Remove 2013 Remove Inventory Remove Metrics
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How Can You Improve Value in Your Supply Chain?

Supply Chain Shaman

In today’s architectures and functional metrics, value optimization does not exist. And, when procurement and tactical planning operate in isolation, there is no decision support framework to guide the trade-offs especially when the functions are tethered to different and conflicting metrics. You are right.

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Patterns Tell the Story of Supply Chain Excellence

Supply Chain Shaman

The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. The second part of the story is that inventory turns for Lenovo are 10.8, Ranking at #13, PepsiCo outperforms on inventory turns, but performance is declining. For the past decade, I have been studying these patterns.

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Trying to Push Content Above the Noise

Supply Chain Shaman

We talk about the move from functional metrics to a balanced scorecard, but we don’t use a balanced scorecard as an objective function. Orbit charts of four companies for the period of 2013-2022 at the intersection of operating margin and inventory turns. We speak of data latency, but do not measure the impact on performance.

Gartner 368
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Defining Supply Chain Excellence: One Column at a Time

Supply Chain Shaman

Instead, what I observed when I looked at the data, was that most companies that I had worked with (in my role as an industry analyst, I had worked with over 300) were going backwards on margin and inventory turns. Resiliency is the pattern at the intersection of operating margin and inventory turns. “Ugh,” I said.

Gartner 382
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Congrats to the Winners of the Supply Chains to Admire 2023

Supply Chain Shaman

An average margin of 21% with inventory turns of 1.58 Sanofi Performance Versus Peer Group for 2013-2022 Similarly, I find 35% of companies following the pack not able to drive resilience in the face of market shifts. The performance in 2022 is almost the same as that in 2013 (note the circular pattern). Challenge this paradigm.)

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Q&A on the Supply Chains to Admire

Supply Chain Shaman

The companies were selected based on performance better than peer group for 2006-2013 and delivering better than average improvement within the peer group as determined by the Supply Chain Index. 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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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.