Supply Chains to Admire Industry Patterns RESEARCH 2025
Supply Chain Insights LLC Copyright © 2025
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Supply Chain Insights LLC. Copyright © 2025
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Relationship of Supply Chain Metrics to Market Capitalization/Employee
Linear regression results. Work over two years with Georgia Tech .
Supply Chain Insights LLC. Copyright © 2025
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What Is Industry Potential? Shifts 2025-2024 54% of industries decline on operating margin, 82% decline on inventory, 40% down on growth, and 86% decline on ROCE
Operating Margin
Inventory Turns
Annual Growth
Return on Capital Employed
Difference from 2024 - 2015
Industry
2015 2024 Difference from 2024 - 2015 2015 2024
2015 2024 Difference from 2024 - 2015 2015 2024 Difference from 2024 - 2015
0.11 0.08 12.00 11.00 0.06 0.08 0.11 0.09 0.17 0.17 -0.10 -0.04 0.11 0.10 0.04 0.06 0.15 0.16 0.09 0.10 0.05 0.04 0.09 0.08 0.14 0.14 0.17 0.15 0.00 0.13 0.12 0.08 0.21 0.21 0.14 0.15 0.15 0.08 0.10 0.08 0.07 0.06 0.07 0.04 0.02 0.03 0.09 0.08 0.01 0.01 0.12 0.11 0.14 0.12 0.11 0.07 0.07 0.11
-0.03 -1.00 0.02 -0.02 0.00 0.06 -0.01 0.02 0.01 0.01 -0.01 -0.01 0.00 -0.02 0.13 -0.04 0.00 0.01 -0.07 -0.02 -0.01 -0.03 0.01 -0.01 0.00 -0.01 -0.02 -0.04 0.04
5.41 6.91 3.15 2.86 7.43 5.93 7.73 6.45 6.01 4.60 0.11 0.09 5.96 5.05 5.82 4.71 4.50 4.04 8.54 6.96 5.86 4.43 4.49 3.95 4.81 4.48 2.87 2.44 25.05 7.69 2.66 2.46 2.17 2.11 81.03 87.23 1.75 8.11 4.36 4.06 5.09 5.54 5.52 7.65 13.01 12.34 6.24 7.86 7.48 7.43 11.41 10.25 4.42 3.64 7.71 6.95 3.92 4.29
1.50 -0.29 -1.50 -1.28 -1.41 -0.02 -0.91 -1.11 -0.46 -1.58 -1.43 -0.54 -0.33 -0.43
-0.01 0.11 0.03 0.02 0.00 0.07 0.01 0.01 -4.60 0.00 5.43 4.43 -0.04 0.04 0.09 -0.04 -0.04 0.03 0.04 0.00 -0.01 -0.08 -0.07 -0.02 -0.03 0.00 0.01 0.05 -0.28 0.01 -0.08 -0.01 0.02 0.08 0.23 0.05 0.15 0.01 0.04 0.02 0.04 0.00 0.06 0.05 0.03 0.02 0.09 -0.03 0.01 0.01 -0.05 -0.04 0.08 0.05 -0.06 -0.04 0.11 -0.02
0.12 -0.01 0.07 0.00 4.60 -1.00 0.08 -0.13 0.07 -0.04 -0.07 0.05 0.03 0.04 0.29 0.07 0.06 -0.18 -0.14 -0.02 -0.04 -0.01 -0.01 -0.12 0.00 0.01 -0.03 0.02 -0.13
10.00 7.00 0.19 0.14 0.10 0.11 0.15 0.11 0.14 0.13 0.10 0.07 0.12 0.09 0.06 0.09 0.14 0.13 0.12 0.10 0.17 0.06 0.12 0.09 0.17 0.14 0.11 0.09 -0.08 0.07 0.15 0.09 0.19 0.13 0.26 0.25 0.11 -0.11 0.22 0.15 0.22 0.15 0.20 0.08 0.11 0.07 0.21 0.24 0.09 0.07 0.13 0.11 0.11 0.08 0.08 0.02 0.09 0.15
-3.00 -0.05 0.01 -0.04 -0.01 -0.03 -0.03 0.03 -0.01 -0.02 -0.11 -0.03 -0.03 -0.02 0.15 -0.06 -0.06 -0.01 -0.22 -0.07 -0.07 -0.12 -0.04 0.03 -0.02 -0.02 -0.03 -0.06 0.06
Aerospacen & Defense Apparel Manufacturers
Automotive
Automotive Aftermarket
Beverage Chemical
Container & Packaging Conract Manufacturers Diversified Indsustries
Food
Furniture
Durable Household
Non-Durable Household
Medical Device
-17.36
Oil & Gas
-0.20 -0.06 6.20 6.36 -0.30 0.45 2.13 -0.67 1.62 -0.05 -1.16 -0.78 -0.76 0.37
Personal Products Pharmaceuticals
Restaurants Ecommerce
Retail Apparel Retail Broadline
Retail Drugs Retail Food
Retail Home Improvement
B2B Technology
Telecommunications
Semiconductors
Tires
Trucks & Heavy Equipment
Supply Chain Insights LLC. Copyright © 2025
Retail
Retail Apparel Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
4.50
2020
2017
2015
2019
2016
Pharma 0.08, 4:17
2018
2024
2022
4.00
2021
2023
3.50
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
0.11
0.12
Operating Margin Retail Apparel Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 6
Retail Drug Industry Operating Margin vs. Inventory Turns (2015 - 2024)
8.00
Best Scenario
2023
2024
7.50
2020
7.00
2022
2021
6.50
2019
Retail Broadline 0.06, 5.37
6.00
2018
2017
2015
5.50
2016
5.00
0.03
0.04
0.05
0.06
0.07
0.08
Operating Margin Retail Drug Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 7
Retail Food Industry-Grocery Operating Margin vs. Inventory Turns (2015 - 2024)
13.50
Best Scenario
2016
2015
13.00
2020
2022
2021
Retail Food 0.03,12.51
12.50
2024
2023
2018
2019
2017
12.00
0.01
0.02
0.03
0.04
0.05
Operating Margin Retail Food Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 8
Retail Home Improvement Stores Operating Margin vs. Inventory Turns (2015 - 2024)
