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Supply Chains to Admire Analysis 2022_2022 presentation.pptx

The document analyzes the Supply Chains to Admire Award, focusing on 460 publicly-traded companies across various industries from 2012 to 2021, identifying 25 companies that excelled in supply chain performance. It highlights the methodology for evaluating supply chain excellence, emphasizing improvements in growth, operating margins, inventory turns, and return on invested capital. The findings aim to provide objective benchmarking for supply chain leaders to enhance organizational performance and financial understanding.

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Supply Chains to Admire RESEARCH 2022 Supply Chain Insights LLC Copyright © 2022 LORA CECERE, FOUNDER | lora.cecere@supplychaininsights.com
Introduction Supply Chain Insights LLC. Copyright © 2022 S E C T I O N 1 2
Supply Chain Insights LLC Copyright © 2022 1. A study of Supply Chain Excellence 2. 460 Publicly-Traded Companies in 28 Industry Sectors 3. Period of 2012-2021 4. Twenty-five companies outperform their peer groups. Introduction 3
Supply Chain Insights LLC Copyright © 2022 4 Now in its 9th year, the Supply Chains to Admire award analyzes public reporting for manufacturing and retail companies for the period of 2012-2021. The methodology evaluates companies against a peer group for improvement, value, and performance using the scorecard metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). Methodology Overview I N T R O D U C T I O N
5 Why the Supply Chains to Admire? Supply Chain Insights LLC. Copyright © 2022 1. The goal is to define an objective measurement of supply chain excellence for our research. 2. We want to share data to help supply chain leaders objectively benchmark and build balanced portfolios. 3. Our mission is to gain an understanding of how fast supply chain actions translate to balance sheet performance. 4. Together, we want to help supply chain leaders talk the language of finance, and to help finance teams understand what is possible in supply chain. 5. In summary, the goal is to build an objective standard that is data-driven.
6 What Is Supply Chain Excellence? Supply Chain Insights LLC. Copyright © 2022 Resilience Ability to drive consistent results year- over-year and weather market factors. Balance Organizational alignment on a balanced scorecard. Performance Outperforming industry peer group on the key metrics. Improvement Driving year-over-year improvement. Delivering Value A shift from cost to value.
A Balanced Scorecard Focused on Value 7 Supply Chain Insights LLC. Copyright © 2022
Rewarding Companies that Drive Improvement and Value while Outperforming Their Peers 8 Supply Chain Insights LLC. Copyright © 2022
Rewarding Companies that Drive Improvement and Value while Outperforming Their Peers 9 Supply Chain Insights LLC. Copyright © 2022 Supply Chain Index™: Measuring Improvement1 Driving Improvement at the Intersection of Inventory Turns and Operating Margin (A Vector Analysis) Driving Improvement at the Intersection of Growth and Return on Invested Capital (A Vector Analysis) Reliability of Results at the Intersection of Inventory Turns and Operating Margin (Tightness of the Pattern) The Supply Chain Index is a composite of three factors: strength, resiliency and balance. These are calculated based on orbit chart patterns. 1Source: https://www.slideshare.net/loracecere/launch-of-the-supply-chain-index-webinar-slide-deck Strength Resiliency Balance
The Challenges Supply Chain Insights LLC. Copyright © 2022 S E C T I O N 2 10
Growth: Market Turbulence 11 Supply Chain Insights LLC. Copyright © 2022
12 Mistakes Made Supply Chain Insights LLC. Copyright © 2022 1. Too many measurements. 2. A focus on functional performance. 3. Singular cost goals with a short-term focus. 4. Lack of awareness of industry performance (what is possible). 5. Confusion between financial reengineering and the delivery of value.
