Remove 2006 Remove Beverage Remove Inventory Remove Manufacturing
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Measuring Up?

Supply Chain Shaman

The average manufacturing company’s supply chain organization is 15 years old. To help, in this post, we provide you with some insights for the period of 2006-2015. In our analysis, only one out of ten companies successfully improves operating margins and inventory turns at the same time. A Look at History. Resiliency.

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Collaboration? When It Comes to Cash-to-Cash, We Don’t Know How to Walk the Talk

Supply Chain Shaman

Inventory, in this time of uncertainty, is the organization’s most important buffer to protect against variability. However, organizations are not good at managing inventory. Cash-to-cash is a compound metric: (Days of Receivables+Days of Inventory)-Days of Payables=Cash Conversion Cycle. Inventory. My takeaway?

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New Bookends: The Tale of Supply Chain Global Leaders in Consumer Products

Supply Chain Shaman

The report analyzes supply chain performance and improvement by the Consumer Products Leaders in the period of 2006-2014. In the selection of time frames to analyze, we look at the long-term view including the recessionary period of 2006-2009, the post recessionary period of 2009-2014 and the more recent time period of 2011-2014.

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Stories of Supply Chain Leadership: An Interview with Joan Motsinger of Seagate

Supply Chain Shaman

In our work on the Supply Chains to Admire report , we tracked the progress of manufacturing, retailing and distribution companies for the period of 2006 to 2013 and 2009-2013. We then rated companies on their ability to manage and improve a portfolio of metrics: operating margin, inventory turns and Return on Invested Capital (ROIC).

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Let the Qs Begin

Supply Chain Shaman

While the performance rankings were based on comparisons of inventory turns, operating margin and Return on Invested Capital (ROIC) for the periods of 2006-2013 and 2009-2013, the concept is that to be a supply chain leader you must outperform and drive improvement. We find that this is true of too few companies. ” Yes, I said.

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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. We are not as mature as CPG or Food/Beverage. The patterns are circular.

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Mush

Supply Chain Shaman

I just don’t think the comparison of very different industries in a spreadsheet based on growth, inventory values, and Return on Assets (ROA) is meaningful. The metrics of growth, Return on Invested Capital, Inventory Turns and Operating Margin have the highest correlation to market capitalization.

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