Remove 2030 Remove Inventory Remove Metrics Remove Sourcing
article thumbnail

Holding Ourselves Accountable for Business Results

Supply Chain Shaman

Orbit Chart of Four Industry Sectors at the Intersection of Operating Margin and Inventory Turns (Year-over-Year Averages for the Sector). Lack of Focus on Form & Function of Inventory and Designing Network Flows. As supply chains moved from regional to global, intransit and cycle inventories increased. Maturity Model.

article thumbnail

Supply Chain Scope: New Study Shows Rise in US Inventories; California Estimated to Improve Freight Efficiency by 25% in 2030

Arkieva

A new study by the SupplyChainDigest analyzing the main components of working capital: Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payables Outstanding (DPO) revealed an uptick in DIO. Sustainable Freight Action Plan for California is estimated to Improve Freight Efficiency by 25% in 2030. Source: EBN.

Insiders

Sign Up for our Newsletter

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

article thumbnail

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.

article thumbnail

Announcing the Supply Chains to Admire for 2019

Supply Chain Shaman

The source data for the analysis comes from Ycharts.). It is not as simple as trading-off inventory, cost, and customer service. We selected these metrics based on correlation work with Arizona State University in 2012. The companies I work with struggle to set metrics targets. Click the link to see the detail.)

article thumbnail

My Lessons in Interviewing Supply Chains to Admire Award Winners

Supply Chain Shaman

To help, we analyze business results each year to understand which companies outperform on the balanced scorecard of growth, inventory turns, operating margin, and Return on Invested Capital (ROIC) over the past ten years. The processes of make, source, and deliver reports to a common leader in only 40% of businesses.

article thumbnail

Supply Chain Diagnostic: A Four-Step Process

Supply Chain Shaman

” Or alternatively, “Is there data that could be sourced to help?” 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. inventory turns.

article thumbnail

The Coffee Pot Conversation That Will Not Happen

Supply Chain Shaman

Companies entered the pandemic with twenty more days of inventory than at the beginning of the great recession. A balance sheet analysis shows that 95% of publicly traded manufacturers are stuck (when compared to peer group) at the intersection of growth and margin, margin and inventory turns, and Return on Invested Capital (ROIC) and growth.

Gartner 196