The Winners Supply Chain Insights LLC. Copyright © 2022 S E C T I O N 3 13
Supply Chains to Admire 2020: 22 Award Winners Retail (3) Process (5) Discrete (14) 14
Supply Chains to Admire 2021: Returning to the Winners Circle Retail (4) Process (4) Discrete (12) 15
16 Supply Chains to Admire 2021 Winners Retail (3) Process (4) Discrete (13)
17 Supply Chains to Admire Remaining in the Winners Circle for 2022 Retail (1) Process (2) Discrete (9)
Supply Chains to Admire 2022 Winners Retail (2) Process (5) Discrete (15)
Award Winner Summary 19 Supply Chain Insights LLC. Copyright © 2022
Looking at the Patterns Supply Chain Insights LLC. Copyright © 2022 S E C T I O N 4 20
Supply Chain Insights LLC. Copyright © 2022 21 4% of Companies Make the Winners Circle Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 Retail 2 6 6 4 9 5 3 3 2 Process 4 5 3 4 11 6 5 4 5 Discrete 6 12 7 16 11 14 14 13 15 Number ofSupplyChains to AdmireAward Winners
Supply Chain Insights LLC. Copyright © 2021 Process Industry Overview
Process Industries Overview 23 Supply Chain Insights LLC. Copyright © 2022 Average Revenue (M$) Year-over- Year Growth Inventory Turns Operating Margin Return on Invested Capital Price to Book Value Process Beverages 20 3,286 $ 0.4% 5.74 9.7% 6.3% 1.69 Chemical 37 12,165 $ 1.6% 4.21 10.6% 8.1% 2.61 Consumer Nondurables 11 18,618 $ 1.9% 4.76 16.5% 14.5% 28.75 Containers and Packaging 19 8,427 $ 5.4% 6.39 10.1% 7.1% 3.65 Food Manufacturing 31 17,725 $ 4.5% 6.27 9.8% 7.1% 2.95 Pharmaceuticals 32 28,322 $ 5.4% 2.24 21.2% 12.8% 6.21 Personal Products 14 9,068 $ 3.5% 2.76 11.2% 10.4% 4.13 Number of Companies Average for 2012-2021
Beverages Supply Chain Insights LLC. Copyright © 2021
• For 2022, Monster Beverages is the Supply Chains to Admire Award Winner. Beverage Overview Supply Chain Insights LLC. Copyright © 2022 2012 2019 2020 2021 Beverage Revenue Growth 8.6% 6.4% -0.5% 11.1% Operating Margin 0.17 0.18 0.16 0.17 Inventory Turns 5.63 5.19 4.93 4.82 ROIC 12.5% 9.7% 8.0% 9.0% Market Cap 30,484 48,339 49,751 53,418 Price to Book 3.55 5.09 5.71 5.18
Monster Beverage Operating Margin vs. Inventory Turns (2012 - 2021)
IMPROVEMENT NAME 2021 REVENUE SUPPLY CHAIN INDEX GROWTH (Year Over Year Revenue) INVENTORY TURNS OPERATING MARGIN RETURN ON INVESTED CAPITAL PRICE TO BOOK MARKET CAPITALIZATION Anheuser-Busch InBev 54,304 $ 7 3.8% 5.37 30.1% 5.6% 3.18 164,455 Boston Beer Co 2,058 $ 11 15.7% 7.39 13.4% 20.5% 7.28 4,117 Brown-Forman 3,461 $ 17 3.0% 0.91 32.2% 22.0% 12.49 23,346 Carlsberg 10,603 $ 13 -0.8% 7.42 14.3% 5.2% 2.34 17,492 Coca-Cola 38,655 $ 5 -1.5% 5.18 24.7% 10.9% 8.72 201,925 Davide Campari-Milano 2,571 $ 18 4.2% 1.00 19.9% 6.8% 4.33 9,641 Diageo 17,139 $ 15 1.1% 0.96 27.7% 12.4% 7.84 85,797 Heineken International 25,960 $ 7 3.2% 7.94 12.5% 6.5% 3.16 50,977 Keurig Dr Pepper 12,683 $ 1 8.7% 10.03 20.1% 10.1% 4.57 25,832 Kirin Holdings 16,602 $ 19 -4.1% 5.42 7.0% 5.2% 1.99 15,677 Lassonde Industries Inc 1,893 $ 13 10.1% 4.40 7.5% 7.7% 2.15 1,140 Molson Coors Brewing 10,280 $ 1 15.9% 9.71 12.2% 3.9% 1.32 13,149 Monster Beverage 5,541 $ 5 12.6% 5.47 31.6% 28.8% 9.30 29,001 PepsiCo 79,474 $ 12 1.9% 9.31 14.9% 14.2% 10.88 162,913 Primo Water Co 2,073 $ 4 1.7% 7.80 4.3% 1.2% 1.69 1,634 Remy Cointreau 1,179 $ 20 0.3% 0.34 19.8% 7.3% 3.01 4,826 Thai Beverage 7,687 $ 15 7.4% 3.64 13.9% 11.9% 3.62 12,923 Tsingtao Brewery 4,672 $ 3 3.0% 6.39 7.3% 10.3% 3.31 8,840 United Breweries 3,286 $ 9 8.0% 4.08 12.9% 11.3% 2.51 4,095 Yakult Honsha Co 3,638 $ 10 0.4% 5.74 9.7% 6.3% 1.69 5,404 MEAN WITH OUTLIERS 15,188 $ 4.7% 5.42 16.8% 10.4% 4.77 42,159 MEAN WITHOUT OUTLIERS 4.7% 5.42 16.8% 10.4% 4.77 18,464 INDUSTRY: Beverages COMPANY INFORMATION PERFORMANCE VALUE Time Period of 2012 - 2021
