European Supply Chain Director Survey 2009
The 2009 Analytiqa European Supply Chain Director Survey presents a strategic perspective of logistics activity, performance and future trends, based on primary information and opinion gathered directly from senior professionals. Businesses today are defined by their supply chains, a source of competitive advantage if managed effectively. With the global economy redefining the dynamics of industry competition, today’s fasterpaced markets demand speed, flexibility and innovation. The report assesses the dynamics of the decision making currently employed by manufacturers and retailers across Europe in driving their supply chain strategy. This unique and privileged perspective, based on insight collected and analysed by Analytiqa from an independent and unbiased standpoint, provides you a critical window into the views and concerns of Supply Chain Directors.
How can this report benefit your business?
This report will assist you to better understand a demanding and challenging client base or simply benchmark your own thoughts, opinions or day-to-day operational experiences. Use the report to assess and compare current operations
Key Drivers - Identify major trends and the dynamics shaping the market
Future Focus - Develop future strategic plans based on customer or peer group insight
Expert opinion - Align your strategy with the current thought leadership of SC Directors in leading organisations
Decision Criteria - Better understand what criteria senior management use to asses supply chain performance
Primary Research - Valuable operational insight and opinion unavailable from any other published source
Scope of this report
As a supplier, customer or logistics service provider, this research will enable the informed identification and targeting of key drivers impacting on the decision making and supply chain strategies of major manufacturers and retailers across Europe. Use the report to:
How can this report benefit your business?
This report will assist you to better understand a demanding and challenging client base or simply benchmark your own thoughts, opinions or day-to-day operational experiences.
- Understand the key drivers for in-house and outsourced logistics decisions
- Identify future investment drivers and trends
- Analyse the evolving role of both 3PLs and 4PLs
- Assess the performance of supply chains within European retailers and manufacturers
Key Drivers - Identify major trends and the dynamics shaping the market
Future Focus - Develop future strategic plans based on customer or peer group insight
Expert opinion - Align your strategy with the current thought leadership of SC Directors in leading organisations
Decision Criteria - Better understand what criteria senior management use to asses supply chain performance
Primary Research - Valuable operational insight and opinion unavailable from any other published source
Scope of this report
As a supplier, customer or logistics service provider, this research will enable the informed identification and targeting of key drivers impacting on the decision making and supply chain strategies of major manufacturers and retailers across Europe. Use the report to:
- Gain insight into the supply chain decision making process
- Understand where budgets are held and who holds influence
- Analyse supply chain activity by geographic scale
- Identify the dynamics of the tender / outsourcing process
- Evaluate the operational performance and strategic contribution of 3PLs
- Collect opinion on key issues such as pan-European capability or the 4PL model
CHAPTER 1 EXECUTIVE SUMMARY
1.1 Supply Chain Structure and Decision-Making
Figure 1.1: 15.4% of retailers and manufacturers do not make supply chain decisions at board level, 2009
1.2 Logistics Operations and Outsourcing Dynamics
Figure 1.2: 3PLs must demonstrate a favourable cost-performance ratio, 2009
1.3 Evaluation of Logistical Competence
Figure 1.3: Supply chain performance has ‘slightly improved’ between 2008 and 2009
1.4 Strategic Supply Chain Development
Figure 1.4: Pan-European logistic providers are becoming more effective, 2009
CHAPTER 2 INTRODUCTION
2.1 Research Objectives
2.2 Report Structure
2.3 Research Methodology and Data Definitions
CHAPTER 3 KEY ASSUMPTIONS AND ACTION POINTS
3.1 Key Assumptions
Supply Chain Structure and Decision Making
Logistics Operations and Outsourcing Dynamics
Evaluation of Logistical Competence
Supply Chain Development
3.2 Key Action Points
Effective Partnership Search and Selection
CHAPTER 4 SUPPLY CHAIN STRUCTURE AND DECISION-MAKING
4.1 Introduction
4.2 Strategic Decision-Making
4.2.1 Decision Making at Board Level
Figure 4.1: Retailers and manufacturers that do not make supply chain decisions at board level, 2009
Table 4.1: Share of logistics decisions taken at board level, 2009
