Supply Chains to Admire Analysis for 2019

A Nine-Year View of Progress on
Supply Chain Excellence
09/01/2019
Lora Cecere
Founder and CEO
Supply Chain Insights LLC
Regina Denman
Client Services Director
Supply Chain Insights LLC
2019 Supply Chains to Admire

Table of Contents
Disclosure.....................................................................................................................3
Executive Summary......................................................................................................3
A Closer Look at Supply Chains to Admire ...................................................................7
Results by Industry .......................................................................................................7
Comparison of the Methodologies.................................................................................8
Trends and Insights ......................................................................................................9
What Drives Value? ....................................................................................................10
Recommendations......................................................................................................11
Conclusion..................................................................................................................12
Analysis by Industry....................................................................................................13
Retail Overview...........................................................................................................13
Discrete Industry Overview .........................................................................................16
Process Industry Overview .........................................................................................28
Research Methodology ...............................................................................................35
Determining Winners ..................................................................................................35
The Criteria.................................................................................................................36
Prior Reports in This Series ........................................................................................38
About Supply Chain Insights LLC................................................................................39
About Lora Cecere......................................................................................................39

Disclosure
Your trust is important to us. As such, we are open and transparent about our financial relationships
and our research processes. This independent research is 100% funded by Supply Chain Insights.
Our reports are intended for you to read, share and use to improve your supply chain decisions.
Please share this data freely within your company and across your industry. All we ask for in return is
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Executive Summary
Today, supply chain leaders want to excel. They are action-oriented and competitive. Many business
leaders wonder why they are not seeing more improvement in translating supply chain strategy into
action.
The Supply Chains to Admire™ report series is now in its sixth year. The goal of this research is
threefold:
1) Help supply chain leaders set realistic supply chain goals.
2) Provide industry benchmarks by industry peer groups.
3) Reward companies achieving higher levels of supply chain excellence.
This report represents progress of public companies in the longest-ever economic expansion and a
period of regional-to-global sifts in trade.
Defining supply chain excellence is easier to say than to define. The Supply Chains to AdmireTM
methodology is an attempt by Supply Chain Insights to identify companies within industry peer groups
that drove higher levels of improvement, a superior value in public markets, and better performance
during the 2010-2018 time period on the metrics of year-over-year growth, operating margin,

inventory turns, and return on invested capital.
This analysis ranks 515 public companies in twenty-eight industry peer groups. Twenty-three
companies met the criteria. While the number of companies varied by year in the analysis due to
merger and acquisition, and shifts in peer groups, the win rate remains constant at 4%. In summary,
only 4% of companies are performing above their peer group while driving improvement.
Within a company, there are many barriers. Functional excellence is a barrier to improving balance
sheet improvement. Organizations are not aligned. Metrics are not clear. Historically, the focus has
been on building efficient processes for sell, deliver, make, and sourcing organizations. It is clear that
efficient silos do not deliver superior balance sheet performance.
Instead, the Supply Chains to Admire winners align the functions within the organization to drive
progress against a balanced scorecard. The supply chain is a complex, nonlinear system. Shown in
Figure 1 is the balanced scorecard used for this analysis.
Figure 1. The Approach: Balanced Scorecard Analysis
While we wish that we could include customer service in the analysis, there is no industry standard to
enable the comparison. Companies are constantly balancing growth, profitability, cycles, and
complexity against the goals of customer service.

Since there is no industry-standard definition of supply chain excellence or clarity on how the actions
of the supply chain team to deliver shareholder value. This is the goal of the Supply Chains to Admire
analysis. To demonstrate this, we use a vector analysis of company orbit charts at the intersections of
Inventory Turns and Operating Margin, and Growth and Return on Invested Capital as the basis for
the Supply Chain Index calculation. To understand the methodology, in Figure 2 we share an orbit
chart of Apple at the intersection of inventory turns and operating margin. Note the level of
performance improvement in 2010-2012 with a fall in 2013-2018. Despite the decline, Apple still
outperforms its peer group in driving both a higher level of performance and driving improvement. The
industry peer group averages shown in the box in green are a 6% operating margin with 8.99
inventory turns.
Figure 2. Orbit Chart for Apple at the Intersection of Operating Margin and Inventory Turns for 2010-2018

