0%<br />

Not capable at all<br />

0%<br />

0%<br />

0%<br />

Not Applicable<br />

0%<br />

24%<br />

0%<br />

0 20 40 60<br />

0 20 40 60<br />

0 20 40 60<br />

Percent of 17 Respondents<br />

Percent of 17 Respondents<br />

Percent of 17 Respondents<br />

15<br />

0310-0475632


Bus<strong>in</strong>ess Cont<strong>in</strong>uity Plann<strong>in</strong>g<br />

Disaster and Bus<strong>in</strong>ess Interruption Read<strong>in</strong>ess<br />

GSCM.11. Have you identified third parties to assist with critical<br />

supply cha<strong>in</strong> operations <strong>in</strong> <strong>the</strong> event of a disaster or bus<strong>in</strong>ess <strong>in</strong>terruption<br />

Percent of 17 Respondents<br />

0 10 20 30 40 50 60<br />

59%<br />

41%<br />

0%<br />

Yes No Don't Know<br />

16<br />

0310-0475632


Bus<strong>in</strong>ess Cont<strong>in</strong>uity Plann<strong>in</strong>g<br />

Disaster and Bus<strong>in</strong>ess Interruption Read<strong>in</strong>ess<br />

GSCM.13. When did you last conduct a test of <strong>the</strong> recovery preparedness of your supply cha<strong>in</strong> operations<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

41%<br />

12% 12%<br />

6%<br />

0-3<br />

4-12<br />

13-24<br />

Over 24<br />

months<br />

months<br />

months<br />

months<br />

ago ago ago ago<br />

GSCM.14. When did you last conduct a test of <strong>the</strong> recovery preparedness of your supply cha<strong>in</strong> technologies<br />

Percent of 17 Respondents<br />

0 10 20 30<br />

35%<br />

0-3<br />

months<br />

ago<br />

29%<br />

4-12<br />

months<br />

ago<br />

0%<br />

13-24<br />

months<br />

ago<br />

6%<br />

Over 24<br />

months<br />

ago<br />

29%<br />

O<strong>the</strong>r<br />

29%<br />

O<strong>the</strong>r<br />

17<br />

0310-0475632


Bus<strong>in</strong>ess Cont<strong>in</strong>uity Plann<strong>in</strong>g<br />

Disaster and Bus<strong>in</strong>ess Interruption Experiences<br />

GSCM.12. In 2002, have <strong>the</strong> follow<strong>in</strong>g supply cha<strong>in</strong> activities experienced<br />

any unscheduled or unplanned disruptions<br />

Plan<br />

Source<br />

Make<br />

Yes<br />

25%<br />

18%<br />

25%<br />

No<br />

69%<br />

71%<br />

67%<br />

Don't Know<br />

6%<br />

12%<br />

8%<br />

0 20 40 60 80<br />

0 20 40 60 80<br />

0 20 40 60 80<br />

Percent of 16 Respondents<br />

Percent of 17 Respondents<br />

Percent of 12 Respondents<br />

Deliver<br />

Sell<br />

Returns<br />

Yes<br />

38%<br />

31%<br />

12%<br />

No<br />

56%<br />

62%<br />

81%<br />

Don't Know<br />

6%<br />

6%<br />

6%<br />

0 20 40 60 80<br />

0 20 40 60 80<br />

0 20 40 60 80<br />

Percent of 16 Respondents<br />

Percent of 16 Respondents<br />

Percent of 16 Respondents<br />

18<br />

0310-0475632


Bus<strong>in</strong>ess Cont<strong>in</strong>uity Plann<strong>in</strong>g<br />

