Ernst & Young's Risk in the Supply Chain Survey Ernst & Young's ...
Ernst & Young's Risk in the Supply Chain Survey Ernst & Young's ...
Ernst & Young's Risk in the Supply Chain Survey Ernst & Young's ...
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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 />
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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 />
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© 2003 <strong>Ernst</strong> & Young LLP. — All Rights Reserved. <strong>Ernst</strong> & Young is a registered trademark. Score Retrieval File No. X00259