14
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SUPPLY CHAINS TO ADMIRE | 2023
A Closer Look at Supply Chains to Admire Results by Industry
At the start of this analysis, we start by mapping industry trends. Supply chain practices grew in importance as the margins of 85% of the industry sectors regressed over the last decade. Companies cannot drive progress based on traditional process paradigms without redesigning the supply chain. In many organizations, inventory is a sticky wicket—a political hot potato. At the end of 2021, inventory levels were significantly higher across industries than pre-recession levels in 2007. Today, many companies have burgeoning inventories but lack the right products to ship orders reliably. They are drowning in inventory, decreasing cash-to-cash performance, but have the wrong products to ship orders. The lack of performance in inventory optimization is a significant factor in determining the winners in the Supply Chains to Admire Award process. While over 82% of manufacturers with over $ 5B in annual revenue own an advanced planning solution, a spreadsheet is the most often used technology. There is a significant gap in
inventory performance between companies that use advanced optimization versus those dependent on spreadsheets. When we started this analysis, we believed it would favor the iconic brands of Procter & Gamble, Unilever, or Walmart. While each Company contributed significantly to supply chain process improvement, in this study, each struggled to outperform its peer group on the balanced scorecard selected for this analysis.
Table 6. Inventory Levels by Industry Sector Across Time Periods
Days of Inventory by Industry: Comparison across Years
Years
Diffeence (2020 - 2021 vs 2004 - 2006)
Industries
2004 - 2006
2007 - 2008
2009 - 2013
2014 - 2019
2020 - 2031
Medical Device
110
113
131
143
163
53
Beverage
115
229
238
191
164
49
Pharmaceuticals
155
144
170
195
197
42
Beauty
89
108
116
125
124
35
Automotive Parts
49
55
64
69
81
32
Household Products
50
51
57
74
82
32
Aerospace & Defense
94
89
97
103
123
29
Chemical
62
58
64
80
88
26
Apparel Retail
62
65
66
69
84
22
Automotive
35
39
41
45
49
14
Food
50
51
56
58
59
9
Semiconductor
61
68
80
91
68
7
Broadline Retail
65
62
63
66
58
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