4.2.2 Supply Chain Influence at Board Level
Figure 4.2: Share of companies that no longer include Supply Chain Directors at Board level, 2009
Table 4.2: Supply chain influence at board level, 2009
4.3 Supply Chain Decision Makers
4.3.1 Responsibility within the Supply Chain
Table 4.3: Recognising positions of responsibility within the supply chain, 2009
Figure 4.3: Share of Supply Chain Directors that are primary ‘decision-makers’, 2009
Figure 4.4: Share of Transport Directors that are primarily ‘influencers’, 2009
Figure 4.5: Share of Warehousing Directors that are ‘budget holders’ or ‘decision-makers’, 2009
4.4 Investing in Human Resources
Figure 4.6 Overall supply chain headcount has risen between 2007 and 2009
Table 4.4: Trends in the size of supply chain departments from 2007 - 2009
4.5 Key Findings
CHAPTER 5 LOGISTICS OPERATIONS AND OUTSOURCING DYNAMICS
5.1 Introduction
5.2 Geographical Scope of Outsourcing Decisions
Table 5.1: Supply chain outsourcing activity by geographical scope, 2009
Figure 5.1: Retailers and manufacturers outsourcing supply chain activities nationally, 2009
5.3 Dynamics of Strategic Outsourcing Activity
5.3.1 Transportation
Table 5.2: Outsourcing of transportation operations, 2009
Table 5.3: Trends in outsourced transportation operations, 2004 - 2009
Table 5.4: Anticipated outsourced transportation operations, 2009 - 2014
5.3.3 Reverse Logistics
Table 5.5: Outsourcing of reverse logistics operations, 2009
Table 5.6: Trends in outsourced reverse logistics, 2004 - 2009
Table 5.7: Anticipated outsourced reverse logistics, 2009 - 2014
5.3.4 Warehousing - Inventory Storage
Table 5.8: Outsourcing of warehousing operations, 2009
Figure 5.2: Share of retailers and manufacturers will not change outsourcing levels to 2014
Table 5.9: Trends in outsourced warehousing operations, 2004 - 2009
Table 5.10: Anticipated outsourced warehousing, 2009 - 2014
5.3.5 Order Processing
Table 5.11: Outsourcing of order processing operations, 2009
Table 5.12: Trends in outsourced order processing, 2004 - 2009
Table 5.13: Anticipated outsourced order processing, 2009 - 2014
5.3.6 ‘Added Value’ Services
Figure 5.3: Share of retailers and manufacturers increasing ‘added value’ services to 2014
Table 5.14: Outsourcing of ‘added value’ operations, 2009
Table 5.15: Trends in outsourced ‘added value’ services, 2004 – 2009
Table 5.16: Anticipated outsourced ‘added value’ services, 2009 – 2014
5.3.7 Basic Manufacturing
Table 5.17: Outsourcing of basic manufacturing operations, 2009
Table 5.18: Trends in outsourced manufacturing, 2004 - 2009
Table 5.19: Anticipated outsourced manufacturing, 2009 – 2014
5.3.6 Supply Chain Procurement
Table 5.20: Outsourcing of procurement operations, 2009
Table 5.21: Trends in outsourced procurement, 2004 – 2009
Table 5.22: Anticipated outsourced procurement, 2009 – 2014
5.3.7 Supply Chain Administration
Table 5.23: Outsourcing of supply chain administration operations, 2009
Table 5.24: Trends in outsourced supply chain administration, 2004 – 2009
Table 5.26: Anticipated outsourced supply chain administration, 2009 – 2014
5.3.8 Supply Chain Recruitment
Table 5.27: Outsourcing of supply chain recruitment operations, 2009
Table 5.28: Trends in outsourced supply chain recruitment, 2004 – 2009
Table 5.29: Anticipated outsourced supply chain recruitment, 2009 – 2014
5.3.9 Advanced Technology
Table 5.30: Outsourcing of supply chain IT software operations, 2009
Figure 5.4: Supply Chain Directors reducing their outsourced IT software requirements
Table 5.31: Trends in outsourced supply chain IT software, 2004 – 2009
Table 5.32: Anticipated outsourced supply chain IT software, 2009 – 2014
Table 5.33: Outsourcing of supply chain IT management operations, 2009
Table 5.34: Trends in outsourced supply chain IT management, 2004 – 2009
Table 5.35: Anticipated outsourced supply chain IT management, 2009 – 2014
5.4 In-House Logistics
Figure 5.5: Company culture drives in-house logistics operations, 2009
Table 5.36: Key strategic drivers of in-house logistics operations, 2009
5.5 Employing Third-Party Logistics Providers
5.5.1 Trends in the Number of Contracted 3PLs
Figure 5.6: Companies contracting over ten 3PLs has risen year-on-year, 2009
Table 5.37: Number of 3PLs contacted by retailers and manufacturers in Europe, 2007-2009
5.5.2 Short listing a Compatible Logistics Provider
Figure 5.7: Share of manufacturers and retailers approaching up to six 3PLs per contract, 2009
Table 5.38: Number of 3PLs approached per logistics contract, 2009
5.5.3 Finding the Right Third-Party Logistics Provider
Table 5.39: Comparing strategies to investigate potential 3PL partners, 2003 vs. 2009
Figure 5.8: Companies in Europe still rely heavily on ‘internal’ 3PL research methods, 2009
5.5.4 3PL Influence during the Tender Process
