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Inventory Management: We Can Do Better

Supply Chain Shaman

Downsizing inventories over the past decade crippled the response.” In Table 1, I share research collected for the Supply Chains to Admire analysis on the average days of inventory by industry across the period of 2004 to 2019 by increments to match economic shifts. Days of Inventory Peer Group Across Time Periods.

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Uh-Oh! Insights On How P&G Failed And What This Means For You

Supply Chain Shaman

At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. When we compare the results of P&G to its peer group for 2012-2021, P&G outperforms in inventory turns and margin but underperforms in growth and asset utilization. Was this by design? My reasoning?

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Q&A on the Supply Chains to Admire

Supply Chain Shaman

Nineteen of the 200 companies met the performance criteria of improving operating margin, inventory turns, and ROIC together in concert for the years of 2006-2013 or 2009-2013. However, due to a variety of factors, companies are losing ground on driving progress on both inventory turns and operating margin.

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Supply Chain Optimization for Consumer Packaged Goods Inventory

Logility

Managing consumer packaged goods inventory is challenging at the best of times, and it can be debilitating during times of local or international disruption. An advanced inventory planning and optimization solution allows these companies to set and maintain precise stock targets across a global network.

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Let the Qs Begin

Supply Chain Shaman

While the performance rankings were based on comparisons of inventory turns, operating margin and Return on Invested Capital (ROIC) for the periods of 2006-2013 and 2009-2013, the concept is that to be a supply chain leader you must outperform and drive improvement. We find that this is true of too few companies. Supply Chain Design.

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BASF: A Story of a Supply Chain Leader

Supply Chain Shaman

Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The The composite of metrics includes growth, operating margin, inventory turns and Return on Invested Capital.) Note in Figure 1 that BASF drove great improvement in the period of 2009-2013, but then slowed in 2014-2015.

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Supply chain risk management in 2017

Kinaxis

Maybe the one good thing to come out of it was some companies figured out how they could survive with lower inventories. In 2009, I’m sure most we’re thinking, “How much worse could it get?”. Inventories were stranded as supply chains scrambled to understand the impact on their customers. Some suppliers weren’t so lucky.