9 SUPPLY CHAINS TO ADMIRE | 2025
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So, you might ask, why don’t we use these linear regression models to determine the Supply Chains to Admire Award Winners? The answer is easy. The supply chain is not linear. The answer is more complex, requiring an analysis of improvement over time, performance against industry potential, control of outcomes, and value delivery. To help us understand these trends, we use orbit charts. This report uses these key metrics
of growth, operating margin, inventory turns, and ROCE to analyze 530 companies in 28 industries. The supply chain is a non-linear, complex system with many moving parts. Market influences define industry potential. Performance benchmarking should always be by peer group against industry potential.
Table 3B. Comparison of Operating Margin versus Cost of Goods Sold in Regression Analysis using Market Capitalization/Employee As An Objective Function
Number of Companies
Operating Margin
Inventory Turns
Jarque Bera Statistic
Testing (2019)
INDUSTRY
Revenue
ROCE
R²
Apparel Manufacturing
26
X
X
0.45
3.4
0.31
Automotive
18
X
X
0.51
29.9
0.44
Automotive Aftermarket
33
X
X
X
X
0.45
0.4
0.43
Beverage Industry
20
X
0.71
4.6
0.62
B2B Technology
26
X
X
0.30
29.9
0.46
Chemical Industry
37
X
X
X
X
0.48
17.6
0.50
Containers and Packaging
19
X
0.42
0.4
0.38
Diversified Industries
28
X
X
X
0.44
9.4
0.16
Food Manufacturing
31
X
X
X
0.73
30.9
0.44
Medical Device
26
X
X
X
0.49
14.7
0.09
Pharmaceuticals
31
X
X
X
0.32
80.2
0.28
Semiconductor
28
X
X
X
X
0.40
25.8
0.17
Telecommunications
27
X
X
0.80
24.2
0.21
Table 3B. Comparison of Operating Margin versus Cost of Goods Sold in Regression Analysis using Market Capitalization/Employee As An Objective Function
R 2 Operating Margin R 2 Cost of Goods Sold ...and Inventory Turns Regression Analysis to Market Capitlization/Employee
INDUSTRY SEGMENT
Food
0.464
0.170
Pharmaceuticals
0.532
0.361
Chemical
0.601
0.349
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