Figure 5.9: 3PLs must demonstrate a favourable cost-performance ratio, 2009
Table 5.40: 3PL characteristics that influence logistics outsourcing decisions, 2009
5.6 Key Findings
CHAPTER 6 EVALUATION OF LOGISTICAL COMPETENCE
6.1 Introduction
6.2 Supply Chain Performance Review
Figure 6.1: Supply chains performance has ‘slightly improved’ between 2008 and 2009
Table 6.1: Supply Chain Directors assess their supply chain success from 2008 – 2009
6.3 Key Supply Chain Challenges
Customer Demand
Financial Constraints
Supply Chain Complexity
3PL Performance
Figure 6.2: Rating the overall performance of 3PLs, 2009
Table 6.2: 3PLs’ strategic role in their clients’ supply chain performance, 2009
6.4 Key Findings
CHAPTER 7 STRATEGIC SUPPLY CHAIN DEVELOPMENT
7.1 Introduction
Figure 7.1: Share of Supply Chain Directors that review their supply chain model annually, 2009
Table 7.1: Assessment of alternative supply chain models, 2009
7.3 ‘Open Book’ Contracts
Figure 7.2: Share of Supply Chain Directors that will not consider adopting an ‘open book’ model, 2009
Table 7.2: Manufacturers and retailers evaluate the adoption of ‘open book’ contracts, 2009
7.4 Pan-European Model
7.4.1 Perceived capabilities of pan-European logistics providers
Figure 7.3: Pan-European logistic providers are becoming more effective, 2009
Table 7.3: Evaluating the effectiveness of pan-European logistics providers, 2009
7.4.2 Benefiting from pan-European logistics providers
7.4.3 Employing a pan-European logistics provider
Figure 7.4: Share of Supply Chain Directors that will not adopt a pan-European model, 2009
Table 7.4: Incorporating a pan-European model into logistics strategy, 2009
7.5 Divesting Supply Chain Management
Figure 7.5: Share of Supply Chain Directors that would consider using a 4PL, 2009
Table 7.5: Evaluating the use of the 4PL model, 2009
Figure 7.6: Supply Chain Directors: positive views of 4PLs, 2003 vs. 2009
Table 7.6: Comparing the perceptions of the 4PL model, 2003 vs. 2009
7.6 Shared User Distribution
Figure 7.7: Share of Supply Chain Directors that prefer using unbranded lorries, 2009
Table 7.7: Impact of unbranded lorries during the 3PL selection process, 2009
7.7 Supply Chain Investment
7.7.1 Outsourcing Requirements
Table 7.8: Assessing manufacturers’ and retailers’ logistics model in 2009-2010
Figure 7.8: Share of Supply Chain Directors that plan to change logistics providers, 2010
7.7.2 Operational Investment
Figure 7.9: Share of Supply Chain Directors investing in IT between 2009 - 2010
Table 7.9: Key areas of strategic supply chain investment during 2009-2010
7.8 External Supply Chain Pressures
7.8.1 Human Resources in the Supply Chain
7.8.2 Europe and the Environment
7.9 Key Findings
CHAPTER 8 APPENDIX
CHAPTER 1 EXECUTIVE SUMMARY
1.1 Supply Chain Structure and Decision-Making
Figure 1.1: 15.4% of retailers and manufacturers do not make supply chain decisions at board level, 2009
1.2 Logistics Operations and Outsourcing Dynamics
Figure 1.2: 3PLs must demonstrate a favourable cost-performance ratio, 2009
1.3 Evaluation of Logistical Competence
Figure 1.3: Supply chain performance has ‘slightly improved’ between 2008 and 2009
1.4 Strategic Supply Chain Development
Figure 1.4: Pan-European logistic providers are becoming more effective, 2009
CHAPTER 2 INTRODUCTION
2.1 Research Objectives
2.2 Report Structure
2.3 Research Methodology and Data Definitions
CHAPTER 3 KEY ASSUMPTIONS AND ACTION POINTS
3.1 Key Assumptions
Supply Chain Structure and Decision Making
Logistics Operations and Outsourcing Dynamics
Evaluation of Logistical Competence
Supply Chain Development
3.2 Key Action Points
Effective Partnership Search and Selection
CHAPTER 4 SUPPLY CHAIN STRUCTURE AND DECISION-MAKING
4.1 Introduction
4.2 Strategic Decision-Making
4.2.1 Decision Making at Board Level
Figure 4.1: Retailers and manufacturers that do not make supply chain decisions at board level, 2009
Table 4.1: Share of logistics decisions taken at board level, 2009
4.2.2 Supply Chain Influence at Board Level
Figure 4.2: Share of companies that no longer include Supply Chain Directors at Board level, 2009
Table 4.2: Supply chain influence at board level, 2009
4.3 Supply Chain Decision Makers
4.3.1 Responsibility within the Supply Chain
Table 4.3: Recognising positions of responsibility within the supply chain, 2009
Figure 4.3: Share of Supply Chain Directors that are primary ‘decision-makers’, 2009
Figure 4.4: Share of Transport Directors that are primarily ‘influencers’, 2009
Figure 4.5: Share of Warehousing Directors that are ‘budget holders’ or ‘decision-makers’, 2009
4.4 Investing in Human Resources
Figure 4.6 Overall supply chain headcount has risen between 2007 and 2009
Table 4.4: Trends in the size of supply chain departments from 2007 - 2009
4.5 Key Findings
CHAPTER 5 LOGISTICS OPERATIONS AND OUTSOURCING DYNAMICS
5.1 Introduction
