Inventory Benchmarking Vertical Sector Trends
Download TODAY
A critical benchmark for inventory management. Inventory Benchmarking Vertical Sector Trends compares many of the world’s leading manufacturers and retailers against key financial supply chain metrics.
In particular it:
- Defines the key ratios available from financial disclosures
- Conducts a by-industry vertical sector analysis of inventory management and benchmarking data for the high tech, automotive, retail, pharmaceutical, fashion and consumer goods industries
- Examines the supply chain and inventory management strategies of selected blue chip companies with reference to these benchmarks
- Where available, examines the different types of inventory held by these companies and how these have changed
- Compares and contrasts the performance of these companies.
Inventory Benchmarking Vertical Sector Trends also includes exclusive access to an online data pack with interactive charts, tables and downloadable data.
This report contains:
- Inventory management strategies across key vertical sectors
- Supply chain strategies of the most influential manufacturers and retailers
- Analysis of supply chain performance by key ratios available from financial disclosures
- Compares inventory management performance by core benchmarks
- Exclusive access to an online data pack with interactive charts, tables and downloadable data.
This report contains:
- Inventory management strategies across key vertical sectors
- Supply chain strategies of the most influential manufacturers and retailers
- Analysis of supply chain performance by key ratios available from financial disclosures
- Compares inventory management performance by core benchmarks
- Exclusive access to an online data pack with interactive charts, tables and downloadable data.
Key questions the report answers
- How are benchmarks calculated and what do they mean?
- Why are lean inventory supply chains considered advantageous?
- Are companies still focused on reducing inventory?
- Which sectors and companies have highest and lowest days inventory?
- How do you quantify improvements in the operational and financial performance of retailers and manufacturers?
Exclusive highlights
- By-industry vertical sector analysis of inventory management and benchmarking data for the high tech, automotive, retail, pharmaceutical, fashion and consumer goods industries
- Analysis of supply chain and inventory management strategies adopted by selected blue chip companies, and a comparison of the performance of these companies
- Inventory management strategies and key trends within each vertical sector
- Analysis of 'Inventory Turnover’ and ‘Days of Supply in Inventory’
Do you need to benchmark and optimize your own inventory strategy?
Ti Consultancy can help benchmark and optimize your inventory management and supply chain strategy.
Our team of consultants is made up of professionals with many years of experience working in their particular sector to optimize supply chain strategy.
To speak to one of our industry experts please contact Michael Clover [email protected] who will be happy to connect you with one of our consultancy teams.
Professor John Manners-Bell
Andy Ralls
Tony Walford
Zen YaworskyA long career in retail supply chain operations with a major global retailer has given Zen an expertise in strategic supply chain change management and operational detail. He was responsible for transforming the supply chain for Marks and Spencer PLC its over 400 suppliers in 5 continents. He is practiced in setting up and operating supply chain operations in the Far East, South Asia, Middle East, and Turkey, and has developed logistics and distribution hubs servicing UK and international markets. He has acted as a consultant to major UK and European retail customers on matters of supply chain transformation and has undertaken board level coaching on matters of procurement and supply chain optimisation, and develops advanced negotiating skills within senior management teams of international companies. Zen is visiting lecturer at Westminster University in the UK on matters of fashion industry supply chain and business administration.
|
Key Findings 7
Supply Chain Management and Company Performance 11 The key benchmarks 12 Increasing inventory levels 14 Industry sector performance 17 Industry sector DSI progression 18 Cross-industry upper quintile DSI 19 Cross-industry lower quintile DSI 20
2.1 High Tech: Consumer Electronics 22 Company DSI: Ten lowest 23 Most days added/reduced 24 Dell 25 Hewlett Packard 28 Lenovo 31 Apple 34 Selected company comparisons 38 Inventory metric comparisons 39 Conclusion 40 DSI Table 41 2.2 High Tech: Other 42 Inventory strategy overview: Contract Manufacturing 43 Inventory strategy overview: Semiconductors 45 Company DSI: Ten lowest 47 Sector DSI average progression 48 Most days added/reduced in past 10 years 49 Cisco 50 Jabil 52 Western Digital 56 DSI Table 58 3.0 Retail 59 Inventory trends – the impact of e-retail 60 Amazon 63 3.1 Retail: Department Stores 67 Average DSI 68 Most days added/reduced in past 10 years 69 John Lewis 70 Sears 72 Macy’s 74 Nordstrom 75 DSI Table 77 3.2 Retail: Supermarkets 78 Introduction 79 Trends in DSI 80 Walmart 81
|
Marks & Spencer 85 Aldi 87 Tesco 89 Carrefour 91 DSI Table 93 Conclusion 94 4. Pharmaceutical 95 Inventory management in pharmaceuticals 96 Most days added/reduced in past 10 years 99 DSI meaning for the industry 100 Johnson & Johnson 101 GSK 102 Pfizer 104 Conclusion 106 DSI Table 107
Inventory trend 109 Company DSI: Ten lowest 110 Toyota 111 Volkswagen 114 Ford 117 Tesla 120 Conclusion 125 DSI Table 126
Inventory strategy overview 128 Inventory strategy overview – Fast Fashion 130 Inventory strategy overview – Luxury Brands 131 Company DSI: Ten lowest 132 Sector DSI Average progression 133 Most days added/reduced in past 10 years 134 Inditex 135 Adidas 137 Superdry 139 DSI Table 140
Inventory strategy overview 142 Ten lowest DSI 145 Most days added/reduced in past 10 years 146 Selected manufacturers 147 Unilever 149 Procter & Gamble 151 Kimberley-Clark 154 Conclusion 157 DSI Table 160 |
Inventory levels see decade long rise, says new Ti report.