Chemical Industry Supply Chain Insights LLC. Copyright © 2022
• Celanese is the Supply Chains to Admire Award Winner for the second consecutive year. Chemical Overview Supply Chain Insights LLC. Copyright © 2022 2012 2019 2020 2021 Chemical Revenue Growth 4.0% -4.1% -3.9% 22.9% Operating Margin 0.11 0.11 0.07 0.14 Inventory Turns 5.47 4.62 4.34 4.25 ROIC 8% 7% 3% 12% Market Cap 9,116 15,077 16,060 19,249 Price to Book 1.89 2.89 3.03 3.33
Company 2012 2019 2020 2021 BASF Revenue Growth 9.5% -6.6% 1.7% 37.7% Operating Margin 0.09 0.07 0.01 0.10 Inventory Turns 5.14 3.87 4.14 4.47 ROIC 12.4% 14.0% -1.8% 9.7% Market Cap 87,255 68,757 72,303 64,404 Price to Book 2.68 1.48 1.74 1.39 Celanese Revenue Growth -5.1% -12.0% -10.2% 51.0% Operating Margin 0.03 0.16 0.13 0.23 Inventory Turns 7.37 4.52 4.46 3.84 ROIC 8.1% 12.4% 27.5% 23.4% Market Cap 7,109 14,720 14,835 18,154 Price to Book 4.11 5.87 4.21 4.33 DOW Revenue Growth -5.3% -31.7% -7.1% 16.1% Operating Margin 0.07 0.13 0.13 0.16 Inventory Turns 5.64 2.32 3.97 3.77 ROIC 2.7% 0.6% -5.2% 14.0% Market Cap 26,166 47,416 52,209 41,343 Price to Book 1.55 1.16 1.36 1.56 Chemical Industry
Celanese Operating Margin vs. Inventory Turns (2012 - 2021) Supply Chain Insights LLC. Copyright © 2021
IMPROVEMENT NAME 2021 REVENUE SUPPLY CHAIN INDEX GROWTH (Year Over Year Revenue) INVENTORY TURNS OPERATING MARGIN RETURN ON INVESTED CAPITAL PRICE TO BOOK MARKET CAPITALIZATION Air Products and Chemicals Inc 10,323 $ 8 1.3% 13.76 20.1% 10.5% 3.83 37,461 Akzo Nobel 11,343 $ 17 -4.7% 4.92 8.7% 10.2% 2.50 18,755 Albemarle Corp 3,328 $ 33 2.0% 3.54 18.5% 7.5% 3.09 10,439 Arkema SA 11,263 $ 32 3.6% 0.00 9.6% 7.2% 1.58 7,527 Asahi Kasei Corp 19,867 $ 29 1.2% 3.89 8.0% 7.1% 1.19 12,888 Ashland Global Holdings 2,111 $ 2 -9.2% 3.78 4.2% 2.2% 1.27 4,183 Axalta Coating Systems Ltd 4,416 $ 8 0.7% 4.97 8.9% 1.3% 4.26 5,364 BASF 92,996 $ 34 0.2% 4.55 9.0% 9.6% 2.12 78,870 Cabot 3,409 $ 19 2.3% 5.43 9.8% 3.1% 2.37 2,913 Celanese Corp 8,537 $ 12 3.8% 5.52 14.3% 15.4% 4.25 11,987 Chemours Co 6,345 $ 3 -1.5% 4.27 10.2% 7.6% 4.90 3,153 Covestro 18,816 $ 1 4.0% 4.54 9.3% 14.1% 1.30 7,632 Dow Inc 16,653 $ 7 -2.5% 4.22 9.3% 6.3% 1.46 51,419 Eastman Chemical 10,476 $ 23 4.3% 4.84 14.8% 8.4% 2.62 11,860 Ecolab 12,733 $ 8 8.4% 5.44 14.0% 6.7% 5.83 41,790 Evonik Industries 17,694 $ 35 -0.7% 5.01 9.7% 11.9% 0.77 7,457 FMC 5,045 $ 22 7.3% 2.58 15.7% 10.4% 4.29 9,442 Givaudan 7,313 $ 16 5.2% 3.14 16.3% 11.4% 6.23 23,169 H.B. Fuller 3,278 $ 20 9.3% 6.05 7.8% 5.5% 2.35 2,533 Huntsman Corp 8,453 $ 11 -1.4% 5.34 8.2% 8.5% 2.38 5,339 International Flavors & Fragrances 11,656 $ 24 19.5% 2.86 15.3% 9.8% 4.12 12,969 Johnson Matthey PLC 20,492 $ 17 3.7% 12.32 4.1% 11.3% 1.44 4,501 K+S 3,802 $ 24 -1.7% 3.84 9.5% 7.6% 0.97 4,526 Kansai Paint Co., Ltd 3,440 $ 27 2.9% 4.73 8.8% 6.2% 0.84 2,168 Koninklijke 10,890 $ 14 -1.1% 3.21 9.0% 7.5% 2.52 15,859 Lanxess 8,941 $ 37 -2.4% 4.19 7.2% 5.3% 1.41 4,209 LyondellBasell 46,173 $ 38 2.2% 6.95 13.5% 22.4% 4.20 35,586 Mitsui Chemicals Inc 11,430 $ 14 -2.8% 4.43 4.9% 3.3% 0.48 2,797 Nippon Kayaku 1,636 $ 12 -0.8% 2.33 11.5% 6.5% 0.40 740 Nitto Denko 7,182 $ 30 0.9% 5.78 11.6% 9.9% 1.07 5,936 PPG 16,802 $ 35 4.0% 4.56 11.4% 15.7% 5.27 28,566 RPM International Inc 6,106 $ 31 6.3% 4.32 10.4% 8.8% 4.88 6,981 Sensient Technologies 1,380 $ 6 -0.3% 2.15 12.0% 7.4% 3.09 2,900 Solvay 13,530 $ 26 3.6% 5.22 9.5% 3.1% 0.58 5,633 Stepan Company 2,346 $ 20 2.8% 8.15 7.2% 9.9% 2.41 1,773 Symrise AG 4,526 $ 4 7.5% 2.56 14.3% 8.5% 4.96 10,759 Wacker Chemie 5,359 $ 28 -2.4% 4.84 7.0% 4.7% 1.89 5,199 MEAN WITH OUTLIERS 12,165 $ 2.0% 4.82 10.6% 8.5% 2.68 13,656 MEAN WITHOUT OUTLIERS 1.6% 4.21 10.6% 8.1% 2.61 9,800 INDUSTRY: Chemical COMPANY INFORMATION PERFORMANCE VALUE Time Period of 2012 - 2021
