Supply Chain Shaman

JUNE 19, 2018

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. This is the fun part of my job. This work is not easy. Today, it is not.

Gartner 218

Gartner Supply Chain Design Software Supply Chain Design Supply Chain Strategy 218

Supply Chain Shaman

JUNE 15, 2018

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. Figure 1: Supply Chain Metrics Are a Balancing Act. The metrics shown in Figure 1 are difficult to improve together. Consistent data is not available prior to 2006.)

Sourcing Strategies 150

Sourcing Strategies Supply Chain Planning Software Inventory Reduction Modeling Software 150

Supply Chain Shaman

JUNE 7, 2018

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.

Supply Chain Planning Software 235

Supply Chain Planning Software Supply Chain Design Software Optimization Software Forecasting Software 235

Supply Chain Shaman

MARCH 18, 2018

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics.

Optimal Sourcing 173

Optimal Sourcing Supply Chain Planning Software Supply Chain Optimization Supply Chain Design Software 173

Supply Chain Shaman

OCTOBER 5, 2018

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. The orbit chart below illustrates L’Oréal’s performance at the intersection of two metrics.

Case Study 270

Case Study Inventory Reduction Agile and Lean Supply Chain Study 270

Kinaxis

JUNE 1, 2016

I am bolder on Samsung, simply because they had the highest 2016 Inventory Turns aside from McDonalds. The new trend to be sustainable is part of the current category: Revenue Growth, so why add another category like CSR when we should be moving towards the core supply chain metrics of total delivered cost and customer service.

Gartner 100

Gartner Supply Chain Strategy Supply Chain Predictive Analytics Software 100

Supply Chain Shaman

FEBRUARY 12, 2017

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.

Pharmaceutical 150

Pharmaceutical Agile and Lean Supply Chain Supply Chain Design Software Supply Chain Design 150