Presentation Transcript

1. Lora Cecere Founder and CEO Supply Chain Insights Supply Chain Financial BenchmarkingAnswering the Question: What Is the Role of Supply Chain Effectiveness in Driving Corporate Performance?
2. Our Point of View: Definition of Supply Chain Excellence? Perform better than peer group Improve year-over-year results Align internally on metrics Deliver against the business strategy Demonstrate consistency in results Use innovation in supply chain processes Balance. Be leaders in managing trade-offs
3. The Supply Chain Effective Frontier
4. Ratios Considered
5. Household Products Supply Chain Financial BenchmarkingAnswering the Question:What Is the Role of Supply Chain Effectiveness in Driving Corporate Performance?
6. An Example of Benchmarking in Household Products
7. Household Products: Cash-to-Cash Cycle vs. Inventory Turns (2000-2012)
8. Household Products: Inventory Turns vs. Revenue per Employee (2002-2012)
9. Household Products: Inventory Turns vs. Operating Margin (2000-2012)
10. Household Products Comparison
11. Our Interpretation:Household Products Summary P&G has delivered a more balanced results performance with better year-over-year performance than Unilever. While P&G is 21% larger in revenue than Unilever, the average productivity is 48% higher. Sector operating margin has decreased in the last three years.
12. ChemicalSupply Chain Financial BenchmarkingAnswering the Question:What Is the Role of Supply Chain Effectiveness in Driving Corporate Performance?
13. An Example of Benchmarking for Two Chemical Companies
14. Chemical: Cash-to-Cash Cycle vs. Inventory Turns (2000-2012)
15. Chemical: Inventory Turns vs. Revenue per Employee (2002-2012)
16. Chemical: Inventory Turns vs. Operating Margin (2000-2012)
17. Chemical Comparison
18. Our Interpretation:Chemical Summary Chemical companies are less resilient than household products. Both companies struggled to maintain balance in the Great Recession. DuPont has been more resilient than Ashland. Ashland historically pushed more aggressive performance on supply chain cycles, but was not able to maintain these performance levels.
19. PharmaceuticalSupply Chain Financial BenchmarkingAnswering the Question:What Is the Role of Supply Chain Effectiveness in Driving Corporate Performance?
20. An Example of Benchmarking for Two Pharmaceutical Companies
21. Pharmaceutical: Cash-to-Cash Cycle vs. Inventory Turns (2000-2012)
22. Pharmaceutical:Inventory Turns vs. Revenue per Employee: (2002-2012)
23. Pharmaceutical: Inventory Turns vs. Operating Margin (2000-2012)
24. Pharmaceutical Comparison
25. Our Interpretation: Pharmaceutical Summary Bristol Myers Squibb has the most balanced performance of supply chain metrics in the pharmaceutical industry. Pharmaceutical company performance is less resilient than chemical companies.
26. High-tech & Electronics Supply Chain Financial BenchmarkingAnswering the Question:What Is the Role of Supply Chain Effectiveness in Driving Corporate Performance?
27. An Example of Benchmarking for Two High-tech & Electronics Companies
28. High-tech & Electronics: Cash-to-Cash Cycle vs. Inventory Turns (2000-2012)
29. High-tech & Electronics: Inventory Turns vs. Revenue per Employee (2002-2012)
30. High-tech & Electronics: Inventory Turns vs. Operating Margin (2000-2012)
31. High-tech & Electronics Comparison
32. Our Interpretation:High-tech & Electronics Summary The last decade for high-tech companies have been rough and turbulent. This has been to a greater degree than other industries. Seagate has outperformed Western Digital in their ability to balance supply chain financial ratios in a tough market.
33. Apparel Retail Supply Chain Financial BenchmarkingAnswering the Question:What Is the Role of Supply Chain Effectiveness in Driving Corporate Performance?
34. An Example of Benchmarking forTwo Apparel Retail Companies Note: Zara is a brand of Inditex
35. Apparel Retail: Cash-to-Cash Versus Inventory Turns 2001-2012
36. Apparel Retail: Inventory Turns vs. Revenue per Employee (2003-2012)
37. Apparel Retail: Inventory Turns vs. Operating Margin (2001-2012)
38. Apparel Retail Comparison
39. Our Interpretation:Apparel Retail Summary Both companies have outperformed their peer group in operating margin and under-performed in growth. At 1/20th the size of the supply chain leader Inditex (the parent company of Zara), Lululemon has balanced supply chain ratios showing year-over-year improvement.
40. Mass Merchant Retail Supply Chain Financial BenchmarkingAnswering the Question:What Is the Role of Supply Chain Effectiveness in Driving Corporate Performance?
41. An Example of Benchmarking for Two Mass Merchant Retail Companies
42. Mass Merchant Retail: Cash-to-Cash Cycle vs. Inventory Turns (2000-2012)
43. Mass Merchant Retail: Inventory Turns vs. Revenue per Employee (2003-2012)
44. Mass Merchant Retail: Inventory Turns vs. Operating Margin (2000-2012)
45. Mass Merchant Retail Comparison
46. Our Interpretation:Mass Merchant Retail Summary Each industry has a different pattern. Industry leaders have very tight patterns showing year-over-year improvement on a balanced portfolio of metrics. Leaders improve the potential of the supply chain and make conscious trade-offs.