Comparison Supply Chain Insights LLC. Copyright © 2022 37 The Supply C hains t o A dmire A nalysis C ompared t o The Ga rt ne r Top 2 5 f or 2 0 2 1
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. 480 companies by 28 peer groups. No revenue minimum for consideration. No limit on the number of winners by peer group. Likewise, there may be no winner by industry. Analysis 2018-2021 2012-2021 Calculation 50% Opinion: (Equally split between analyst and peer voting) 50% Quantitative Analysis:. 1, Return on Plant Assets (ROPA): ((2021 operating income / 2021 net property, plant, equipment + year-end inventory)) *50%) + ((2020 operating income / 2020 net property, plant, equipment + year-end inventory)) *30%) + ((2019 operating income / 2019 net property, plant, equipment + year-end inventory)) *20%). (15%) 2. Inventory (Average for 2019-2021) 5% 3. Revenue Growth: ((change in revenue 2021-2020) *50%) + ((change in revenue 2020-2019) *30%) + ((change in revenue 2019-2018) *20%). (10%) 4. ESG Component Score: Index of third-party environmental, social, and governance measures of commitment, transparency, and performance. (20%) 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 18th Year 9th Year Methodology Comparison: Gartner Top 25 and Supply Chains to Admire
Supply Chains to Admire Data-driven Comparison to Peer Group Long View 39 Comparison
Companies We Both Agree Are Winners Supply Chain Insights LLC. Copyright © 2022
41 Gartner Top 25 Comparison to Peer Group for 2012-2021 • 75% underperformed on growth • 29% underperformed on margin • 42% underperformed on inventory turns
Start by Defining Supply Chain Excellence Supply Chain Insights LLC Copyright © 2022 42
Supply Chain Insights LLC Copyright © 2022 01 There is no perfect method for determining supply chain excellence. Companies need to define their goals and align with strategy. 02 Business leaders’ perceptions of corporate performance are not in alignment with balance sheet results. Accountability is an opportunity. 03 Only 4% of companies outperform their peer groups. Peer analysis matters. Insights 43
Join the Guiding Coalition for Change. Imagine the Supply Chain of the Future with Peers. Register for the Supply Chain Insights Global Summit. www.supplychaininsightsglobalsummit.com
Supply Chain Insights LLC. Copyright © 2022 Founded in February 2012 by Lora Cecere, Supply Chain Insights LLC is in its eighth year of operation. The Company's mission is to deliver independent, actionable, and objective advice for supply chain leaders. Our goal is to help leaders understand supply chain trends, evolving technologies, and which metrics matter. 45
46 2 years Partner at Altimeter Group (leader in open research) 8 years Gartner and AMR Research 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA/Blue Yonder) Supply Chain Insights LLC Copyright © 2021 Who Is Lora? Founder of Supply Chain Insights “LinkedIn Influencer”, Guest blogger for Forbes, Author: Bricks Matter (2012), Supply Chain Metrics That Matter (2014), and Shaman’s Journal (2014-19) 15 Years Leading Teams in Manufacturing and Distribution for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.
Thank You… Supply Chain Insights LLC Copyright © 2022 LORA CECERE, FOUNDER | lora.cecere@supplychaininsights.com

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Supply Chains to Admire Analysis 2022_2022 presentation.pptx

  • 1.
    Supply Chains toAdmire RESEARCH 2022 Supply Chain Insights LLC Copyright © 2022 LORA CECERE, FOUNDER | lora.cecere@supplychaininsights.com
  • 2.
