Report Details: Over the past four months, the Supply Chain Insights team mined supply chain data from multiple sources—balance sheets, market indexes, and quantitative data—to better understand the relationship between the choices in supply chain processes and balance sheet results. This study included data from 1449 public companies. (These are mainly North American-based manufacturers, distributors and retailers.) For each company, 493 financial metrics from balance sheets and income statements were loaded into the data lake for the period of 2004-2016 using YCharts data (YCharts is a provider of syndicated balance sheet and income statement data). In addition, the data lake was enriched with 20 market indexes on cost, growth and market trends. Our goal was to understand the characteristics of companies outperforming on growth, cost, and value.
Objective: To understand the role of supply chain process evolution on balance sheet results.
Highlight: Companies that invest in building supply chain talent do significantly better in the management of supply chain costs. Surprisingly, there is an inverse relationship between companies that believe that they are doing well in supply chain planning and the balance sheet results of costs and inventory.