11 SUPPLY CHAINS TO ADMIRE | 2025
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Chemical Industry Operating Margin vs. Inventory Turns (2015 - 2024) Figure 2. Shifts in Industry Potential for the Chemical Industry for the Period of 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) Source: Supply Chain Insights LLC Corporate Annual Reports 2015 2024 from YCharts
Supply Chain Insights LLC Copyright © 2025, p. 1
Many factors drive supply chain potential. Some include: ‣ Commodity prices.
‣ Rise of supplier delivery and quality issues.
‣ Reliability of factories.
‣ Lack of organizational alignment. Corporate politics.
‣ Data latency and the organization's ability to use data at the speed of business.
‣ Unchecked complexity and the increase in the size of the product portfolio. ‣ Shifts in demand variability with an increase in items that are not forecastable by conventional means.
‣ Slowing of transportation modes.
‣ Increase in governmental compliance legislation. A common mistake is the belief that progress on supply chain improvement is unlimited rather than bounded by market reality. For this reason, the Supply Chains to Admire report compares each company within a peer group to industry potential.
‣ A rise in demand shaping programs.
‣ Growth and complexity of nodes within the distribution network.
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