The Supply Chains to Admire analysis, now in its seventh year, is a data-driven methodology to analyze relative improvement and performance against sector peer groups. The data source is public balance sheet information for the period of 2010-2019. The analysis is for 440 public companies in 28 industry sectors. Only 4% of companies are outperforming their peer group while driving improvement at a faster rate than peers.
10. [CELLRANGE]
[CELLRANGE]
[CELLRANGE][CELLRANGE]
[CELLRANGE]
[CELLRANGE] [CELLRANGE]
[C…
[CELLRANGE]
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3.5
4.0
4.5
5.0
5.5
6.0
0.12 0.13 0.14 0.15 0.16
InventoryTurns
Operating Margin
Schneider Electric
SBGSY
0.14, 5.03
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2010-2019 from YCharts
Example: Orbit Chart for Schneider Electric
Operating Margin vs. Inventory Turns (2010 – 2019)
Best Scenario
Average results for the period of 2010-
2019 were 14% margin and 5.03
inventory turns.
Starting Point
Ending Point
11. [C…
[CELLRANGE]
[C…
[CELLRANGE]
[CELLRANGE][CELLRANGE] [CELLRANGE]
[C…
[C…
[C…
[CELLRANGE] [CELLRANGE] [CELLRANGE]
[C… [CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[C…
[CELLRANGE]
[CELLRANGE]
3.5
4.0
4.5
5.0
5.5
6.0
0.12 0.13 0.14 0.15 0.16
InventoryTurns
Operating Margin
Schneider Electric Diversified Industries
SBGSY
0.14, 5.03
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2010-2019 from YCharts
Diversified
Industries
0.14, 5.08
Schneider lags the industry sector for the
period of 2010-2013 making the push for
improvement in 2015. The creation of the
Supply Chain Strategy work by Annette
Clayton and the implementation by
Mourad Tamoud drove the turn around.
Industry Comparison: Schneider Electric Versus Diversified
Industry Averages
Operating Margin vs. Inventory Turns (2010 – 2019)
Best Scenario
14. 50%
50%
48%
35%
34%
31%
29%
25%
25%
24%
24%
22%
21%
18%
17%
16%
2%
Supply chain visibility
Cross-functional alignment
Demand and supply volatility
Ability to use data
Executive team understanding of the supply chain
Organizational change management
Availability of skilled people to do the job
Software usability
Increasing speed of business
Management of value network relationships
Innovation
Globalization
Product quality and supplier reliability
Risk management
Clarity of business strategy
Increasing regulations and compliance
Other
Top Five Elements of Business Pain for Respondents
Top
Elements
of Pain
14
Over the Decade, Same Problems With No Resolution
Source: Supply Chain Insights LLC, Sales & Operations Study (Mar-May, 2019)
Base: HAVE A S&OP PROCESS -- Total (n=107)
Q37. When it comes to doing your job, which of the following are your top 5 elements of business pain? Please select no more than five.
159. Comparison Gartner Top 25 Supply Chains to Admire™
Focus Fortune Global 500 and Forbes 2000
lists.
12$B minimum annual revenue.
(roughly 300 companies)
All public companies by analyzed by industry
peer groups. 440 companies by 28 peer
groups. No revenue minimum. There is no limit
on the number of winners peer group.
Likewise, there may be no winner by industry.
Analysis 2017-2019 2010-2019
Calculation 50% Opinion: (Equally split between
analyst and peer voting)
50% Quantitative Analysis:
• Revenue Growth (3-year weighted
average)-10%
• Inventory Turns (one-year
average)-5%
• Return on Physical Assets
(ROPA). Three-year weighted
average -15%
• Environmental, Social and
Governmental responsibility (3rd
party indexes)-15%
Improvement: Top 2/3 ranking on the Supply
Chain Index.
Performance: At or above the industry mean
for:
• Year-over-year revenue growth.
• Operating margin.
• Inventory turns.
• Return on Invested Capital (ROIC).
Value: At or above the mean for Price-to-
Tangible Book or Market Capitalization.
Index Calculations: https://www.slideshare.net/loracecere/sci-summit-2014-math-behind-sc-
index?qid=27326733-0325-4ee7-aacd-e2827bd216de&v=&b=&from_search=11
History 16th Year 7th Year
Methodology Comparison: Gartner Top 25 and Supply Chains to Admire
171. [CELLRANGE]
[C…
[CELLRANGE]
0.5
0.00 0.50
InventoryTurns
Operating Margin
British American Tobacco
BTAFF
0.35, 0.82
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2010-2019 from YCharts
British American Tobacco
Operating Margin vs. Inventory Turns (2010 – 2019)
Best Scenario
Company shown without peer group
due to the few players in the
industry