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Supply Chain Metrics That Mater - A Focus on Retail - 25 APR 2018


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Executive Summary
The last decade, with the evolution of e-commerce and the proliferation of differentiated retail formats, redefined shopping. In the process, power shifted from the traditional retailer to the consumer with a focus on value. Consumer insights and the translation of purchase to replenishment strategies defined success.
Over this same period, retail segments specialized, resulting in very different models. The more aggressive the alignment of the retail format the better the financial results. As will be seen in this report, as the segments proliferated the differences in performance in retail, they became more distinctive. Today, retail is not retail. Each retail segment has a very different pattern of financial results. Here we share the results of the Apparel, Broadline, Drug, Home Improvement and Food retailers for the period of 2010-2016.
Table 1. Industry Overview of Trends for the Period of 2010-2016

In general, retailers drove more improvement in supply chain fundamentals than manufacturers. While the industry talked about collaboration between retailers and manufacturers, there was more talk than actionable results. In this report, we take a detailed look at elements of the metrics portfolio, and then wrap up with insights on a cash-to-cash analysis to help the reader understand the retail segments.

Published in: Business
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