article thumbnail

How Can You Improve Value in Your Supply Chain?

Supply Chain Shaman

Compared to peer group performance for 2013-2023, 59% of the Gartner Top 25 score below their peer group on average revenue growth, 41% below inventory turns, and 41% below their sector on invested capital. The celebrated group is doing the best on the operating margin, where only 24% rank below their peer group.

article thumbnail

Patterns Tell the Story of Supply Chain Excellence

Supply Chain Shaman

By charting the performance against peer groups, I could see the story. The first step was to find a reliable data set and establish the peer groups. We purchase data from Y charts. (A The second step of establishing peer groups was trickier. There is no perfect methodology, and the peer group discussions continue.

Insiders

Sign Up for our Newsletter

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

article thumbnail

L’Oréal: A Case Study in Supply Chain Excellence

Supply Chain Shaman

The award, based on beating the industry peer group on rate of improvement on the key metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) while outperforming their peer group, is tough to achieve. L’Oréal’s Performance Compared to the Peer Group. We complete the analysis each year.

article thumbnail

Step Past AI Hype Drive Real Value

Supply Chain Shaman

Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. At this session, we will launch the “supply chain fundamental score” (a simple measurement to determine value generated by the supply chain as compared to the peer group). Drop me a DM on LinkedIn if you want to attend.

article thumbnail

Congrats to the Winners of the Supply Chains to Admire 2023

Supply Chain Shaman

How Do You Define Excellence? In retrospect, I find that technology is an enabler, but only if we are clear on what defines supply chain excellence. Many believe that an ex-supply chain exec knows the definition of supply chain excellence. As shown in Figure B, the Company outperforms their peer group but lacks resilience.

article thumbnail

Just Jump

Supply Chain Shaman

The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team. In my forty years of studying supply chain planning, the groups became larger, but with questionable results.

article thumbnail

Organizational Alignment: Overlooked, but So Important.

Supply Chain Shaman

” Followed by “How are you organized, and what defines functional excellence? And, how do you tie functional excellence to corporate value?” Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. This gap grew over the last decade.