Remove 2009 Remove Inventory Remove Metrics
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Uh-Oh! Insights On How P&G Failed And What This Means For You

Supply Chain Shaman

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.) Understanding this relationship requires modeling. (A A Case Study.

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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. Supply Chain Design.

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Q&A on the Supply Chains to Admire

Supply Chain Shaman

Nineteen of the 200 companies met the performance criteria of improving operating margin, inventory turns, and ROIC together in concert for the years of 2006-2013 or 2009-2013. However, due to a variety of factors, companies are losing ground on driving progress on both inventory turns and operating margin.

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BASF: A Story of a Supply Chain Leader

Supply Chain Shaman

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. Inventory Turns. About the Supply Chains to Admire Research. Operating Margin.

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Three Lies and a Truth

Supply Chain Shaman

Here is the list: Supply chain technology implementations have reduced inventory. Here they are: The Lie of Inventory Reduction. Repeatedly, I heard that supply chain applications have saved costs, reduced inventory and improved customer service. ” I played three lies and a truth with the group. The reason? They did not.

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Measuring Up?

Supply Chain Shaman

The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. In our analysis, only one out of ten companies successfully improves operating margins and inventory turns at the same time. We find that companies can improve one, but not two of the metrics.

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Q&A on the Supply Chains to Admire

Supply Chain Insights

Nineteen of the 200 companies met the performance criteria of improving operating margin, inventory turns, and ROIC together in concert for the years of 2006-2013 or 2009-2013. However, due to a variety of factors, companies are losing ground on driving progress on both inventory turns and operating margin.