5.2 Geographical Scope of Outsourcing Decisions
Table 5.1: Supply chain outsourcing activity by geographical scope, 2009
Figure 5.1: Retailers and manufacturers outsourcing supply chain activities nationally, 2009
5.3 Dynamics of Strategic Outsourcing Activity
5.3.1 Transportation
Table 5.2: Outsourcing of transportation operations, 2009
Table 5.3: Trends in outsourced transportation operations, 2004 - 2009
Table 5.4: Anticipated outsourced transportation operations, 2009 - 2014
5.3.3 Reverse Logistics
Table 5.5: Outsourcing of reverse logistics operations, 2009
Table 5.6: Trends in outsourced reverse logistics, 2004 - 2009
Table 5.7: Anticipated outsourced reverse logistics, 2009 - 2014
5.3.4 Warehousing - Inventory Storage
Table 5.8: Outsourcing of warehousing operations, 2009
Figure 5.2: Share of retailers and manufacturers will not change outsourcing levels to 2014
Table 5.9: Trends in outsourced warehousing operations, 2004 - 2009
Table 5.10: Anticipated outsourced warehousing, 2009 - 2014
5.3.5 Order Processing
Table 5.11: Outsourcing of order processing operations, 2009
Table 5.12: Trends in outsourced order processing, 2004 - 2009
Table 5.13: Anticipated outsourced order processing, 2009 - 2014
5.3.6 ‘Added Value’ Services
Figure 5.3: Share of retailers and manufacturers increasing ‘added value’ services to 2014
Table 5.14: Outsourcing of ‘added value’ operations, 2009
Table 5.15: Trends in outsourced ‘added value’ services, 2004 – 2009
Table 5.16: Anticipated outsourced ‘added value’ services, 2009 – 2014
5.3.7 Basic Manufacturing
Table 5.17: Outsourcing of basic manufacturing operations, 2009
Table 5.18: Trends in outsourced manufacturing, 2004 - 2009
Table 5.19: Anticipated outsourced manufacturing, 2009 – 2014
5.3.6 Supply Chain Procurement
Table 5.20: Outsourcing of procurement operations, 2009
Table 5.21: Trends in outsourced procurement, 2004 – 2009
Table 5.22: Anticipated outsourced procurement, 2009 – 2014
5.3.7 Supply Chain Administration
Table 5.23: Outsourcing of supply chain administration operations, 2009
Table 5.24: Trends in outsourced supply chain administration, 2004 – 2009
Table 5.26: Anticipated outsourced supply chain administration, 2009 – 2014
5.3.8 Supply Chain Recruitment
Table 5.27: Outsourcing of supply chain recruitment operations, 2009
Table 5.28: Trends in outsourced supply chain recruitment, 2004 – 2009
Table 5.29: Anticipated outsourced supply chain recruitment, 2009 – 2014
5.3.9 Advanced Technology
Table 5.30: Outsourcing of supply chain IT software operations, 2009
Figure 5.4: Supply Chain Directors reducing their outsourced IT software requirements
Table 5.31: Trends in outsourced supply chain IT software, 2004 – 2009
Table 5.32: Anticipated outsourced supply chain IT software, 2009 – 2014
Table 5.33: Outsourcing of supply chain IT management operations, 2009
Table 5.34: Trends in outsourced supply chain IT management, 2004 – 2009
Table 5.35: Anticipated outsourced supply chain IT management, 2009 – 2014
5.4 In-House Logistics
Figure 5.5: Company culture drives in-house logistics operations, 2009
Table 5.36: Key strategic drivers of in-house logistics operations, 2009
5.5 Employing Third-Party Logistics Providers
5.5.1 Trends in the Number of Contracted 3PLs
Figure 5.6: Companies contracting over ten 3PLs has risen year-on-year, 2009
Table 5.37: Number of 3PLs contacted by retailers and manufacturers in Europe, 2007-2009
5.5.2 Short listing a Compatible Logistics Provider
Figure 5.7: Share of manufacturers and retailers approaching up to six 3PLs per contract, 2009
Table 5.38: Number of 3PLs approached per logistics contract, 2009
5.5.3 Finding the Right Third-Party Logistics Provider
Table 5.39: Comparing strategies to investigate potential 3PL partners, 2003 vs. 2009
Figure 5.8: Companies in Europe still rely heavily on ‘internal’ 3PL research methods, 2009
5.5.4 3PL Influence during the Tender Process
Figure 5.9: 3PLs must demonstrate a favourable cost-performance ratio, 2009
Table 5.40: 3PL characteristics that influence logistics outsourcing decisions, 2009
5.6 Key Findings
CHAPTER 6 EVALUATION OF LOGISTICAL COMPETENCE
6.1 Introduction
6.2 Supply Chain Performance Review
Figure 6.1: Supply chains performance has ‘slightly improved’ between 2008 and 2009
Table 6.1: Supply Chain Directors assess their supply chain success from 2008 – 2009
6.3 Key Supply Chain Challenges
Customer Demand
Financial Constraints
Supply Chain Complexity
3PL Performance
Figure 6.2: Rating the overall performance of 3PLs, 2009
Table 6.2: 3PLs’ strategic role in their clients’ supply chain performance, 2009
6.4 Key Findings
CHAPTER 7 STRATEGIC SUPPLY CHAIN DEVELOPMENT
7.1 Introduction
Figure 7.1: Share of Supply Chain Directors that review their supply chain model annually, 2009
Table 7.1: Assessment of alternative supply chain models, 2009
