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It is data driven research: a deep analysis of performance, improvement and Price to Tangible Book Value of 320 companies across 31 industries for the period of 2009-2015. Check out their performance by plotting year-over-year metrics at the intersection of two ratios and look at the patterns. We hope to see you there!
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As As a group, these metrics have the highest correlation to market capitalization. As a group, public companies want to make progress to both drive and sustain metrics performance, but they cannot.
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.
At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) I never calculated and accounted for the inter-dependencies between metrics.
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).
Supply chain leaders manage a complex system of non-linear, but very inter-connected metrics. Leaders need to balance a portfolio of metrics. Year-over-year Improvement at the Intersections of the Metrics. It is for this reason, that we are hard at work on the analysis of the Supply Chain Metrics That Matter series of reports.
Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The The Supply Chain Metrics That Matter are a portfolio of metrics which correlate to higher market capitalization. About the Supply Chains to Admire Research. Performance. Operating Margin.
Here’s what I wrote back on this date in 2009, as I recalled the events of that tragic day eight years earlier: I grew up in Brooklyn, New York, near Red Hook and the docks. They also lack process controls and metrics. Today is September 11. I never forget. Some things never change. Time will tell. And with that, have a happy weekend!
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. Overall Results on the Supply Chain Metrics That Matter. Supply chain leaders make progress in three-to-five years.
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. Companies passing these two tests are then analyzed against the performance factors for 2009-2015: Growth. We had silo’s and different functional areas had competing metrics that prevented progress.
In my work tonight, I carefully studied 2006-2015 financial results to select the Supply Chains to Admire winners. The winners drive improvement while posting financial results in the Supply Chain Metrics That Matter ahead of the peer group. Higher percentage of growth than the industry average for the period of 2006-2015.
It is data driven research: a deep analysis of performance, improvement and Price to Tangible Book Value of 320 companies across 31 industries for the period of 2009-2015. Check out their performance by plotting year-over-year metrics at the intersection of two ratios and look at the patterns. We hope to see you there!
But in fact, all the metrics must be in balance,” says Lora Cecere from Supply Chain Insights. The analyst was joined by Bram Desmet, managing director of Solventure, to present her latest book, Supply Chain Metrics that Matter, in Brussels on 18 March 2015. Supply Chain Metrics that Matter.
We have found that supply chain metrics are gnarly and complicated.During In our program, cost avoidance, while desirable, does not count towards the metric. Over the course of the last two years, we at Supply Chain Insight s have worked on a methodology to gauge supply chain improvement. We named it the Supply Chain Index.
As I explain in my book, The Power of Resilience: How the Best Companies Manage the Unexpected (MIT Press, October 2015), companies can improve their disruption detection capabilities in a number of ways. In 2009, the United States boosted import duties on Chinese tires from 4% to 35%, and did so with only 15 days’ notice.
For December 2015, retail sales were the lowest since 2009. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. Last week, Wal-Mart announced the closing of 269 stores and the layoffs of 10,000 employees. What does this mean?
The level of performance in 2015 is the same as 2006. Orbit Chart for Novo Nordisk at the Intersection of Operating Margin and Inventory Turns for the period of 2006-2015. Performance and Improvement within the Pharmaceutical Industry for 2009-2015. The patterns are circular.
They went from #34 in 2015 to #18 in 2016. The new trend to be sustainable is part of the current category: Revenue Growth, so why add another category like CSR when we should be moving towards the core supply chain metrics of total delivered cost and customer service. Remember in 2015, Amazon’s ROA was 0.0%. Vincente Fox.
Unfortunately, we find most companies are moving backwards on the Supply Chain Metrics That Matter (growth, operating margin, inventory turns and Return on Invested Capital) or are making progress on singular metrics instead of driving performance improvement on a balanced portfolio of supply chain metrics that correlate to market capitalization.
Mariotti states that you first have to measure it, and he outlines several metrics and techniques in the book, including ranking customers by annual sales, profit, and gross margin percentage. How do you reduce supply chain complexity, or at least slow its growth?
I want to understand why some companies outperform on the Supply Chain Metrics That Matter while others do not. The Company was my client for many years at AMR Research, and when I look at Mark’s slides for the webinar, I see many of the elements that we heatedly debated in the period of 2009-2010. I am on a mission.
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