    Introduction Supply Chain InsightsLLC. Copyright © 2022 S E C T I O N 1 2
  • 3.
    Supply Chain InsightsLLC Copyright © 2022 1. A study of Supply Chain Excellence 2. 460 Publicly-Traded Companies in 28 Industry Sectors 3. Period of 2012-2021 4. Twenty-five companies outperform their peer groups. Introduction 3
  • 4.
    Supply Chain InsightsLLC Copyright © 2022 4 Now in its 9th year, the Supply Chains to Admire award analyzes public reporting for manufacturing and retail companies for the period of 2012-2021. The methodology evaluates companies against a peer group for improvement, value, and performance using the scorecard metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC). Methodology Overview I N T R O D U C T I O N
  • 5.
    5 Why the Supply Chains to Admire? SupplyChain Insights LLC. Copyright © 2022 1. The goal is to define an objective measurement of supply chain excellence for our research. 2. We want to share data to help supply chain leaders objectively benchmark and build balanced portfolios. 3. Our mission is to gain an understanding of how fast supply chain actions translate to balance sheet performance. 4. Together, we want to help supply chain leaders talk the language of finance, and to help finance teams understand what is possible in supply chain. 5. In summary, the goal is to build an objective standard that is data-driven.
  • 6.
    6 What Is Supply Chain Excellence? SupplyChain Insights LLC. Copyright © 2022 Resilience Ability to drive consistent results year- over-year and weather market factors. Balance Organizational alignment on a balanced scorecard. Performance Outperforming industry peer group on the key metrics. Improvement Driving year-over-year improvement. Delivering Value A shift from cost to value.
  • 7.
    A Balanced Scorecard Focused onValue 7 Supply Chain Insights LLC. Copyright © 2022
  • 8.
    Rewarding Companies that DriveImprovement and Value while Outperforming Their Peers 8 Supply Chain Insights LLC. Copyright © 2022
  • 9.
    Rewarding Companies that Drive Improvement andValue while Outperforming Their Peers 9 Supply Chain Insights LLC. Copyright © 2022 Supply Chain Index™: Measuring Improvement1 Driving Improvement at the Intersection of Inventory Turns and Operating Margin (A Vector Analysis) Driving Improvement at the Intersection of Growth and Return on Invested Capital (A Vector Analysis) Reliability of Results at the Intersection of Inventory Turns and Operating Margin (Tightness of the Pattern) The Supply Chain Index is a composite of three factors: strength, resiliency and balance. These are calculated based on orbit chart patterns. 1Source: https://www.slideshare.net/loracecere/launch-of-the-supply-chain-index-webinar-slide-deck Strength Resiliency Balance
  • 10.
    The Challenges Supply ChainInsights LLC. Copyright © 2022 S E C T I O N 2 10
  • 11.
    Growth: Market Turbulence 11 Supply ChainInsights LLC. Copyright © 2022
  • 12.
    12 Mistakes Made Supply Chain InsightsLLC. Copyright © 2022 1. Too many measurements. 2. A focus on functional performance. 3. Singular cost goals with a short-term focus. 4. Lack of awareness of industry performance (what is possible). 5. Confusion between financial reengineering and the delivery of value.
  • 13.
    The Winners Supply ChainInsights LLC. Copyright © 2022 S E C T I O N 3 13
  • 14.
    Supply Chains toAdmire 2020: 22 Award Winners Retail (3) Process (5) Discrete (14) 14
  • 15.
    Supply Chains toAdmire 2021: Returning to the Winners Circle Retail (4) Process (4) Discrete (12) 15
  • 16.
    16 Supply Chains toAdmire 2021 Winners Retail (3) Process (4) Discrete (13)
  • 17.
    17 Supply Chains toAdmire Remaining in the Winners Circle for 2022 Retail (1) Process (2) Discrete (9)
  • 18.
    Supply Chains toAdmire 2022 Winners Retail (2) Process (5) Discrete (15)
  • 19.
    Award Winner Summary 19 SupplyChain Insights LLC. Copyright © 2022
  • 20.
    Looking at thePatterns Supply Chain Insights LLC. Copyright © 2022 S E C T I O N 4 20
  • 21.
    Supply Chain InsightsLLC. Copyright © 2022 21 4% of Companies Make the Winners Circle Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 Retail 2 6 6 4 9 5 3 3 2 Process 4 5 3 4 11 6 5 4 5 Discrete 6 12 7 16 11 14 14 13 15 Number ofSupplyChains to AdmireAward Winners
  • 22.
    Supply Chain InsightsLLC. Copyright © 2021 Process Industry Overview
  • 23.