7.3 ‘Open Book’ Contracts
Figure 7.2: Share of Supply Chain Directors that will not consider adopting an ‘open book’ model, 2009
Table 7.2: Manufacturers and retailers evaluate the adoption of ‘open book’ contracts, 2009
7.4 Pan-European Model
7.4.1 Perceived capabilities of pan-European logistics providers
Figure 7.3: Pan-European logistic providers are becoming more effective, 2009
Table 7.3: Evaluating the effectiveness of pan-European logistics providers, 2009
7.4.2 Benefiting from pan-European logistics providers
7.4.3 Employing a pan-European logistics provider
Figure 7.4: Share of Supply Chain Directors that will not adopt a pan-European model, 2009
Table 7.4: Incorporating a pan-European model into logistics strategy, 2009
7.5 Divesting Supply Chain Management
Figure 7.5: Share of Supply Chain Directors that would consider using a 4PL, 2009
Table 7.5: Evaluating the use of the 4PL model, 2009
Figure 7.6: Supply Chain Directors: positive views of 4PLs, 2003 vs. 2009
Table 7.6: Comparing the perceptions of the 4PL model, 2003 vs. 2009
7.6 Shared User Distribution
Figure 7.7: Share of Supply Chain Directors that prefer using unbranded lorries, 2009
Table 7.7: Impact of unbranded lorries during the 3PL selection process, 2009
7.7 Supply Chain Investment
7.7.1 Outsourcing Requirements
Table 7.8: Assessing manufacturers’ and retailers’ logistics model in 2009-2010
Figure 7.8: Share of Supply Chain Directors that plan to change logistics providers, 2010
7.7.2 Operational Investment
Figure 7.9: Share of Supply Chain Directors investing in IT between 2009 - 2010
Table 7.9: Key areas of strategic supply chain investment during 2009-2010
7.8 External Supply Chain Pressures
7.8.1 Human Resources in the Supply Chain
7.8.2 Europe and the Environment
7.9 Key Findings
CHAPTER 8 APPENDIX
1.1 Supply Chain Structure and Decision-Making
Figure 1.1: 15.4% of retailers and manufacturers do not make supply chain decisions at board level, 2009
1.2 Logistics Operations and Outsourcing Dynamics
Figure 1.2: 3PLs must demonstrate a favourable cost-performance ratio, 2009
1.3 Evaluation of Logistical Competence
Figure 1.3: Supply chain performance has ‘slightly improved’ between 2008 and 2009
1.4 Strategic Supply Chain Development
Figure 1.4: Pan-European logistic providers are becoming more effective, 2009
CHAPTER 2 INTRODUCTION
2.1 Research Objectives
2.2 Report Structure
2.3 Research Methodology and Data Definitions
CHAPTER 3 KEY ASSUMPTIONS AND ACTION POINTS
3.1 Key Assumptions
Supply Chain Structure and Decision Making
Logistics Operations and Outsourcing Dynamics
Evaluation of Logistical Competence
Supply Chain Development
3.2 Key Action Points
Effective Partnership Search and Selection
CHAPTER 4 SUPPLY CHAIN STRUCTURE AND DECISION-MAKING
4.1 Introduction
4.2 Strategic Decision-Making
4.2.1 Decision Making at Board Level
Figure 4.1: Retailers and manufacturers that do not make supply chain decisions at board level, 2009
Table 4.1: Share of logistics decisions taken at board level, 2009
4.2.2 Supply Chain Influence at Board Level
Figure 4.2: Share of companies that no longer include Supply Chain Directors at Board level, 2009
Table 4.2: Supply chain influence at board level, 2009
4.3 Supply Chain Decision Makers
4.3.1 Responsibility within the Supply Chain
Table 4.3: Recognising positions of responsibility within the supply chain, 2009
Figure 4.3: Share of Supply Chain Directors that are primary ‘decision-makers’, 2009
Figure 4.4: Share of Transport Directors that are primarily ‘influencers’, 2009
Figure 4.5: Share of Warehousing Directors that are ‘budget holders’ or ‘decision-makers’, 2009
4.4 Investing in Human Resources
Figure 4.6 Overall supply chain headcount has risen between 2007 and 2009
Table 4.4: Trends in the size of supply chain departments from 2007 - 2009
4.5 Key Findings
CHAPTER 5 LOGISTICS OPERATIONS AND OUTSOURCING DYNAMICS
5.1 Introduction
5.2 Geographical Scope of Outsourcing Decisions
Table 5.1: Supply chain outsourcing activity by geographical scope, 2009
Figure 5.1: Retailers and manufacturers outsourcing supply chain activities nationally, 2009
5.3 Dynamics of Strategic Outsourcing Activity
5.3.1 Transportation
Table 5.2: Outsourcing of transportation operations, 2009
Table 5.3: Trends in outsourced transportation operations, 2004 - 2009
Table 5.4: Anticipated outsourced transportation operations, 2009 - 2014
5.3.3 Reverse Logistics
Table 5.5: Outsourcing of reverse logistics operations, 2009
Table 5.6: Trends in outsourced reverse logistics, 2004 - 2009
Table 5.7: Anticipated outsourced reverse logistics, 2009 - 2014
5.3.4 Warehousing - Inventory Storage
Table 5.8: Outsourcing of warehousing operations, 2009
Figure 5.2: Share of retailers and manufacturers will not change outsourcing levels to 2014
Table 5.9: Trends in outsourced warehousing operations, 2004 - 2009
