Provoking the Industry to Move Past Incrementalism
Supply Chain Shaman
JUNE 7, 2018
To make the argument, let’s look at industry orbit charts in aggregate for the period of 2006-2017 for the apparel and chemical companies. An orbit chart is a plotting of data at the intersection of two metrics. In this case, the metrics are operating margin and inventory turns. For apparel, it was the transition to cheaper labor in the Asian market. (In In the apparel industry 30-40% of the cost of goods is labor.) Definitions: Provocateur.