Disaster and Bus<strong>in</strong>ess Interruption Experiences<br />

GSCM.12. If any of <strong>the</strong> follow<strong>in</strong>g supply cha<strong>in</strong> activities experienced any unscheduled<br />

or unplanned disruptions, was it due to technology problems<br />

Plan<br />

Source<br />

Make<br />

Yes<br />

20%<br />

7%<br />

7%<br />

No<br />

80%<br />

80%<br />

71%<br />

Don't Know<br />

0%<br />

13%<br />

21%<br />

0 20 40 60 80<br />

0 20 40 60 80<br />

0 20 40 60 80<br />

Percent of 15 Respondents<br />

Percent of 15 Respondents<br />

Percent of 14 Respondents<br />

Deliver<br />

Sell<br />

Returns<br />

Yes<br />

12%<br />

12%<br />

7%<br />

No<br />

76%<br />

88%<br />

80%<br />

Don't Know<br />

12%<br />

0%<br />

13%<br />

0 20 40 60 80<br />

0 20 40 60 80<br />

0 20 40 60 80<br />

Percent of 17 Respondents<br />

Percent of 16 Respondents<br />

Percent of 15 Respondents<br />

19<br />

0310-0475632


Bus<strong>in</strong>ess Cont<strong>in</strong>uity Plann<strong>in</strong>g<br />

Disaster and Bus<strong>in</strong>ess Interruption Experiences<br />

GSCM.9. What is <strong>the</strong> most critical process <strong>in</strong> your supply cha<strong>in</strong> management<br />

activities <strong>in</strong> <strong>the</strong> event of a disaster or bus<strong>in</strong>ess <strong>in</strong>terruption<br />

Sorted by Overall Frequency<br />

Deliver<br />

Sell<br />

O<strong>the</strong>r<br />

Plan<br />

Source<br />

Returns<br />

Make<br />

0%<br />

0%<br />

6%<br />

12%<br />

18%<br />

24%<br />

41%<br />

0 10 20 30 40<br />

Percent of 17 Respondents<br />

20<br />

0310-0475632


SCM Application Security<br />

Current Level of Security and Activities<br />

GSCM.22. Please rate <strong>the</strong> current level of security over <strong>the</strong> follow<strong>in</strong>g supply cha<strong>in</strong> management activities.<br />

World class<br />

6%<br />

Plan<br />

0%<br />

Source<br />

0%<br />

Make<br />

Adequate<br />

76%<br />

88%<br />

64%<br />

Marg<strong>in</strong>al<br />

12%<br />

6%<br />

9%<br />

Inadequate<br />

0%<br />

0%<br />

0%<br />

Not capable at all<br />

0%<br />

6%<br />

9%<br />

Don't know<br />

6%<br />

0%<br />

18%<br />

0 20 40 60 80<br />

Percent of 17 Respondents<br />

0 20 40 60 80<br />

Percent of 17 Respondents<br />

0 20 40 60 80<br />

Percent of 11 Respondents<br />

World class<br />

6%<br />

Deliver<br />

6%<br />

Sell<br />

0%<br />

Returns<br />

Adequate<br />

94%<br />

94%<br />

88%<br />

Marg<strong>in</strong>al<br />

0%<br />

0%<br />

6%<br />

Inadequate<br />

0%<br />

0%<br />

0%<br />

Not capable at all<br />

0%<br />

0%<br />

6%<br />

Don't know<br />

0%<br />

0%<br />

0%<br />

0 20 40 60 80<br />

Percent of 17 Respondents<br />

0 20 40 60 80<br />

Percent of 17 Respondents<br />

0 20 40 60 80<br />

Percent of 17 Respondents<br />

21<br />

0310-0475632


SCM Application Security<br />

Activities Currently or Plann<strong>in</strong>g to be Conducted Electronically<br />

GSCM.20. What supply cha<strong>in</strong> management activities do you currently<br />

conduct electronically, or plan to with<strong>in</strong> <strong>the</strong> next 12 months<br />

Plan<br />

Source<br />

Make<br />

Yes<br />

76%<br />

100%<br />

70%<br />

No<br />

24%<br />

0%<br />

30%<br />

0 20 40 60 80 100<br />

0 20 40 60 80 100<br />

0 20 40 60 80 100<br />

Percent of 17 Respondents<br />

Percent of 17 Respondents<br />

Percent of 10 Respondents<br />

Deliver<br />

Sell<br />

Returns<br />

Yes<br />

88%<br />

94%<br />

76%<br />

No<br />

12%<br />

6%<br />

24%<br />

0 20 40 60 80 100<br />

0 20 40 60 80 100<br />

0 20 40 60 80 100<br />

Percent of 17 Respondents<br />

Percent of 17 Respondents<br />

Percent of 17 Respondents<br />

22<br />

0310-0475632


SCM Application Security<br />

Security Requirements <strong>in</strong> <strong>Supply</strong> Cha<strong>in</strong> Operations<br />