Table 5.10: Anticipated outsourced warehousing, 2009 - 2014
5.3.5 Order Processing
Table 5.11: Outsourcing of order processing operations, 2009
Table 5.12: Trends in outsourced order processing, 2004 - 2009
Table 5.13: Anticipated outsourced order processing, 2009 - 2014
5.3.6 ‘Added Value’ Services
Figure 5.3: Share of retailers and manufacturers increasing ‘added value’ services to 2014
Table 5.14: Outsourcing of ‘added value’ operations, 2009
Table 5.15: Trends in outsourced ‘added value’ services, 2004 – 2009
Table 5.16: Anticipated outsourced ‘added value’ services, 2009 – 2014
5.3.7 Basic Manufacturing
Table 5.17: Outsourcing of basic manufacturing operations, 2009
Table 5.18: Trends in outsourced manufacturing, 2004 - 2009
Table 5.19: Anticipated outsourced manufacturing, 2009 – 2014
5.3.6 Supply Chain Procurement
Table 5.20: Outsourcing of procurement operations, 2009
Table 5.21: Trends in outsourced procurement, 2004 – 2009
Table 5.22: Anticipated outsourced procurement, 2009 – 2014
5.3.7 Supply Chain Administration
Table 5.23: Outsourcing of supply chain administration operations, 2009
Table 5.24: Trends in outsourced supply chain administration, 2004 – 2009
Table 5.26: Anticipated outsourced supply chain administration, 2009 – 2014
5.3.8 Supply Chain Recruitment
Table 5.27: Outsourcing of supply chain recruitment operations, 2009
Table 5.28: Trends in outsourced supply chain recruitment, 2004 – 2009
Table 5.29: Anticipated outsourced supply chain recruitment, 2009 – 2014
5.3.9 Advanced Technology
Table 5.30: Outsourcing of supply chain IT software operations, 2009
Figure 5.4: Supply Chain Directors reducing their outsourced IT software requirements
Table 5.31: Trends in outsourced supply chain IT software, 2004 – 2009
Table 5.32: Anticipated outsourced supply chain IT software, 2009 – 2014
Table 5.33: Outsourcing of supply chain IT management operations, 2009
Table 5.34: Trends in outsourced supply chain IT management, 2004 – 2009
Table 5.35: Anticipated outsourced supply chain IT management, 2009 – 2014
5.4 In-House Logistics
Figure 5.5: Company culture drives in-house logistics operations, 2009
Table 5.36: Key strategic drivers of in-house logistics operations, 2009
5.5 Employing Third-Party Logistics Providers
5.5.1 Trends in the Number of Contracted 3PLs
Figure 5.6: Companies contracting over ten 3PLs has risen year-on-year, 2009
Table 5.37: Number of 3PLs contacted by retailers and manufacturers in Europe, 2007-2009
5.5.2 Short listing a Compatible Logistics Provider
Figure 5.7: Share of manufacturers and retailers approaching up to six 3PLs per contract, 2009
Table 5.38: Number of 3PLs approached per logistics contract, 2009
5.5.3 Finding the Right Third-Party Logistics Provider
Table 5.39: Comparing strategies to investigate potential 3PL partners, 2003 vs. 2009
Figure 5.8: Companies in Europe still rely heavily on ‘internal’ 3PL research methods, 2009
5.5.4 3PL Influence during the Tender Process
Figure 5.9: 3PLs must demonstrate a favourable cost-performance ratio, 2009
Table 5.40: 3PL characteristics that influence logistics outsourcing decisions, 2009
5.6 Key Findings
CHAPTER 6 EVALUATION OF LOGISTICAL COMPETENCE
6.1 Introduction
6.2 Supply Chain Performance Review
Figure 6.1: Supply chains performance has ‘slightly improved’ between 2008 and 2009
Table 6.1: Supply Chain Directors assess their supply chain success from 2008 – 2009
6.3 Key Supply Chain Challenges
Customer Demand
Financial Constraints
Supply Chain Complexity
3PL Performance
Figure 6.2: Rating the overall performance of 3PLs, 2009
Table 6.2: 3PLs’ strategic role in their clients’ supply chain performance, 2009
6.4 Key Findings
CHAPTER 7 STRATEGIC SUPPLY CHAIN DEVELOPMENT
7.1 Introduction
Figure 7.1: Share of Supply Chain Directors that review their supply chain model annually, 2009
Table 7.1: Assessment of alternative supply chain models, 2009
7.3 ‘Open Book’ Contracts
Figure 7.2: Share of Supply Chain Directors that will not consider adopting an ‘open book’ model, 2009
Table 7.2: Manufacturers and retailers evaluate the adoption of ‘open book’ contracts, 2009
7.4 Pan-European Model
7.4.1 Perceived capabilities of pan-European logistics providers
Figure 7.3: Pan-European logistic providers are becoming more effective, 2009
Table 7.3: Evaluating the effectiveness of pan-European logistics providers, 2009
7.4.2 Benefiting from pan-European logistics providers
7.4.3 Employing a pan-European logistics provider
Figure 7.4: Share of Supply Chain Directors that will not adopt a pan-European model, 2009
Table 7.4: Incorporating a pan-European model into logistics strategy, 2009
7.5 Divesting Supply Chain Management
Figure 7.5: Share of Supply Chain Directors that would consider using a 4PL, 2009
Table 7.5: Evaluating the use of the 4PL model, 2009
