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2022 // SUPPLY CHAINS TO ADMIRE
Process Industry Overview Peer groups within the process industry manage flows. The most severe degradation of results occurred in the process industry over the last decade. The reason why? These industries have a strong dependency on oil and other commodities with extreme volatility. Process industries tend to be large (greater than 15B$ in annual revenue) with a historical focus on manufacturing excellence. With a historic bias to marketing and sales-driven processes, no company in the industry uses channel data well. Table 30 shows the cut-off for each sector for the Supply Chain Index, along with details of progress in the process industries.
Table 30. Overview of the Process Industry
Return on Invested Capital
Average Revenue (M$)
Year-over- Year Growth
Inventory Turns
Operating Margin
Price to Book Value
Number of Companies
PROCESS
Average for 2012-2021
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
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