Supply Chain Metrics That Matter: Household Products

Supply Chains to Admire results for Household Products for the Period of 2009-2015. Each year, Supply Chain Insights analyzes companies by peer group to understand which companies are driving the highest levels of performance while also driving improvement. The winner for two consecutive years is Clorox.

Year-over-year performance on orbit charts at the intersection of inventory turns and operating margin for Colgate is depicted below. Most household products companies have a pattern similar to Colgate. The performance level at 2015 is the same as 2006. One of the primary issues was the rise in complexity. The increase of 38% additional items on the item master introduced so much complexity that the supply chain could not adjust.

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