Figure 7.6: Supply Chain Directors: positive views of 4PLs, 2003 vs. 2009
Table 7.6: Comparing the perceptions of the 4PL model, 2003 vs. 2009
7.6 Shared User Distribution
Figure 7.7: Share of Supply Chain Directors that prefer using unbranded lorries, 2009
Table 7.7: Impact of unbranded lorries during the 3PL selection process, 2009
7.7 Supply Chain Investment
7.7.1 Outsourcing Requirements
Table 7.8: Assessing manufacturers’ and retailers’ logistics model in 2009-2010
Figure 7.8: Share of Supply Chain Directors that plan to change logistics providers, 2010
7.7.2 Operational Investment
Figure 7.9: Share of Supply Chain Directors investing in IT between 2009 - 2010
Table 7.9: Key areas of strategic supply chain investment during 2009-2010
7.8 External Supply Chain Pressures
7.8.1 Human Resources in the Supply Chain
7.8.2 Europe and the Environment
7.9 Key Findings
CHAPTER 8 APPENDIX
CHAPTER 1 EXECUTIVE SUMMARY
1.1 Supply Chain Structure and Decision-Making
Figure 1.1: 15.4% of retailers and manufacturers do not make supply chain decisions at board level, 2009
1.2 Logistics Operations and Outsourcing Dynamics
Figure 1.2: 3PLs must demonstrate a favourable cost-performance ratio, 2009
1.3 Evaluation of Logistical Competence
Figure 1.3: Supply chain performance has ‘slightly improved’ between 2008 and 2009
1.4 Strategic Supply Chain Development
Figure 1.4: Pan-European logistic providers are becoming more effective, 2009
CHAPTER 2 INTRODUCTION
2.1 Research Objectives
2.2 Report Structure
2.3 Research Methodology and Data Definitions
CHAPTER 3 KEY ASSUMPTIONS AND ACTION POINTS
3.1 Key Assumptions
Supply Chain Structure and Decision Making
Logistics Operations and Outsourcing Dynamics
Evaluation of Logistical Competence
Supply Chain Development
3.2 Key Action Points
Effective Partnership Search and Selection
CHAPTER 4 SUPPLY CHAIN STRUCTURE AND DECISION-MAKING
4.1 Introduction
4.2 Strategic Decision-Making
4.2.1 Decision Making at Board Level
Figure 4.1: Retailers and manufacturers that do not make supply chain decisions at board level, 2009
Table 4.1: Share of logistics decisions taken at board level, 2009
4.2.2 Supply Chain Influence at Board Level
Figure 4.2: Share of companies that no longer include Supply Chain Directors at Board level, 2009
Table 4.2: Supply chain influence at board level, 2009
4.3 Supply Chain Decision Makers
4.3.1 Responsibility within the Supply Chain
Table 4.3: Recognising positions of responsibility within the supply chain, 2009
Figure 4.3: Share of Supply Chain Directors that are primary ‘decision-makers’, 2009
Figure 4.4: Share of Transport Directors that are primarily ‘influencers’, 2009
Figure 4.5: Share of Warehousing Directors that are ‘budget holders’ or ‘decision-makers’, 2009
4.4 Investing in Human Resources
Figure 4.6 Overall supply chain headcount has risen between 2007 and 2009
Table 4.4: Trends in the size of supply chain departments from 2007 - 2009
4.5 Key Findings
CHAPTER 5 LOGISTICS OPERATIONS AND OUTSOURCING DYNAMICS
5.1 Introduction
5.2 Geographical Scope of Outsourcing Decisions
Table 5.1: Supply chain outsourcing activity by geographical scope, 2009
Figure 5.1: Retailers and manufacturers outsourcing supply chain activities nationally, 2009
5.3 Dynamics of Strategic Outsourcing Activity
5.3.1 Transportation
Table 5.2: Outsourcing of transportation operations, 2009
Table 5.3: Trends in outsourced transportation operations, 2004 - 2009
Table 5.4: Anticipated outsourced transportation operations, 2009 - 2014
5.3.3 Reverse Logistics
Table 5.5: Outsourcing of reverse logistics operations, 2009
Table 5.6: Trends in outsourced reverse logistics, 2004 - 2009
Table 5.7: Anticipated outsourced reverse logistics, 2009 - 2014
5.3.4 Warehousing - Inventory Storage
Table 5.8: Outsourcing of warehousing operations, 2009
Figure 5.2: Share of retailers and manufacturers will not change outsourcing levels to 2014
Table 5.9: Trends in outsourced warehousing operations, 2004 - 2009
Table 5.10: Anticipated outsourced warehousing, 2009 - 2014
5.3.5 Order Processing
Table 5.11: Outsourcing of order processing operations, 2009
Table 5.12: Trends in outsourced order processing, 2004 - 2009
Table 5.13: Anticipated outsourced order processing, 2009 - 2014
5.3.6 ‘Added Value’ Services
Figure 5.3: Share of retailers and manufacturers increasing ‘added value’ services to 2014
Table 5.14: Outsourcing of ‘added value’ operations, 2009
Table 5.15: Trends in outsourced ‘added value’ services, 2004 – 2009
Table 5.16: Anticipated outsourced ‘added value’ services, 2009 – 2014
5.3.7 Basic Manufacturing
Table 5.17: Outsourcing of basic manufacturing operations, 2009
Table 5.18: Trends in outsourced manufacturing, 2004 - 2009
Table 5.19: Anticipated outsourced manufacturing, 2009 – 2014
5.3.6 Supply Chain Procurement
Table 5.20: Outsourcing of procurement operations, 2009