GSCM.19. Compared to o<strong>the</strong>r areas of <strong>the</strong> bus<strong>in</strong>ess (o<strong>the</strong>r than supply cha<strong>in</strong> management),<br />

what level of security is required with<strong>in</strong> <strong>the</strong> supply cha<strong>in</strong> <strong>in</strong> general<br />

47%<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

18%<br />

35%<br />

0% 0% 0%<br />

Much<br />

higher<br />

Higher Same Lower Much<br />

lower<br />

O<strong>the</strong>r<br />

23<br />

0310-0475632


SCM Application Security<br />

Security Requirements <strong>in</strong> <strong>Supply</strong> Cha<strong>in</strong> Operations<br />

GSCM.21. How much does your company rely<br />

on <strong>the</strong> follow<strong>in</strong>g areas to ensure <strong>the</strong> security<br />

of your supply cha<strong>in</strong> management activities<br />

Percent of Respondents<br />

Average<br />

Areas<br />

N<br />

Very<br />

Low<br />

Very<br />

High<br />

DK 1 2 3 4 5<br />

Very<br />

Low<br />

Marg<strong>in</strong>al Very<br />

High<br />

1 2 3 4 5<br />

Percentage of all Respondents<br />

Average exclud<strong>in</strong>g DK and NA<br />

Firewalls and routers<br />

Capabilities of your operat<strong>in</strong>g systems software<br />

Anti-virus software<br />

Physical controls protect<strong>in</strong>g your supply cha<strong>in</strong> hardware devices<br />

Intrusion detection/<strong>in</strong>cident response system<br />

Capabilities of your supply cha<strong>in</strong> software applications<br />

Data encryption<br />

17<br />

17<br />

17<br />

17<br />

17<br />

17<br />

17<br />

6 0 0 6 24 65<br />

6 0 0 6 35 53<br />

0 0 0 12 35 53<br />

6 6 12 6 29 41<br />

24 0 6 24 24 24<br />

6 24 0 12 18 41<br />

18 6 18 12 24 24<br />

GSCM.23. Please rate <strong>the</strong> degree of importance each trust area<br />

below has on your supply cha<strong>in</strong> management activities. Percent of Respondents Average<br />

Trust Area<br />

N<br />

Very<br />

unimportant<br />

Very<br />

important<br />

DK 1 2 3 4 5<br />

Very<br />

unimportant<br />

Marg<strong>in</strong>al Very<br />

important<br />

1 2 3 4 5<br />

Percentage of all Respondents<br />

Average exclud<strong>in</strong>g DK and NA<br />

Information Security<br />

17<br />

0 0 0 0 24 76<br />

Systems Availability<br />

17<br />

6 0 0 0 24 71<br />

Confidentiality<br />

17<br />

0 0 0 6 35 59<br />

Information Privacy<br />

17<br />

0 0 0 12 41 47<br />

Performance Measurement<br />

17<br />

6 0 0 12 53 29<br />

Contractual Obligations<br />

17<br />

6 6 0 6 59 24<br />

Diamond represents average of all respondents<br />

Sorted by Overall Average<br />

DK = Don't Know, NA = Not Applicable<br />

24<br />

0310-0475632


Data Integrity<br />

<strong>Supply</strong> Cha<strong>in</strong> Software and Error Free Orders<br />

GSCM.17. What k<strong>in</strong>d of software did you use to manage <strong>the</strong> supply cha<strong>in</strong> <strong>in</strong> 2002<br />