8.00
Best Scenario
2024
2023
7.50
7.00
2016
2017
6.50
Retail Home improvement 0.08,5.83
2015
6.00
5.50
2020
2019
5.00
2018
2021
4.50
2022
4.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
0.11
Operating Margin Retail Home Improvement Industry ◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 9
Restaurants Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
103.00
2019
98.00
93.00
2020
2018
Restaurant 0.15, 84.42
88.00
2024
2023
2016
83.00
2015
2021
78.00
2017
2022
73.00
0.09
0.10
0.11
0.12
0.13
0.14
0.15
0.16
0.17
Operating Margin Restaurant Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 10
Process
Beverage Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
6.50
2015
6.00
2016
2017
5.50
Beverage 0.17, 4.97
2018
5.00
2019
2020
2023
2024
4.50
2021
2022
4.00
0.16
0.17
0.18
0.19
Operating Margin
Beverage Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 12
Chemical Industry Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
2015
5.50
2016
2020
2017
5.00
2019
2018
2021
Chemical 0.17, 4.97
2023
4.50
2024
2022
4.00
0.07
0.08
0.09
0.10
0.11
0.12
0.13
0.14
0.15
Operating Margin
Chemical Industry
◆ Average (Operating Margin, Inventory Turns)
Supply Chain Insights LLC Copyright © 2025, p. 13
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Container and Packaging Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
6.50
2020
2016
2018
6.00
2017
2015
2019
2021
2022
Cont & Pack 0.11, 5.79
5.50
2023
2024
5.00
0.10
0.11
0.12
Operating Growth Container & Packaging Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 14
Food Industry Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
9.00
2016
2015
8.50
2018
2019
8.00
2017
Food 0.10, 7.73
2020
7.50
2021
2023
7.00
2024
2022
6.50
0.08
0.09
0.10
0.11
Operating Margin Food Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 15
Furniture Industry Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
6.50
2016
6.00
2015
2017
2019
2018
5.50
Furniture 0.05, 5.24
2020
5.00
2021
4.50
2024
2023
2022
4.00
0.02
0.03
0.04
0.05
0.06
0.07
0.08
Operating Margin
Furniture Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 16
Household Non-Durable Operating Margin vs. Inventory Turns (2015 - 2024)
2018
Household Non-Durable 0.15, 4.56
Best Scenario
5.00
2015
2017
2016
2023
2019
4.50
2024
2020
2021
4.00
2022
3.50
0.12
0.13
0.14
0.15
0.16
0.17
Operating Margin Household Non-Durable Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 17
Medical Device Industry Operating Margin vs. Inventory Turns (2015 - 2024)
2018
Best Scenario
3.00
2019
2017
2015
2016
Medical Device 0.17, 2.73
2021
2020
2024
2.50
2022
2023
2.00
0.14
0.15
0.16
0.17
0.18
0.19
0.20
Operating Margin Medical Device industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 18
Personal Products Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
3.00
Personal Products 0.11, 2.49
2015
2016
2017
2018
2021
2.50
2024
2020
2019
2022
2023
2.00
0.07
0.08
0.09
0.10
0.11
0.12
0.13
Operating Margin Personal Products Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 19
Pharmaceuticals Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
2.50
2018
2017
Pharma 0.22, 2.17
2021
2016
2015
2022
2024
2019
2020
2.00
0.19
0.20
0.21
0.22
0.23
0.24
0.25
2023
Operating Margin Pharmaceutical Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 20
Pharmaceuticals Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
2.50
2018
2017
Pharma 0.22, 2.17
2021
2016
2015
2022
2024
2019
2020
2.00
0.19
0.20
0.21
0.22
0.23
0.24
0.25
2023
Operating Margin Pharmaceutical Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 21
Discrete
Aerospace and Defense Industry Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
8.00
2018
2019
2020
2021
7.50
2023
2022
2017
7.00
2024
A&D 0.05, 7.11
6.50
2016
6.00
5.50
2015
5.00
4.50
-0.07
-0.05
-0.03
-0.01
0.01
0.03
0.05
0.07
0.09
0.11
0.13
0.15
Operating Margin Aerospace and Defense Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 23
Automotive Industry Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
7.50
2015
2018
2017
2016
7.00
2019
Automotive 0.07, 6.66
2021
6.50
2020
6.00
2022
2024
2023
5.50
0.05
0.06
0.07
0.08
0.09
Operating Margin Automotive Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 24
