A Closer Look at Industrial Conglomerates

The Supply Chain Metrics That Matter Analysis of industrial conglomerates. The analysis compares progess on the effective frontier of growth, cost (operating margin), cycles (inventory cycles), and Return on Invested Capital (ROIC). Note the trends. Overall, operating margin is increasing while inventory turns are going down. In the orbit charts, Schneider Electric is going backwards at the intersection of operating margin and inventory turns while Emerson, LeGrand, and Honeywell are making progress. Companies that excel in supply chain performance balance growth, operating margin, inventory turns and Return on Invested Capital (ROIC) together as a complex system to maximize market valuation.  

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