Sorted by Overall Frequency<br />

O<strong>the</strong>r<br />

53%<br />

Transactional software<br />

35%<br />

<strong>Supply</strong> cha<strong>in</strong> management<br />

specialized software<br />

12%<br />

0 10 20 30 40 50<br />

Percent of 17 Respondents<br />

SOURCE.5. What percentage of your annual<br />

total orders was error free<br />

2001<br />

2002<br />

|<br />

|<br />

|<br />

|<br />

0 20 40 60 80 100<br />

Percent (%)<br />

Solid Diamond represents median value<br />

Number of respondents: 11 (2001), 12 (2002)<br />

Number of companies not measur<strong>in</strong>g: 6 (2001), 5 (2002)<br />

25<br />

0310-0475632


Data Integrity<br />

Ability to Accurately Return Stock to Inventory<br />

and Ability to Respond to Customer Inquiries<br />

Indicate your op<strong>in</strong>ion on <strong>the</strong> follow<strong>in</strong>g statements<br />

regard<strong>in</strong>g <strong>the</strong> bus<strong>in</strong>ess process <strong>in</strong> your company.<br />

Percent of Respondents<br />

Average<br />

Statements:<br />

N<br />

Strongly<br />

Disagree<br />

Strongly<br />

Agree<br />

DK NA 1 2 3 4 5<br />

Strongly<br />

Disagree<br />

Neutral<br />

Strongly<br />

Agree<br />

1 2 3 4 5<br />

Percentage of all Respondents<br />

Average exclud<strong>in</strong>g DK and NA<br />

We are able to accurately return stock to our <strong>in</strong>ventory. RETURNS.5 17 0 18 6 6 6 12 53<br />

We are able to accurately return stock to our <strong>in</strong>ventory. 17 0 18 6 6 6 12 53<br />

SELL.7<br />

We are able to immediately respond to a customer's request<br />

regard<strong>in</strong>g <strong>the</strong> status of an order (or product).<br />

17 0 35 0 12 6 18 29<br />

Diamond represents average of all respondents<br />

Sorted by Overall Average<br />

DK = Don't Know, NA = Not Applicable<br />

26<br />

0310-0475632


SCM Expenditures and Investments<br />

Evaluat<strong>in</strong>g Return on Investment for SCM Expenditures and SCM Costs<br />

Percent of<br />

17 Respondents<br />

0 20 40<br />

47%<br />

GSCM.15. How often do you calculate return on <strong>in</strong>vestment for<br />

supply cha<strong>in</strong> management capital expenditures<br />

24%<br />

12%<br />

0% 0%<br />

18%<br />

Always Often Sometimes Rarely Never<br />

Don't<br />

know/Not<br />

applicable<br />

Percent of<br />

17 Respondents<br />

0 40<br />

GSCM.16. Do you usually evaluate <strong>the</strong> return on <strong>in</strong>vestment at <strong>the</strong> conclusion<br />

76%<br />

of fully implement<strong>in</strong>g a large capital expenditure<br />

18%<br />

6%<br />

Yes<br />

RETURNS.2. What was your total cost to<br />

process returns and warranties<br />

No<br />

Don't<br />

Know/Not<br />

applicable<br />

Too Few Respondents<br />

Number of respondents: 4 (2001), 4 (2002)<br />

Number of companies not measur<strong>in</strong>g: 6 (2001), 5 (2002)<br />

27<br />

0310-0475632


Workforce<br />

Number of Professionals <strong>in</strong> SCM Operations<br />

SOURCE.6. How many professionals were<br />

<strong>in</strong>volved <strong>in</strong> <strong>the</strong> supply cha<strong>in</strong> source function<br />

PLAN.3. How many professionals were<br />

<strong>in</strong>volved <strong>in</strong> <strong>the</strong> demand function<br />

2001<br />

|<br />

|<br />

2001<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

1 10 100 1000 10000<br />

Number of Professionals<br />

(logarithmic scale)<br />

Solid Diamond represents median value<br />

Number of respondents: 14 (2001), 15 (2002)<br />

Number of companies not measur<strong>in</strong>g: 2 (2001), 1 (2002)<br />

1 10 100 1000 10000<br />

Number of Professionals<br />

(logarithmic scale)<br />

Solid Diamond represents median value<br />

Number of respondents: 11 (2001), 12 (2002)<br />

Number of companies not measur<strong>in</strong>g: 4 (2001), 4 (2002)<br />

GSCM.2. How many supply cha<strong>in</strong> manager positions did you have<br />

that had overall control of <strong>the</strong> <strong>Supply</strong> Cha<strong>in</strong> process <strong>in</strong> 2002<br />

