SUPPLY CHAINS TO ADMIRE // 2022
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Driving Progress by Conquering The Effective Frontier
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The supply chain is a complex, nonlinear system. Globalization increased both complexity and non-linearity. In 2012, Supply Chain Insights worked with
While we wish to include customer service in the analysis, there is no industry standard to enable the comparison. Likewise, while we strongly believe in corporate
Arizona State University to determine the most appropriate metrics to correlate to Market
Figure 3. The Approach: Balanced Scorecard Analysis
sustainability, we do not feel that any of the current sustainability indexes, due to dependency on self- reported data, are accurate reflections of company performance. A test of a true leader is the ability to drive higher performance levels within a peer group and sustain this competitive advantage over time. Using the Supply Chains to Admire analysis,
Capitalization. Based on the correlation of data from over 150 metrics for the period of 2006- 2012 for more than five hundred companies, we nced ard ed on Value
selected the parameters of growth, operating margin, inventory and Return on Invested Capital (ROIC) for the balanced scorecard analysis. We call this balanced scorecard, as shown in Figure 3, the Effective Frontier.
in Table 1, we show consecutive year winners.
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