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A New Red Wagon?

Supply Chain Shaman

Last week, I spent time with large chemical companies engrossed in this discussion. Let’s take a look at the world of the chemical manufacturer. As shown in Figure 1, the company has been unable to maintain balance on the portfolio of cost and inventory. Acquisitions drove DOW Chemical’s wide swings.

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Elevating The Voice of the Supply Chain Contrarian

Supply Chain Shaman

Due to travel restrictions, I cannot attend many industry events, so I observe from home, watching webinars and remote broadcasts. One of my insights from doing the industry analysis for the Supply Chains to Admire each year is that smaller and less well-known companies outperform larger and better-known manufacturers.

Gartner 346
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Why I No Longer Believe in the Gartner Supply Chain Top 25

Supply Chain Shaman

The research tries to establish “ who did supply chain best ” by looking at a weighted formula of Year-over-Year Growth, Return on Assets (ROA), and Inventory Turns for the Fortune 500 companies. Inventory Turns values are based on an average of quarterly reporting for the past year. Inventory Turns is only part of the story.

Gartner 250
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Parts Are Not Parts

Supply Chain Shaman

A slight change within a function–in sourcing or manufacturing, or along the chain–can greatly impact the outcomes of cost, customer service, or working capital. Today’s supply chain—with greater outsourcing, global manufacturing, and complex bill of materials–requires synchronization of the links.

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The March of the Lemmings.

Supply Chain Shaman

Manufacturing companies are statistically less satisfied with their S&OP processes in 2019 than they were in 2016 at a 90% confidence level. A manufacturing company with annual revenues greater than 5B$ operates seven S&OP processes and is dependent on five technologies. Register for the webinar using this link. (We

S&OP 169
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How Do We Heal the Healthcare Value Network?

Supply Chain Shaman

Last week, at Supply Chain Insights , as part of our monthly webinar series, I hosted a panel discussion on the current state of the healthcare value network. Hosting this webinar series is one of the favorite parts of my job as the Founder of Supply Chain Insights. It is rising inventory levels. Current State: Costs are rising.

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Mush

Supply Chain Shaman

I just don’t think the comparison of very different industries in a spreadsheet based on growth, inventory values, and Return on Assets (ROA) is meaningful. Take the chemical industry. The reason is that as a chemical company, they must run assets, and the methodology penalizes companies with deep asset strategies.

Gartner 301