2002<br />

|<br />

|<br />

28<br />

0 10 100<br />

<strong>Supply</strong> Cha<strong>in</strong> Manager Positions<br />

(logarithmic scale)<br />

Solid Diamond represents median value<br />

Number of respondents: 17<br />

0310-0475632


Workforce<br />

Number of Professionals <strong>in</strong> SCM Operations<br />

SELL.4. What was <strong>the</strong> average regional<br />

manager's span of control<br />

SELL.5. What was <strong>the</strong> average district<br />

manager's span of control<br />

2001<br />

|<br />

|<br />

2001<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

0 2000 4000 6000<br />

District Managers<br />

Solid Diamond represents median value<br />

Number of respondents: 6 (2001), 7 (2002)<br />

Number of companies not measur<strong>in</strong>g: 8 (2001), 7 (2002)<br />

SELL.6. What was <strong>the</strong> average store<br />

manager's span of control<br />

0 200 400 600 800<br />

Store Managers<br />

Solid Diamond represents median value<br />

Number of respondents: 5 (2001), 5 (2002)<br />

Number of companies not measur<strong>in</strong>g: 8 (2001), 8 (2002)<br />

2001<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

0 20 40 60<br />

Supervisors<br />

Solid Diamond represents median value<br />

Number of respondents: 7 (2001), 7 (2002)<br />

Number of companies not measur<strong>in</strong>g: 8 (2001), 8 (2002)<br />

29<br />

0310-0475632


Workforce<br />

Adequacy of Tra<strong>in</strong><strong>in</strong>g and Opportunity to Contribute to Improvement<br />

GSCM.18. Do you th<strong>in</strong>k that your employees are adequately<br />

tra<strong>in</strong>ed <strong>in</strong> <strong>the</strong> IT tools <strong>the</strong>y are provided<br />

76%<br />

Percent of 17 Respondents<br />

0 20 40 60<br />

18%<br />

6%<br />

Yes No Don't Know/<br />

Not applicable<br />

30<br />

0310-0475632


Tax <strong>Risk</strong>s<br />

Tax Impact and International Exchange Declarations<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

Percent of 17 Respondents<br />

0 20 40 60<br />

GSCM.6. Did you consider <strong>the</strong> tax impact when manag<strong>in</strong>g your supply cha<strong>in</strong> <strong>in</strong> 2002<br />

47% 47%<br />

6%<br />

Yes No Don't Know<br />

GSCM.7. Have you had any issue with <strong>in</strong>ternational exchange declarations <strong>in</strong> 2002<br />

