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Mining Supply Chain Data for Insights

Supply Chain Shaman

Over the course of the last quarter, with the help from Cloudera, we built a data lake of with data from 1449 public companies. We loaded 493 financial metrics from balance sheets and income statements for each company into the data lake for the period of 2004-2016 using YCharts data.

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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.

Gartner 209
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The Fight of the Titans

Supply Chain Shaman

Figure 1: Supply Chain Metrics Are a Balancing Act. The metrics shown in Figure 1 are difficult to improve together. Most companies improve singular metrics but are not able to drive portfolio. Here I show orbit chart comparisons at the intersection of 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

However, most of the data is not a normal distribution. 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. An orbit chart is a plotting of data at the intersection of two metrics. Data latency is an issue and an opportunity.

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Q&A on the Supply Chains to Admire

Supply Chain Shaman

Here we share the answers to the questions that we get the most often about this research: What is the source of data? The data analyzed to compile the Supply Chains to Admire report came from publicly-available information from balance sheets and income statements. As a result, you will not find 3M or GE in the data.

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Mush

Supply Chain Shaman

I think that the discussion on supply chain excellence should be a data-driven discussion. As a result, the metrics have to be viewed together as a pattern over time. In the journey, the supply chain leader needs to improve the potential of a portfolio of metrics. I find value in looking at these metrics together.

Gartner 304
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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. The Effective Frontier.