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Measuring Up?

Supply Chain Shaman

The average manufacturing company’s supply chain organization is 15 years old. While companies want to improve supply chain performance and drive value, it is easier said than done. To help, in this post, we provide you with some insights for the period of 2006-2015. For many companies, improving results is elusive.

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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. We group companies by industry sector because the industries are so different in performance.

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The Fight of the Titans

Supply Chain Shaman

But how do companies best translate strategy to action? Most companies, along with consultants, feel that they know the definition of supply chain excellence. 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.

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Announcing the Supply Chains to Admire 2015

Supply Chain Shaman

It is for this reason, that we analyze the patterns of the Metrics That Matter using orbit charts over the period of 2006-2014. The analysis is designed to analyze supply chain leader success on a portfolio of metrics. Nine out of ten are stuck unable to make improvements in these Supply Chain Metrics That Matter.

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Provoking the Industry to Move Past Incrementalism

Supply Chain Shaman

For the past month, I have been working alongside companies implementing digital strategies. In most companies, I find, that there is an organizational imperative, but no consensus on the goal. Instead of pushing innovation forward, I see companies using the term “digital” as a path for IT spending. ” Incrementalism.

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Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

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.

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

Supply Chain Shaman

I define collaboration as the ability to establish long-term win/win value propositions between and among companies. Yet, only 20% of companies actively manage supplier development programs to get cash to suppliers in need. Cash-to-Cash Metrics. In times of growth, when companies are funding inventory builds, cash is needed.