65%<br />

24%<br />

6% 6%<br />

Yes No Don't Know Not Applicable<br />

31<br />

0310-0475632


Benchmarks<br />

SCM Cycle Time<br />

GSCM.1. Overall, how long was your<br />

supply cha<strong>in</strong> cycle<br />

PLAN.2. How long was your forecast<strong>in</strong>g<br />

cycle time<br />

2001<br />

|<br />

|<br />

2001<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

0 50 100 150 200 250<br />

<strong>Supply</strong> Cha<strong>in</strong> Cycle (days)<br />

Solid Diamond represents median value<br />

Number of respondents: 12 (2001), 12 (2002)<br />

Number of companies not measur<strong>in</strong>g: 4 (2001), 4 (2002)<br />

0 50 100 150<br />

Forecast<strong>in</strong>g Cycle Time (days)<br />

Solid Diamond represents median value<br />

Number of respondents: 9 (2001), 10 (2002)<br />

Number of companies not measur<strong>in</strong>g: 6 (2001), 5 (2002)<br />

SOURCE.7. What was your cycle time from receipt of<br />

goods to <strong>the</strong> sell<strong>in</strong>g floor<br />

2001<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

32<br />

0 20 40 60 80<br />

Cycle Time (hours)<br />

Solid Diamond represents median value<br />

Number of respondents: 14 (2001), 14 (2002)<br />

Number of companies not measur<strong>in</strong>g: 3 (2001), 3 (2002)<br />

0310-0475632


Benchmarks<br />

Store Sales Information<br />

SELL.1. What were your net owned sales for<br />

each total store labor hour<br />

SELL.2. What were your sales per square<br />

foot of sell<strong>in</strong>g space<br />

2001<br />

|<br />

|<br />

2001<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

0 100 200 300 400<br />

Net Owned Sales ($)<br />

Solid Diamond represents median value<br />

Number of respondents: 7 (2001), 7 (2002)<br />

Number of companies not measur<strong>in</strong>g: 7 (2001), 7 (2002)<br />

0 10 20 30 40<br />

Sales per Square Foot ($ Thousands)<br />

Solid Diamond represents median value<br />

Number of respondents: 12 (2001), 12 (2002)<br />

Number of companies not measur<strong>in</strong>g: 3 (2001), 3 (2002)<br />

SELL.3. What was <strong>the</strong> average dollar<br />

value per customer transaction<br />

2001<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

33<br />

0 20 40 60 80 100<br />

Dollar Value per Customer Transaction ($)<br />

Solid Diamond represents median value<br />

Number of respondents: 11 (2001), 11 (2002)<br />

Number of companies not measur<strong>in</strong>g: 4 (2001), 4 (2002)<br />

0310-0475632


Benchmarks<br />

Forecast Accuracy and Inventory Turnover Rate<br />

PLAN.1. Approximately, what was <strong>the</strong><br />

forecast accuracy rate<br />

PLAN.4. What was your f<strong>in</strong>ished goods<br />

<strong>in</strong>ventory turnover rate<br />

2001<br />

|<br />

|<br />

2001<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

2002<br />

|<br />

|<br />

0 20 40 60 80 100<br />

Forecast accuracy rate (%)<br />

Solid Diamond represents median value<br />

Number of respondents: 12 (2001), 13 (2002)<br />

Number of companies not measur<strong>in</strong>g: 5 (2001), 4 (2002)<br />

0 20 40 60 80 100<br />

Turnover rate (%)<br />

Solid Diamond represents median value<br />

Number of respondents: 9 (2001), 11 (2002)<br />

Number of companies not measur<strong>in</strong>g: 7 (2001), 5 (2002)<br />

34<br />

0310-0475632


Benchmarks<br />

Percent of Orders Returned and Trends<br />

RETURNS.6. What trends have you been experienc<strong>in</strong>g with respect<br />

to customer returns s<strong>in</strong>ce <strong>the</strong> beg<strong>in</strong>n<strong>in</strong>g of 2002<br />

47%<br />

Percent of 17 Respondents<br />

0 10 20 30 40<br />

12% 12%<br />

29%<br />

Increas<strong>in</strong>g Decreas<strong>in</strong>g Rema<strong>in</strong><br />

<strong>the</strong> same<br />

Don't know/<br />

Not applicable<br />

35<br />

0310-0475632


Benchmarks<br />

Return Process<strong>in</strong>g<br />

RETURNS.4. What did you use for <strong>the</strong> return process <strong>in</strong> 2002<br />

Sorted by Overall Frequency -- Multiple Responses Allowed<br />

Customer Service<br />

65%<br />

Return of stock<br />

to <strong>in</strong>ventory<br />

Transport<strong>in</strong>g returns<br />

41%<br />

47%<br />

Repair/Warranty work<br />

35%<br />

O<strong>the</strong>r<br />

18%<br />

Release of repaired stock<br />

from <strong>in</strong>ventory<br />

Plann<strong>in</strong>g returns<br />

12%<br />

12%<br />

Transport<strong>in</strong>g repaired stock<br />

to customers<br />

6%<br />

0 10 20 30 40 50 60<br />

Percent of 17 Respondents<br />

36<br />

0310-0475632


ERNST & YOUNG LLP<br />

www.ey.com<br />

© 2003 <strong>Ernst</strong> & Young LLP. — All Rights Reserved. <strong>Ernst</strong> & Young is a registered trademark. Score Retrieval File No. X00259

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