The document provides insights into the current performance and trends within various supply chain industries, emphasizing the need for data-driven approaches and understanding complex systems. It also highlights industry-specific operating margins and inventory turnover trends from 2006-2017. Additionally, it promotes an upcoming summit focused on supply chain excellence and innovative practices with registration details included.

1. A Look at Industry
Performance
For the Supply Chain Leader Who Wants to Rise Above

2. Supply Chain Insights LLC Copyright © 2018, p. 2
• Outside-in
• Synchronized (versus Integrated)
• Horizontal (versus Vertical) Process Excellence
• Data at the Speed of Business
• Data-Driven Insights
• Sensing before Response
What Is The Connected Supply Chain?

3. Supply Chain Insights LLC Copyright © 2018, p. 3
It Is Not…
Functional Excellence

4. Supply Chain Insights LLC Copyright © 2018, p. 4
Third Industrial Revolution Productivity Impact Stopped in
2004

5. Supply Chain Insights LLC Copyright © 2018, p. 5
Normal
Distribution
SKU/L
SalesVolume
Anything But Normal
The “Long Tail” Is Growing

6. Supply Chain Insights LLC Copyright © 2018, p. 6
Inventory Levels Growing

7. Supply Chain Insights LLC Copyright © 2018, p. 7
Customer Service
The Supply Chain Is a Complex System with
Increasing Complexity.

8. Supply Chain Insights LLC Copyright © 2018, p. 8
Unprecedented Commodity Pressures

9. Retail

10. Supply Chain Insights LLC Copyright © 2018, p. 10
[CELLRANGE]
[CELLRANGE]
5.5
6.0
6.5
7.0
7.5
0.055 0.060 0.065 0.070 0.075 0.080
InventoryTurns
Operating Margin
Retail Industry
Retail
0.07, 6.47
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Retail
Operating Margin vs. Inventory Turns (2006 – 2017)
Best Scenario

11. Consumer Value Chain

12. Supply Chain Insights LLC Copyright © 2018, p. 12
[CELLRANGE]
[CELLRANGE]
1.6
1.8
1.9
2.1
2.2
2.4
2.5
2.7
2.8
3.0
3.1
3.3
3.4
3.6
0.07 0.08 0.09 0.10 0.11 0.12 0.13
InventoryTurns
Operating Margin
Apparel Manufacturers
Apparel
Manufacturing
0.11, 3.02
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Apparel Manufacturers
Orbit Chart for Operating Margin vs. Inventory Turns (2006 – 2017)
Best Scenario

13. Supply Chain Insights LLC Copyright © 2018, p. 13
[CELLRANGE]
[CELLRANGE]
2.4
2.5
2.6
2.7
2.8
2.9
0.07 0.08 0.09 0.10 0.11 0.12
InventoryTurns
Operating Margin
Personal Products
Personal
Products
0.10, 2.64
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Personal Products
Operating Margin vs. Inventory Turns (2006 – 2017)
Best Scenario

14. Supply Chain Insights LLC Copyright © 2018, p. 14
[CELLRANGE] [CELLRANGE]
3.9
4.2
4.5
4.8
0.11 0.12 0.13 0.14 0.15 0.16 0.17 0.18 0.19
InventoryTurns
Operating Margin
Household Durable Products
Household
0.15, 4.53
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Household Durables/Consumer Products
Operating Margin vs. Inventory Turns (2006 – 2017)
Best Scenario

15. Supply Chain Insights LLC Copyright © 2018, p. 15
Food Industry
Operating Margin vs. Inventory Turns (2006 – 2017)
[CELLRANGE]
[CELLRANGE]
5.0
5.3
5.6
5.9
6.2
6.5
6.8
7.1
7.4
7.7
8.0
8.3
0.07 0.08 0.09 0.10 0.11 0.12
InventoryTurns
Operating Margin
Food Industry
Food
0.06, 6.90
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Best Scenario

16. Healthcare Value Chain

17. Supply Chain Insights LLC Copyright © 2018, p. 17
[CELLRANGE]
[CELLRANGE]
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3.0
0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20 0.22 0.24
InventoryTurns
Operating Margin
Pharmaceutical Industry
Pharma
0.15, 2.65
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Pharmaceutical
Operating Margin vs. Inventory Turns (2006 – 2017)
Best Scenario

18. Supply Chain Insights LLC Copyright © 2018, p. 18
[CELLRANGE]
[CELLRANGE]
2.8
3.1
3.4
0.10 0.11 0.12 0.13 0.14 0.15 0.16
InventoryTurns
Operating Margin
Medical Devices
Medical Device
0.13, 3.12
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Medical Device
Operating Margin vs. Inventory Turns (2006 – 2017)
Best Scenario

