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Congratulating the Supply Chains to Admire Winners

Supply Chain Shaman

It is now our fifth year of analyzing balance sheets to understand which companies are outperforming their peer groups on the metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC) while driving improvement. Wal-Mart and TJX Orbit Chart for Operating Margin and Inventory Turns for the Period of 2006-2017.

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Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

When we study 600 public companies by peer group, at the intersection of inventory turns and operating margin, only 5% drive improvement. To make the argument, let’s look at industry orbit charts in aggregate for the period of 2006-2017 for the apparel and chemical companies. of revenue on IT are we improving inventories.

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The Fight of the Titans

Supply Chain Shaman

My caution is not so fast… 95% of companies are not making progress at the intersection of growth, operating margin, inventory turns and asset strategies. Here I show orbit chart comparisons at the intersection of operating margin and inventory turns for the period of 2006-2017. I was wrong. Not much has changed.

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Clorox Successfully Implements a Program for Value Chain Segmentation

Supply Chain Shaman

It was a strategy day in 2006. Clorox was a Supply Chains to Admire Winner in 2016 and in the top-tier of performance within the peer group for 2017/2018.). In our research we find that over the course of the last decade (2006-2017), we find that each vertical industry has a well-defined pattern of performance.

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L’Oréal: A Case Study in Supply Chain Excellence

Supply Chain Shaman

The award, based on beating the industry peer group on rate of improvement on the key metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) while outperforming their peer group, is tough to achieve. Orbit Chart for L’Oréal at the Intersection of Inventory Turns and Operating Margin.

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Novo Nordisk: A Story of a Supply Chain Leader

Supply Chain Shaman

Note that neither company is making progress at the intersection of operating margin and inventory turns. The level of performance in 2015 is the same as 2006. Performance of BMS and Merck at the Intersection of Inventory Turns and Operating Margin. The patterns are circular. Network of Networks.

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How the UAW Strike is Shaking Up the Automotive Supply Chain

Resilinc

Opened in 2006, this plant is responsible for building the Buick Enclave and the Chevrolet Traverse. While companies do have some excess inventory available, the automotive supply chain is experiencing layoffs, furloughs, auto parts shortages, and idling operations. GM’s Lancing Delta Township, conversely, is GM’s newest US plant.