    Process Industries Overview 23 SupplyChain Insights LLC. Copyright © 2022 Average Revenue (M$) Year-over- Year Growth Inventory Turns Operating Margin Return on Invested Capital Price to Book Value Process Beverages 20 3,286 $ 0.4% 5.74 9.7% 6.3% 1.69 Chemical 37 12,165 $ 1.6% 4.21 10.6% 8.1% 2.61 Consumer Nondurables 11 18,618 $ 1.9% 4.76 16.5% 14.5% 28.75 Containers and Packaging 19 8,427 $ 5.4% 6.39 10.1% 7.1% 3.65 Food Manufacturing 31 17,725 $ 4.5% 6.27 9.8% 7.1% 2.95 Pharmaceuticals 32 28,322 $ 5.4% 2.24 21.2% 12.8% 6.21 Personal Products 14 9,068 $ 3.5% 2.76 11.2% 10.4% 4.13 Number of Companies Average for 2012-2021
  • 24.
    Beverages Supply Chain InsightsLLC. Copyright © 2021
  • 25.
    • For 2022,Monster Beverages is the Supply Chains to Admire Award Winner. Beverage Overview Supply Chain Insights LLC. Copyright © 2022 2012 2019 2020 2021 Beverage Revenue Growth 8.6% 6.4% -0.5% 11.1% Operating Margin 0.17 0.18 0.16 0.17 Inventory Turns 5.63 5.19 4.93 4.82 ROIC 12.5% 9.7% 8.0% 9.0% Market Cap 30,484 48,339 49,751 53,418 Price to Book 3.55 5.09 5.71 5.18
  • 26.
    Monster Beverage OperatingMargin vs. Inventory Turns (2012 - 2021)
  • 27.
    IMPROVEMENT NAME 2021 REVENUE SUPPLY CHAIN INDEX GROWTH (Year OverYear Revenue) INVENTORY TURNS OPERATING MARGIN RETURN ON INVESTED CAPITAL PRICE TO BOOK MARKET CAPITALIZATION Anheuser-Busch InBev 54,304 $ 7 3.8% 5.37 30.1% 5.6% 3.18 164,455 Boston Beer Co 2,058 $ 11 15.7% 7.39 13.4% 20.5% 7.28 4,117 Brown-Forman 3,461 $ 17 3.0% 0.91 32.2% 22.0% 12.49 23,346 Carlsberg 10,603 $ 13 -0.8% 7.42 14.3% 5.2% 2.34 17,492 Coca-Cola 38,655 $ 5 -1.5% 5.18 24.7% 10.9% 8.72 201,925 Davide Campari-Milano 2,571 $ 18 4.2% 1.00 19.9% 6.8% 4.33 9,641 Diageo 17,139 $ 15 1.1% 0.96 27.7% 12.4% 7.84 85,797 Heineken International 25,960 $ 7 3.2% 7.94 12.5% 6.5% 3.16 50,977 Keurig Dr Pepper 12,683 $ 1 8.7% 10.03 20.1% 10.1% 4.57 25,832 Kirin Holdings 16,602 $ 19 -4.1% 5.42 7.0% 5.2% 1.99 15,677 Lassonde Industries Inc 1,893 $ 13 10.1% 4.40 7.5% 7.7% 2.15 1,140 Molson Coors Brewing 10,280 $ 1 15.9% 9.71 12.2% 3.9% 1.32 13,149 Monster Beverage 5,541 $ 5 12.6% 5.47 31.6% 28.8% 9.30 29,001 PepsiCo 79,474 $ 12 1.9% 9.31 14.9% 14.2% 10.88 162,913 Primo Water Co 2,073 $ 4 1.7% 7.80 4.3% 1.2% 1.69 1,634 Remy Cointreau 1,179 $ 20 0.3% 0.34 19.8% 7.3% 3.01 4,826 Thai Beverage 7,687 $ 15 7.4% 3.64 13.9% 11.9% 3.62 12,923 Tsingtao Brewery 4,672 $ 3 3.0% 6.39 7.3% 10.3% 3.31 8,840 United Breweries 3,286 $ 9 8.0% 4.08 12.9% 11.3% 2.51 4,095 Yakult Honsha Co 3,638 $ 10 0.4% 5.74 9.7% 6.3% 1.69 5,404 MEAN WITH OUTLIERS 15,188 $ 4.7% 5.42 16.8% 10.4% 4.77 42,159 MEAN WITHOUT OUTLIERS 4.7% 5.42 16.8% 10.4% 4.77 18,464 INDUSTRY: Beverages COMPANY INFORMATION PERFORMANCE VALUE Time Period of 2012 - 2021
  • 28.
    Chemical Industry Supply ChainInsights LLC. Copyright © 2022
  • 29.
    • Celanese isthe Supply Chains to Admire Award Winner for the second consecutive year. Chemical Overview Supply Chain Insights LLC. Copyright © 2022 2012 2019 2020 2021 Chemical Revenue Growth 4.0% -4.1% -3.9% 22.9% Operating Margin 0.11 0.11 0.07 0.14 Inventory Turns 5.47 4.62 4.34 4.25 ROIC 8% 7% 3% 12% Market Cap 9,116 15,077 16,060 19,249 Price to Book 1.89 2.89 3.03 3.33
  • 30.