19. Automotive Value Chain

20. Supply Chain Insights LLC Copyright © 2018, p. 20
[CELLRANGE]
[CELLRANGE]
3.5
4.5
5.5
6.5
7.5
-0.21 -0.18 -0.15 -0.12 -0.09 -0.06 -0.03 0.00 0.03 0.06
InventoryTurns
Operating Margin
Automotive
Automotive
0.02, 6.33
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Automotive
Operating Margin vs. Inventory Turns (2006 – 2017)
Best Scenario

21. Supply Chain Insights LLC Copyright © 2018, p. 21
[CELLRANGE]
[CELLRANGE]
6.5
6.7
6.8
7.0
7.1
7.3
7.4
7.6
7.7
7.9
8.0
8.2
8.3
8.5
0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.10 0.11 0.12 0.13
InventoryTurns
Operating Margin
Automotive Parts
Auto Parts
0.09, 7.46
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Auto Parts
Orbit Charts Operating Margin vs. Inventory Turns (2006 – 2017)
Best Scenario

22. Industrial Value Chains

23. Supply Chain Insights LLC Copyright © 2018, p. 23
[CELLRANGE]
[CELLRANGE]
6.0
6.3
6.6
6.9
7.2
7.5
7.8
0.02 0.03 0.04 0.05
InventoryTurns
Operating Margin
Contract Manufacturers
Contract
Manufacturing
0.04, 6.85
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Contract Manufacturing
Operating Margin vs. Inventory Turns (2006 – 2017)
Best Scenario

24. Supply Chain Insights LLC Copyright © 2018, p. 24
[CELLRANGE]
[CELLRANGE]
5.0
5.5
6.0
6.5
7.0
0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.10 0.11 0.12
InventoryTurns
Operating Margin
Chemicals
Chemical
0.07, 5.81
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Chemical Industry
Orbit Chart Operating Margin vs. Inventory Turns (2006 – 2017)
Best Scenario

25. Supply Chain Insights LLC Copyright © 2018, p. 25
[CELLRANGE]
[CELLRANGE]
6.0
6.3
6.6
6.9
7.2
0.07 0.08 0.09 0.10 0.11
InventoryTurns
Operating Margin
Containers and Packaing
Containers and
Packaging
0.09, 6.71
Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2006-2017 from YCharts
Industrial Packaging
Operating Margin vs. Inventory Turns (2006 – 2017)
Best Scenario

26. Supply Chain Insights LLC Copyright © 2018, p. 26
Time to Take a Different Path?

28. Supply Chain Insights LLC Copyright © 2018, p. 28
About Lora Cecere
• Founder of Supply Chain Insights
• “LinkedIn Influencer”
• Guest blog for Forbes
• Author of 5 books: Bricks Matter (2012), Shaman’s Journal (2014),
Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015),
Shaman’s Journal (2016), Shaman’s Journal (2017)
• Partner at Altimeter Group (leader in open research)
• 7 years of Management Experience leading Analyst Teams at
Gartner
and AMR Research
• 8 years Experience in Marketing and Selling Supply Chain Software
at Descartes Systems Group and Manugistics (now JDA)
• 15 Years Leading teams in Manufacturing and Distribution
operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand
Ice Cream and Procter & Gamble.
Contact Information:
• Email: lora.cecere@supplychaininsights.com
• Blog: www.supplychainshaman.com (15,000 pageviews/month)
• Forbes: www.forbes.com/sites/loracecere
• Twitter: twitter.com/lcecere (8,700 followers)
• LinkedIn: www.linkedin.com/in/loracecere (255,000 followers)
• LinkedIn Influencer: www.linkedin.com/today/author/446631

29. Supply Chain Insights LLC Copyright © 2018, p. 29
Why You Should Come:
1.Hand-Picked Presentations and Keynote Speakers
2.Focus on Supply Chain Excellence, Digital
Transformation, Innovation Leadership and Talent
3.Breakout Sessions on Cognitive Computing / Machine
Learning, Blockchain / Bitcoin, & the Internet of Things
4.Extreme Networking and Facilitated Discussions
Register Now!
• Held at the Science History Institute in Philadelphia
• Seating is limited to 120 attendees
• Registration is $1750 for business users and $3000 for
technology providers, consultants, & 3PLs (invitation-only)
• $1000 for Day One attendance only
• Email us at events@supplychaininsights.com
www.SupplyChainInsightsGlobalSummit.com
Our sixth annual event  Designed for line-of-business leaders  Explore the future of business processes