Supply Chain Shaman
MARCH 28, 2016
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. The analysis is for two time periods: 2006-2015 and 2009-2015. A Look at History. Resiliency.
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. 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.
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Supply Chain View from the Field
AUGUST 28, 2013
Historically, businesses have used one of two extremes for inventory management: push-based or pull-based. Push-based inventory management uses demand forecast to manage inventory and replenish from the supply base. The pull-based method relies on the ability to replenish the “pulled” demand.
GlobalTranz
MARCH 1, 2018
In 2003, Walmart announced that all of its suppliers would need to have Radio frequency identification (RFID) tags on all pallets and cases by 2006. In the proper controlled situation, like a distribution center or store, passive RFID can increase visibility without the expensive costs of active RFID tags.
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. Orbit Chart for L’Oréal at the Intersection of Inventory Turns and Operating Margin. Growing Pains.
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. Opportunities?
Supply Chain Shaman
JANUARY 28, 2015
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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