    Company 2012 20192020 2021 BASF Revenue Growth 9.5% -6.6% 1.7% 37.7% Operating Margin 0.09 0.07 0.01 0.10 Inventory Turns 5.14 3.87 4.14 4.47 ROIC 12.4% 14.0% -1.8% 9.7% Market Cap 87,255 68,757 72,303 64,404 Price to Book 2.68 1.48 1.74 1.39 Celanese Revenue Growth -5.1% -12.0% -10.2% 51.0% Operating Margin 0.03 0.16 0.13 0.23 Inventory Turns 7.37 4.52 4.46 3.84 ROIC 8.1% 12.4% 27.5% 23.4% Market Cap 7,109 14,720 14,835 18,154 Price to Book 4.11 5.87 4.21 4.33 DOW Revenue Growth -5.3% -31.7% -7.1% 16.1% Operating Margin 0.07 0.13 0.13 0.16 Inventory Turns 5.64 2.32 3.97 3.77 ROIC 2.7% 0.6% -5.2% 14.0% Market Cap 26,166 47,416 52,209 41,343 Price to Book 1.55 1.16 1.36 1.56 Chemical Industry
  • 31.
    Celanese Operating Marginvs. Inventory Turns (2012 - 2021) Supply Chain Insights LLC. Copyright © 2021
  • 32.
    IMPROVEMENT NAME 2021 REVENUE SUPPLY CHAIN INDEX GROWTH (Year OverYear Revenue) INVENTORY TURNS OPERATING MARGIN RETURN ON INVESTED CAPITAL PRICE TO BOOK MARKET CAPITALIZATION Air Products and Chemicals Inc 10,323 $ 8 1.3% 13.76 20.1% 10.5% 3.83 37,461 Akzo Nobel 11,343 $ 17 -4.7% 4.92 8.7% 10.2% 2.50 18,755 Albemarle Corp 3,328 $ 33 2.0% 3.54 18.5% 7.5% 3.09 10,439 Arkema SA 11,263 $ 32 3.6% 0.00 9.6% 7.2% 1.58 7,527 Asahi Kasei Corp 19,867 $ 29 1.2% 3.89 8.0% 7.1% 1.19 12,888 Ashland Global Holdings 2,111 $ 2 -9.2% 3.78 4.2% 2.2% 1.27 4,183 Axalta Coating Systems Ltd 4,416 $ 8 0.7% 4.97 8.9% 1.3% 4.26 5,364 BASF 92,996 $ 34 0.2% 4.55 9.0% 9.6% 2.12 78,870 Cabot 3,409 $ 19 2.3% 5.43 9.8% 3.1% 2.37 2,913 Celanese Corp 8,537 $ 12 3.8% 5.52 14.3% 15.4% 4.25 11,987 Chemours Co 6,345 $ 3 -1.5% 4.27 10.2% 7.6% 4.90 3,153 Covestro 18,816 $ 1 4.0% 4.54 9.3% 14.1% 1.30 7,632 Dow Inc 16,653 $ 7 -2.5% 4.22 9.3% 6.3% 1.46 51,419 Eastman Chemical 10,476 $ 23 4.3% 4.84 14.8% 8.4% 2.62 11,860 Ecolab 12,733 $ 8 8.4% 5.44 14.0% 6.7% 5.83 41,790 Evonik Industries 17,694 $ 35 -0.7% 5.01 9.7% 11.9% 0.77 7,457 FMC 5,045 $ 22 7.3% 2.58 15.7% 10.4% 4.29 9,442 Givaudan 7,313 $ 16 5.2% 3.14 16.3% 11.4% 6.23 23,169 H.B. Fuller 3,278 $ 20 9.3% 6.05 7.8% 5.5% 2.35 2,533 Huntsman Corp 8,453 $ 11 -1.4% 5.34 8.2% 8.5% 2.38 5,339 International Flavors & Fragrances 11,656 $ 24 19.5% 2.86 15.3% 9.8% 4.12 12,969 Johnson Matthey PLC 20,492 $ 17 3.7% 12.32 4.1% 11.3% 1.44 4,501 K+S 3,802 $ 24 -1.7% 3.84 9.5% 7.6% 0.97 4,526 Kansai Paint Co., Ltd 3,440 $ 27 2.9% 4.73 8.8% 6.2% 0.84 2,168 Koninklijke 10,890 $ 14 -1.1% 3.21 9.0% 7.5% 2.52 15,859 Lanxess 8,941 $ 37 -2.4% 4.19 7.2% 5.3% 1.41 4,209 LyondellBasell 46,173 $ 38 2.2% 6.95 13.5% 22.4% 4.20 35,586 Mitsui Chemicals Inc 11,430 $ 14 -2.8% 4.43 4.9% 3.3% 0.48 2,797 Nippon Kayaku 1,636 $ 12 -0.8% 2.33 11.5% 6.5% 0.40 740 Nitto Denko 7,182 $ 30 0.9% 5.78 11.6% 9.9% 1.07 5,936 PPG 16,802 $ 35 4.0% 4.56 11.4% 15.7% 5.27 28,566 RPM International Inc 6,106 $ 31 6.3% 4.32 10.4% 8.8% 4.88 6,981 Sensient Technologies 1,380 $ 6 -0.3% 2.15 12.0% 7.4% 3.09 2,900 Solvay 13,530 $ 26 3.6% 5.22 9.5% 3.1% 0.58 5,633 Stepan Company 2,346 $ 20 2.8% 8.15 7.2% 9.9% 2.41 1,773 Symrise AG 4,526 $ 4 7.5% 2.56 14.3% 8.5% 4.96 10,759 Wacker Chemie 5,359 $ 28 -2.4% 4.84 7.0% 4.7% 1.89 5,199 MEAN WITH OUTLIERS 12,165 $ 2.0% 4.82 10.6% 8.5% 2.68 13,656 MEAN WITHOUT OUTLIERS 1.6% 4.21 10.6% 8.1% 2.61 9,800 INDUSTRY: Chemical COMPANY INFORMATION PERFORMANCE VALUE Time Period of 2012 - 2021
  • 33.
