What is supply chain excellence? In this powerpoint, we analyze and compare two methodologies--The Supply Chains to Admire by Supply Chain Insights and the Gartner Top 25. There is no perfect method: both give insights. Note the differences in industry sectors and the gap in business leader perceptions when compared to corporate performance.
2. 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
14. 2010
2011
2019
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