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Asking the Right Questions Is The First Step To Drive Supply Chain Excellence

Supply Chain Shaman

Using balance sheet data from 2011 to 2019, we chart companies’ progress by peer group on rate of improvement and performance in the metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). Last week, I shared a preview of the results through a webinar broadcast.

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From the Barley in the Fields, to the Beer in Our Hands: Carlsberg’s Sustainability Journey

BlueYonder

In a recent webinar , Carlsberg shared more on this topic. Nearly all strategies put forward by organizations, including Carlsberg, come with a 2030 or 2040 asterisk. Connected Automation Automation is pivotal in addressing the speed aspect of sustainability goals. The former deadline isn’t far away. A prospect to raise a glass to.

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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 197
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Household Products Industry Stuck in Neutral and Going Backwards

Supply Chain Shaman

Both Kimberly-Clark and P&G are going backwards on operating margin while making progress on inventory turns. P&G’s rate of improvement on the Metrics That Matter was lower than the peer group. As the company spiraled in the updraft of the market, it built inventory. billion in inventory charges in April 2001.

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Is A Customer-Centric Strategy the Same as Demand-Driven? Outside-In?

Supply Chain Shaman

The focus is on channel data: price; inventory positions; and policies. It is about much, much more than Vendor Managed Inventory (VMI ) or Collaborative Forecasting and Replenishment. (The The use of customer segmentation to determine priority in matching inventory with orders during the order cycle. Channel Sensing.

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No Easter Bunny?

Supply Chain Shaman

Stuck at the intersection of operating margin and inventory turns, only 10% of companies are making progress. Unable to power additional year-over-year improvements at the intersection of cost and inventory, companies struggle. Short cycles require buffer inventories and short lead times. Let me explain. Responsive Supply Chain.

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Reduce Costs: Invest In Talent

Supply Chain Shaman

We analyzed the impact of 150 factors on 493 financial metrics for the period of 2004-2016. Across the industry, we find that companies think that they are managing costs and inventory better through technology investments like supply chain planning, but they have a false sense of accomplishment. This research was tough work.