article thumbnail

Supply Chain Leaders Rearranging Deck Chairs? Yes, I Think So.

Supply Chain Shaman

They rock back and forth in improving singular metrics but struggle to improve a portfolio of growth, margin, inventory performance, and asset utilization. Comparing 2010-2019. When we look at public companies at the intersection of operating margin and inventory turns or growth and Return on Invested Capital.

article thumbnail

Trying to Push Content Above the Noise

Supply Chain Shaman

The month of December was my longest writing respite since I started this blog in January 2010. All four of these companies were selected as winners of the Gartner Top 25 award, yet all four underperform on growth and no company is driving improvement at the intersection of operating margin and inventory turns. Today is a writing day.

Gartner 262
Insiders

Sign Up for our Newsletter

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

article thumbnail

Healthcare: A Call For Action

Supply Chain Shaman

The first value is the average for the period of 2010-2016 while the second number shows the average change comparing 2016 to 2010. For example, for the period of 2010-2016, pharmaceutical company margins averaged 22%. Comparing 2010 to 2016, operating margin improved by 4%. The highest of any industry.)

article thumbnail

Supply Chains to Admire – Technology Computer Hardware Calculation Example

Supply Chain Insights

Balance looks at Revenue Growth and Return on Invested Capital results from 2010 to 2016. Strength looks at Operating Margin and Inventory Turn results from 2010 to 2016. Cisco showed strong improvement in both of these metrics from 2010 to 2016. Supply Chains to Admire Methodology. Supply Chain Index Methodology.

article thumbnail

Supply Chain Diagnostic: A Four-Step Process

Supply Chain Shaman

In Figure 1, we show the aggregate trend of the chemical industry in an orbit chart format showing year-over-year results at the intersection of two metrics operating margin and inventory turns. In the period of 2010-2018, within the chemical industry, margins fluctuated, largely driven by the price of crude, but inventory turns plummeted.

article thumbnail

Who Should Be In The Winner’s Circle?

Supply Chain Shaman

The research project analyzed 1200 combinations of 180 metrics for four hundred companies for the period of 2010-2012. After six months of analysis, we decided the best fit was the combination of growth, inventory turns, operating margin, and Return on Invested Capital. Mondelez Performance Against the Food Group for 2010-2019.

Gartner 235
article thumbnail

AI This. Not So Fast.

Supply Chain Shaman

I find in my Supply Chains to Admire research that 96% of companies (when compared to their peer groups) are unable to drive improvement while delivering higher performance year-over-year on a balanced scorecard of growth, inventory turns, operating margin and Return on Invested Capital (ROIC). The term “AI” is overused.