Automotive Parts Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
8.00
2016
2019
2015
7.50
2018
2017
7.00
Automotive Parts 0.10, 6.85
2020
2024
6.50
2023
2021
6.00
2022
5.50
0.07
0.08
0.09
0.10
0.11
0.12
0.13
Operating Margin Automotive Parts Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 25
Apparel Manufacturing Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
3.50
Apparel Manufacturers 0.11, 2.86
2015
2017
2016
2019
3.00
2018
2020
2024
2021
2023
2.50
2022
2.00
0.06
0.08
0.10
0.12
Operating Margin Apparel Manufacturers industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 26
B2B Technology Operating Margin vs. Inventory Turns (2015 - 2024)
8.50
Best Scenario
2016
8.00
2024
2019
7.50
2015
2018
2020
2017
7.00
B2B Technology 0.06, 7.10
2021
6.50
2023
2022
6.00
0.04
0.05
0.06
0.07
0.08
0.09
Operating Margin B2B Technology Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 27
Contract Manufacturing Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
7.00
2018
2019
6.50
2020
2016
6.00
2017
2015
2021
5.50
Contract Manufacturers 0.04, 5.67
5.00
2022
2024
4.50
2023
4.00
0.02
0.03
0.04
0.05
0.06
0.07
Operating Margin Contract Manufacturers Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 28
Diversified Industry Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
5.00
2016
2019
2018
2015
4.50
2020
2017
Diversified 0.13, 4.31
2023
2024
4.00
2021
2022
3.50
0.11
0.12
0.13
0.14
0.15
0.16
Operating Margin Diversified Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 29
Furniture Industry Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
6.50
2016
6.00
2015
2017
2019
2018
5.50
Furniture 0.05, 5.24
2020
5.00
2021
4.50
2024
2023
2022
4.00
0.02
0.03
0.04
0.05
0.06
0.07
0.08
Operating Margin
Furniture Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 30
Household Durable Industry Operating Margin vs. Inventory Turns (2015 - 2024)
Best Scenario
5.00
2016
Household Durable 0.09, 4.24
2019
4.50
2018
2015
2017
2020
4.00
2023
2024
2021
2022
3.50
3.00
0.06
0.07
0.08
0.09
0.10
0.11
Operating Margin Household Durable Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 31
Medical Device Industry Operating Margin vs. Inventory Turns (2015 - 2024)
2018
Best Scenario
3.00
2019
2017
2015
2016
Medical Device 0.17, 2.73
2021
2020
2024
2.50
2022
2023
2.00
0.14
0.15
0.16
0.17
0.18
0.19
0.20
Operating Margin Medical Device industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 32
Semiconductors Operating Margin vs. Inventory Turns (2015 - 2024)
5.00
Best Scenario
2017
2016
2018
4.50
2015
2019
Semiconductors 0.17, 4.06
2020
4.00
2021
2024
2022
3.50
2023
3.00
0.11
0.12
0.13
0.14
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
Operating Margin Semiconductor Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 33
Telecommunications Operating Margin vs. Inventory Turns (2015 - 2024)
17.00
Best Scenario
2021
16.00
15.00
14.00
Semiconductors 0.17, 4.06
13.00
2018
2016
12.00
2019
2015
11.00
2017
2024
2020
10.00
2022
2023
9.00
8.00
0.10
0.11
0.12
0.13
0.14
Operating Margin Telecommunoication Industry ◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 34
Tires Operating Margin vs. Inventory Turns (2015 - 2024)
4.50
Best Scenario
2016
Trucks & Heavy Equip 0.09, 4.09
2024
2019
2017
2018
2022
4.00
2021
2020
2023
2015
3.50
0.05
0.06
0.07
0.08
0.09
0.10
0.11
0.12
0.13
Operating Margin Tire Industry
◆ Average (Operating Margin, Inventory Turns)
Source: Supply Chain Insights LLC, Corporate Annual Reports 2015-2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 35
SECTION 4
Conclusion
37
Rethink Metrics
Focus on Balanced Scorecard
Focus on Reliability
Supply Chain Insights LLC. Copyright © 2025
38
Conclusion
• Start the journey for supply chain excellence by understanding market potential. • To maximize the value of the firm, align metrics to maximize market capitalization. Focus on improving the balanced scorecard of customer service, operating margin, Return on Capital Employed (ROCE), and inventory turns. • Align functional metrics to improve the balanced scorecard. Reward functional teams on improving reliability.
Supply Chain Insights LLC Copyright © 2025
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