The Supply Chain Index™ is designed to be used as a ranking system and benchmarking tool. It enables companies to rank supply chain improvement while gaining a better understanding of the relationship between supply chain and financial (market capitalization) performance. The Supply Chain Index is one piece of the Supply Chains to Admire methodology: our effort to rank the best supply chains in the world. Unlike other ranking systems, this method is based solely on quantitative data and corporate financial performance, removing subjectivity from the decision process. We compare performance on financial supply chain metrics with stock market performance (market capitalization and Price to Tangible Book Value) to identify top performers. In addition, because supply chains come in all shapes and sizes, our Index is built upon peer groups operating in the same industries with similar challenges and opportunities present within the business environment. We simply do not believe that McDonald’s, Apple and Walmart provide an appropriate comparison, as best practices in one industry rarely translate apples-to-apples across industry lines. Finally, the Index is based upon financial performance of companies from 2006 forward. In the Supply Chains to Admire methodology, we apply it to the period of 2009-2015. Building a great supply chain is not something that can be done with a short-term project approach as excellence comes in small steps over a sustained long-term period.
View our Launch of the Supply Chain Index on-demand webinar
View the Launch of the Supply Chain Index PowerPoint slide deck on SlideShare
Read our 2016 Supply Chains to Admire report.