article thumbnail

Measuring Up?

Supply Chain Shaman

To help, in this post, we provide you with some insights for the period of 2006-2015. The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. We find that companies can improve one, but not two of the metrics. A Look at History. Resiliency.

article thumbnail

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. Due to increased competition, retailers are taking supply chain management more seriously.

Gartner 209
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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.

article thumbnail

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).

article thumbnail

Mining Supply Chain Data for Insights

Supply Chain Shaman

These are mainly North American-based manufacturers, distributors and retailers.) 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. Correlations Between Survey Factors and Financial Metrics.

article thumbnail

Mush

Supply Chain Shaman

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. The metrics of growth, Return on Invested Capital, Inventory Turns and Operating Margin have the highest correlation to market capitalization.

Gartner 304
article thumbnail

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. Aligned Metrics. We find that this is true of too few companies.