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Achieving Resilience in the

Manufacturing Supply Chain

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Research & Learnings from Leading Manufacturers
ALL SPEND, ALL SUPPLIERS, NO COMPROMISES
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Survey
Respondent
Profile

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Respondent Profile
• 211 respondents are represented in the survey results, all from the manufacturing industry. They work in a variety
of sub-segments, with the largest percentage in Industrial Machinery
• Nearly half of respondents’ companies operate more than 10 plants

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Respondent Job Level/Function
• The majority of respondents indicate their job level as manager or higher and they represent a
variety of job functions

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Respondent Company Profile
• Four in five respondents indicate their company has 1,000 or more employees
• 44% of respondents indicate that their company has more than 10,000 employees

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Respondent Company Profile
• Only respondents who work for companies with $100 million or more in revenue are included in the results
• 70% of respondents indicate their company has annual revenue of $500 million or more

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Survey Results
& Insights

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Supply Chains are the Lifeblood of Manufacturing Organizations

• Despite facing constant global

threats, manufacturing supply chains
are expected to consistently produce
profit-generating products while also
fostering innovation and value

• The resiliency of a company’s supply

chain is critical to its ability to
survive and thrive

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Supply Chain Challenges and Vulnerabilities
• Manufacturers have traditionally faced siloed business processes and technology
solutions that have failed to bring together these key components:

Company Stakeholders Data Strategy Supply Chain

• This has led to vulnerable, rigid supply chains. Successful companies are using
advanced technology solutions that improve visibility throughout all levels of the
supply chain, allowing for flexibility and resiliency

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Supply Chain Transparency
and Visibility

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The Benefits of Enhanced Supplier
Visibility and Collaboration
• Over half of respondents believe visibility and collaboration within their supply chain would reduce
inventory and costs, minimize supply issues, and improve profitability and decision making*

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Roadblocks to Supplier Visibility and
Collaboration
• Deeper visibility and collaboration with suppliers is being hampered by a lack of alignment between
key stakeholders, no formalized processes, and differences in organizational goals

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Suppliers Are Key to Navigating
Global Crises
• The global pandemic has proven that supplier collaboration and visibility have never been more important.
Anticipating risk and developing contingency plans are crucial to the survival of manufacturing supply chains

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 Mitigating Risk
• All respondents see standardization of processes as the top defense against risk moving forward
• Manufacturers can improve supplier risk and performance data by implementing modern procurement
solutions that seamlessly integrate systems and ensure that decisions and actions are informed

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Barriers to Leveraging Procurement
and Supply Chain Digital Solutions
• Incomplete/untrustworthy data is a top barrier to leveraging advanced procurement and supply chain solutions
• Also of concern is accessing data across disparate systems with no integration/connectivity

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 ALL SPEND, ALL SUPPLIERS, NO COMPROMISES

Supply Chain Transparency

& Visibility
Key Takeaways:
• Visibility and collaboration would reduce costs, minimize supply
issues, and improve profitability and decision making

• Roadblocks include lack of alignment between key stakeholders,

no formalized processes, and bad data quality

• Standardization of processes and supplier monitoring are key to

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mitigating risk

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Launching New Products

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Launching New Products

• After decades of technological advances, 50% of

respondents indicate that new products are launched
on time and on budget less than 75% of the time

• Improving product launch success and profitability

begins with examining where things break down
among teams and systems

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Improving Product Launch Success
• Respondents are considering a variety of investments to improve their ability to develop and launch new
products, particularly manufacturing execution, IoT, and procurement/supply chain solutions

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Leveraging Advanced Procurement
and Supply Chain Solutions
• Few companies are far along in their digital transformation and are missing out on opportunities to generate maximum
value for their company. Only 20% of respondents are handling procurement and supply chain monitoring through a
single, cross-enterprise solution

22%

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Monitoring Supplier Risk & Performance
• Only 16% of manufacturers are using standard processes and advanced digital platforms to monitor
supplier performance during the product development process. Most use a mix of digital and analog systems

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 ALL SPEND, ALL SUPPLIERS, NO COMPROMISES

Launching New Products

Key Takeaways:
• Despite technological advances, new products are developed and
launched on time and on budget less than 75% of the time

• Only 20% of respondents are handling procurement and supply chain

monitoring through a single, cross-enterprise solution

• Product launch success will improve with collaborative solutions that

bridge the gap between systems

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Digitizing All Spend

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Digitizing Spend
• Digitizing processes across all spend types enables more informed decision-making, greater resiliency of the supply chain, and
opportunities for innovation*
• Over half of respondents agree that digitizing direct spend would provide the most benefit to their supply chain
• Few companies are fully digitized in any spend category

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Managing Direct Spend
• The parts of direct spend that have been digitized the most are downstream (procurement/ordering, invoicing),
followed by full Source to Pay. Once again, digital transformation is still in its infancy for most respondents

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 ALL SPEND, ALL SUPPLIERS, NO COMPROMISES

Digitizing All Spend

Key Takeaways:
• Digitizing procurement and supply chain processes across all spend
types enables more strategic, better informed decision-making

• Only a small percentage of companies are fully digitized in any

spend category

• Multiple systems that focus on different types of spend result in

inefficiencies, higher costs, and bad data quality

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Research Study Summary

• The insights in this report make it clear that there is opportunity to increase ROI through the often-
overlooked area of digitizing procurement and supply chain management. To do so will require solutions
that enable deeper and broader visibility, real-time collaboration, and automated spend management

• The findings reveal that internal strategies and alignment will improve product success and margins,
grow revenue and innovation, ensure reliable supply of product, manage risk, and maximize quality and
performance

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Conclusions
Supply Chain Transparency and Visibility
Manufacturers believe the benefits from improving transparency and visibility
throughout the supply chain are significant. Advanced solutions can help
standardize processes and incorporate supplier risk management into all
procurement functions to improve supply chain resilience.

Launching New Products

Manufacturers still struggle with launching new products on time and on budget.
Advanced procurement and supply chain solutions designed for manufacturers can
help by enabling collaboration throughout the Source-to-Pay process with industry-
specific capabilities.

Digitizing All Spend

Manufacturers overwhelmingly recognize the benefits of digitizing all types of
spend but are at various stages of transformation. The solutions they invest in
should have the capability to manage all spend types and suppliers to achieve

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maximum value.

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Typical Manufacturing Process & Environment

Engineering Sourcing Suppliers Quality Manufacturing

New Product

Engineering Produce Ensure Requirements Assemble, Finish,

Sourcing
Components Are Met etc...

PLM ERP / MRP

Ivalua S2C, Quality & Supplier Mgmt Ivalua Supply Chain Collab

Ivalua is the collaborative bridge between the PLM, ERP & MRP systems and the supply chain throughout the

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Manufacturing process.
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Manufacturing Organizations That Digitize Spend Can…

$
$
Improve Grow Revenue
Margins & Innovate

!!
Ensure Reliable Manage Risk.
Supply of Product Ensure Quality, & Performance

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 THANK YOU!
Learn More at: www.ivalua.com/solutions/industry/manufacturing/

Ready to Get Started? www.ivalua.com/lets-talk/

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