Benchmarketing
You will not see Inventory Turns in our benchmarking work because Company to Company comparisons are impossible.
- Accounting differences are not identified in public records, using LIFO rather
than FIFO is major as is the method for calculating gross margins.
- Further, some firms own inventory just to the plant warehouse level while others
own the inventory through distribution and even at retail (GE lighting division)
We focus on what you do and how you operate. Where appropriate, numbers are
given from our actual client work over the past 14 years.
Advantaged firms, we identify as Stage 4 in this work, will be the competitive
surviors and have long-term viability. They will benefit as follows:
- Revenue growth due to
focused marketing activity
-
Highest industry profitability due to value delivery
-
Relatively higher inventory turns
due to cross functional planning
- 10% to 15% reduction in supplier
pricing due to stabilized schedules