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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