Table 5.21: Trends in outsourced procurement, 2004 – 2009
Table 5.22: Anticipated outsourced procurement, 2009 – 2014
5.3.7 Supply Chain Administration
Table 5.23: Outsourcing of supply chain administration operations, 2009
Table 5.24: Trends in outsourced supply chain administration, 2004 – 2009
Table 5.26: Anticipated outsourced supply chain administration, 2009 – 2014
5.3.8 Supply Chain Recruitment
Table 5.27: Outsourcing of supply chain recruitment operations, 2009
Table 5.28: Trends in outsourced supply chain recruitment, 2004 – 2009
Table 5.29: Anticipated outsourced supply chain recruitment, 2009 – 2014
5.3.9 Advanced Technology
Table 5.30: Outsourcing of supply chain IT software operations, 2009
Figure 5.4: Supply Chain Directors reducing their outsourced IT software requirements
Table 5.31: Trends in outsourced supply chain IT software, 2004 – 2009
Table 5.32: Anticipated outsourced supply chain IT software, 2009 – 2014
Table 5.33: Outsourcing of supply chain IT management operations, 2009
Table 5.34: Trends in outsourced supply chain IT management, 2004 – 2009
Table 5.35: Anticipated outsourced supply chain IT management, 2009 – 2014
5.4 In-House Logistics
Figure 5.5: Company culture drives in-house logistics operations, 2009
Table 5.36: Key strategic drivers of in-house logistics operations, 2009
5.5 Employing Third-Party Logistics Providers
5.5.1 Trends in the Number of Contracted 3PLs
Figure 5.6: Companies contracting over ten 3PLs has risen year-on-year, 2009
Table 5.37: Number of 3PLs contacted by retailers and manufacturers in Europe, 2007-2009
5.5.2 Short listing a Compatible Logistics Provider
Figure 5.7: Share of manufacturers and retailers approaching up to six 3PLs per contract, 2009
Table 5.38: Number of 3PLs approached per logistics contract, 2009
5.5.3 Finding the Right Third-Party Logistics Provider
Table 5.39: Comparing strategies to investigate potential 3PL partners, 2003 vs. 2009
Figure 5.8: Companies in Europe still rely heavily on ‘internal’ 3PL research methods, 2009
5.5.4 3PL Influence during the Tender Process
Figure 5.9: 3PLs must demonstrate a favourable cost-performance ratio, 2009
Table 5.40: 3PL characteristics that influence logistics outsourcing decisions, 2009
5.6 Key Findings
CHAPTER 6 EVALUATION OF LOGISTICAL COMPETENCE
6.1 Introduction
6.2 Supply Chain Performance Review
Figure 6.1: Supply chains performance has ‘slightly improved’ between 2008 and 2009
Table 6.1: Supply Chain Directors assess their supply chain success from 2008 – 2009
6.3 Key Supply Chain Challenges
Customer Demand
Financial Constraints
Supply Chain Complexity
3PL Performance
Figure 6.2: Rating the overall performance of 3PLs, 2009
Table 6.2: 3PLs’ strategic role in their clients’ supply chain performance, 2009
6.4 Key Findings
CHAPTER 7 STRATEGIC SUPPLY CHAIN DEVELOPMENT
7.1 Introduction
Figure 7.1: Share of Supply Chain Directors that review their supply chain model annually, 2009
Table 7.1: Assessment of alternative supply chain models, 2009
7.3 ‘Open Book’ Contracts
Figure 7.2: Share of Supply Chain Directors that will not consider adopting an ‘open book’ model, 2009
Table 7.2: Manufacturers and retailers evaluate the adoption of ‘open book’ contracts, 2009
7.4 Pan-European Model
7.4.1 Perceived capabilities of pan-European logistics providers
Figure 7.3: Pan-European logistic providers are becoming more effective, 2009
Table 7.3: Evaluating the effectiveness of pan-European logistics providers, 2009
7.4.2 Benefiting from pan-European logistics providers
7.4.3 Employing a pan-European logistics provider
Figure 7.4: Share of Supply Chain Directors that will not adopt a pan-European model, 2009
Table 7.4: Incorporating a pan-European model into logistics strategy, 2009
7.5 Divesting Supply Chain Management
Figure 7.5: Share of Supply Chain Directors that would consider using a 4PL, 2009
Table 7.5: Evaluating the use of the 4PL model, 2009
Figure 7.6: Supply Chain Directors: positive views of 4PLs, 2003 vs. 2009
Table 7.6: Comparing the perceptions of the 4PL model, 2003 vs. 2009
7.6 Shared User Distribution
Figure 7.7: Share of Supply Chain Directors that prefer using unbranded lorries, 2009
Table 7.7: Impact of unbranded lorries during the 3PL selection process, 2009
7.7 Supply Chain Investment
7.7.1 Outsourcing Requirements
Table 7.8: Assessing manufacturers’ and retailers’ logistics model in 2009-2010
Figure 7.8: Share of Supply Chain Directors that plan to change logistics providers, 2010
7.7.2 Operational Investment
Figure 7.9: Share of Supply Chain Directors investing in IT between 2009 - 2010
Table 7.9: Key areas of strategic supply chain investment during 2009-2010
7.8 External Supply Chain Pressures
7.8.1 Human Resources in the Supply Chain
7.8.2 Europe and the Environment
7.9 Key Findings
CHAPTER 8 APPENDIX