June 25th 2019, London, UK: It could be assumed that several decades after supply chain management practices such as ‘lean’, ‘build-to-order’ and ‘just-in-time’ became accepted across industry, inventory levels would have seen a steady and inexorable decline.
However, the latest report by Transport Intelligence, Inventory Benchmarking Vertical Sector Trends, has found that the stock held by manufacturers and retailers, as measured by Days of Supply in Inventory (DSI), has actually risen over the past ten years.
This data, based on the financial reports of 187 manufacturers and retailers located around the world reveals that, on average, companies in 2017 were holding 10 more days stock than in 2008: increasing from 80 to 90 days. The research also found that the retail industry operates with the lowest average DSI: 33 days in 2017. At the other end of the spectrum, the pharmaceutical sector operates with an average of 186 days.
According to one of the authors of the report, Professor John Manners-Bell, this indicates that reducing inventory levels is just one of a number of competing goals for many companies. “Despite the textbooks telling us that inventory reduction should be the main goal for supply chain managers, the present market environment requires a far more sophisticated approach, balancing a range of important objectives.”
Examples of this new approach include Walmart, which now regards the availability of stock to purchase by consumers as a major factor in its existential battle with Amazon, despite the inevitable consequence of higher inventory. Lenovo and Hewlett Packard took a similar approach to building up inventory in order to maintain product availability in physical stores in contrast with Dell’s lean inventory strategy. Risk is also a factor, as companies seek to avoid the supply chain problems they faced after a number of high profile disruptive events in the early part of the decade, such as the Thai floods and Japanese tsunami.
Co-author, Andy Ralls, added, “A focus on achieving an appropriate amount of inventory is and always will be hugely important to efficient supply chain management. However, as our research shows, competing priorities, be they driven by e-commerce, changing customer demands, product development, risk or even regulatory requirements, have caused many companies to fundamentally assess their supply chain strategies.”
About Inventory Benchmarking Vertical Sector Trends
A critical benchmark for inventory management. Inventory Benchmarking Vertical Sector Trends compares many of the world’s leading manufacturers and retailers against key financial supply chain metrics.
In particular it:
- Defines the key ratios available from financial disclosures
- Conducts a by-industry vertical sector analysis of inventory management and benchmarking data for the high tech, automotive, retail, pharmaceutical, fashion and consumer goods industries
- Examines the supply chain and inventory management strategies of selected blue chip companies with reference to these benchmarks
- Where available, examines the different types of inventory held by these companies and how these have changed
- Compares and contrasts the performance of these companies.
The report also includes exclusive access to an online data pack with interactive charts, tables and downloadable data.
Find out more about the report by clicking here
About Ti: Transport Intelligence (Ti) is the leading source of market research and intelligence for the global supply chain and logistics industry. Since its founding in 2002, the company has delivered a range of research products and consulting solutions to the world’s largest retailers, banks, consultancies, shipping lines and logistics providers, and become trusted advisors to global institutions such as the World Economic Forum, the World Bank, the UN and the European Commission.
For any enquiries, please contact Ti’s Head of Commercial Development, Michael Clover +44 (0) 1666 519907 [email protected]
Web: ti-insight.com
Twitter: @Ti_insight
Linkedin: The Transport Intelligence Forum
This report is perfect for:
- Business Development teams of LSPs
- Global manufacturers and retailers
- Banks and financial institutions
- Supply chain managers and directors
- Marketing managers
- Knowledge managers
- Investors
- All C-level executives