    Comparison Supply Chain InsightsLLC. Copyright © 2022 37 The Supply C hains t o A dmire A nalysis C ompared t o The Ga rt ne r Top 2 5 f or 2 0 2 1
  • 34.
    Comparison Gartner Top25 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. 480 companies by 28 peer groups. No revenue minimum for consideration. No limit on the number of winners by peer group. Likewise, there may be no winner by industry. Analysis 2018-2021 2012-2021 Calculation 50% Opinion: (Equally split between analyst and peer voting) 50% Quantitative Analysis:. 1, Return on Plant Assets (ROPA): ((2021 operating income / 2021 net property, plant, equipment + year-end inventory)) *50%) + ((2020 operating income / 2020 net property, plant, equipment + year-end inventory)) *30%) + ((2019 operating income / 2019 net property, plant, equipment + year-end inventory)) *20%). (15%) 2. Inventory (Average for 2019-2021) 5% 3. Revenue Growth: ((change in revenue 2021-2020) *50%) + ((change in revenue 2020-2019) *30%) + ((change in revenue 2019-2018) *20%). (10%) 4. ESG Component Score: Index of third-party environmental, social, and governance measures of commitment, transparency, and performance. (20%) 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 18th Year 9th Year Methodology Comparison: Gartner Top 25 and Supply Chains to Admire
  • 35.
    Supply Chains toAdmire Data-driven Comparison to Peer Group Long View 39 Comparison
  • 36.
    Companies We Both AgreeAre Winners Supply Chain Insights LLC. Copyright © 2022
  • 37.
    41 Gartner Top 25 Comparisonto Peer Group for 2012-2021 • 75% underperformed on growth • 29% underperformed on margin • 42% underperformed on inventory turns
  • 38.
    Start by Defining SupplyChain Excellence Supply Chain Insights LLC Copyright © 2022 42
  • 39.
    Supply Chain InsightsLLC Copyright © 2022 01 There is no perfect method for determining supply chain excellence. Companies need to define their goals and align with strategy. 02 Business leaders’ perceptions of corporate performance are not in alignment with balance sheet results. Accountability is an opportunity. 03 Only 4% of companies outperform their peer groups. Peer analysis matters. Insights 43
  • 40.
    Join the GuidingCoalition for Change. Imagine the Supply Chain of the Future with Peers. Register for the Supply Chain Insights Global Summit. www.supplychaininsightsglobalsummit.com
  • 41.
    Supply Chain InsightsLLC. Copyright © 2022 Founded in February 2012 by Lora Cecere, Supply Chain Insights LLC is in its eighth year of operation. The Company's mission is to deliver independent, actionable, and objective advice for supply chain leaders. Our goal is to help leaders understand supply chain trends, evolving technologies, and which metrics matter. 45
  • 42.
    46 2 years Partnerat Altimeter Group (leader in open research) 8 years Gartner and AMR Research 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA/Blue Yonder) Supply Chain Insights LLC Copyright © 2021 Who Is Lora? Founder of Supply Chain Insights “LinkedIn Influencer”, Guest blogger for Forbes, Author: Bricks Matter (2012), Supply Chain Metrics That Matter (2014), and Shaman’s Journal (2014-19) 15 Years Leading Teams in Manufacturing and Distribution for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.
  • 43.
    Thank You… Supply ChainInsights LLC Copyright © 2022 LORA CECERE, FOUNDER | lora.cecere@supplychaininsights.com