The Supply Chains to Admire analysis is now in its sixth year of development. The winners are shown
in Figure 3.
Figure 3. Supply Chains to Admire Winners for 2018
Listed in alphabetical order, the thirty-one winners for 2018 include AbbVie, Apple Inc. (Apple);
Broadcom Inc. (Broadcom); BorgWarner, Capri Holdings LTD (Capri), Continental AG (Continental),
Dollar General Corporation (Dollar General); Eastman Chemical (Eastman), Ecolab Inc.(Ecolab),
Intuitive Surgical, Herman Miller, Inc. (Herman Miller); L'Oréal S.A. (L'Oréal); Leggett & Platt,
Lockheed Martin, Lululemon (Lululemon Athletica), Koninklijke Ahold Delhaize N.V. (Ahold), Monster
Beverage Corporation (Monster), PACCAR Inc. (PACCAR), Packaging Corporation of America
(PCA); Ross Stores, Inc. (Ross), Sleep Number, The TJX Companies, Inc. (TJX); Ubiquiti Networks,
Inc. (Ubiquiti),
A test of a true leader is the ability to not only drive higher levels of performance within a peer group
but to also sustain a competitive advantage over time. Using the Supply Chains to Admire analysis, in
Table 1 we show consecutive year winners. It is an elite list. L’Oréal is the year-over-year winner.

Table 1. Consecutive Year Winners for the Supply Chains to Admire
A Closer Look at Supply Chains to Admire
Results by Industry
To make the cut, winners pass tough criteria.
Conspicuously absent in the discrete industries for 2019 are the names of Cisco Systems, Intel, and
Taiwan Semiconductor (TSMC). These companies were winners at least twice in the past five years.
In this analysis, each company struggled with performance on one of the criteria.
When we started this analysis, we believed we would see the iconic brands of Procter & Gamble,
Unilever, Walmart top the list. However, this has not been the case. These companies struggle to
outperform their peer groups on the balanced scorecard selected for this analysis.
Industry Company 2019 2018 2017 2016 2015 2014
Aerospace & Defense Lockheed Martin X
Capri Holdings Ltd X X
BorgWarner X
Automotive Parts Continental AG X
Beverages Monster Beverages X X
Eastman Chemical X X
Ecolab X
Containers & Packaging Packaging Corporation of America X X X
Herman Miller, Inc. X X X
Leggett & Platt X X
Sleep Number X
Medical Device Intuitive Surgical X
Pharmaceutical AbbVie X
Personal Products L'Oreal S.A. X X X X X
Lululemon Athletica X X
Ross Stores X X
TJX Companies X X X
Retail Broadline Dollar General X X X
Retail Food Ahold X
TechnologyB2B Apple Inc X X X X
Technology Semiconductor BroadcomLimited X X X
Technology Telecommunications Ubiuqiti Networks X X X
Trucks & Heavy Equipment Paccar X X
Chemical
Apparel Manufacturers
Furniture
Retail Apparel

Comparison of the Methodologies
Client requests initiated the development of the Supply Chains to Admire methodology. The industry
was frustrated with the Gartner Top 25 approach. Companies wanted more than a popularity contest.
The request was for a data-driven analysis based on corporate financials which allowed the
comparisons of large and small companies across currencies. The goal was to understand the
relative positions of companies within industry peer groups. A comparison of the two approaches to
understand supply chain excellence is shown in Table 2.
Table 2. Comparison of the Gartner Top 25 to the Supply Chains to Admire
Apple and L’Oréal are the only two companies that meet the criteria for the two very different
comparisons.

Trends and Insights
In our prior interviews with companies making the Supply Chains to Admire list, we found
commonalities and similar patterns. Leaders have five characteristics. These are shown in Table 5.
Table 3. Characteristics of Supply Chains to Admire Leaders
Winning companies have longer tenure of their leadership teams, with a keen focus on long-term
outcomes. There is an avoidance of supply chain fads, and multiple consulting-based projects, with a
dogged focus on supply chain excellence.
Complexity throws the supply chain out of balance. Leaders, through alignment on market-drivers,
manage complexity and manage portfolios.
Figure 4. Definition of Horizontal Processes
Likewise, we find that leaders in supply chain management have strong horizontal processes: a focus
on revenue management, Sales and Operations Planning (S&OP), new product launch/innovation

(NPI), Corporate Social Responsibility, and Supplier Development. As shown in Figure 4, these
horizontal processes are interlinked and stretch from the customer’s customer to the supplier’s
supplier. A functional or project-based orientation does not drive value.
The strongest S&OP, NPI and supplier development processes are in the discrete industries. The gap
between process-based and discrete industries has widened in the period of 2006-2018. We feel this
is one of the reasons many process-based companies are regressing on the Supply Chain Metrics
That Matter.
What Drives Value?
As a part of this analysis, we are continually asked, “What drives value?” In 2016 we mined our
quantitative data to answer the question, “What steps should companies take to improve Price to
Tangible Book Value?”
The definition of PTBV is:
Price to Tangible Book Value = Market Share Price / Tangible Book Value/Share Outstanding
We found that
companies who have a
Supply Chain Center of
Excellence, an S&OP
process that is
considered to be
effective or has less
business pain with
supplier reliability, are
more likely to be
driving PTBV
performance.

Recommendations
When benchmarking a supply chain, it is important to look at performance and improvement
(together) within a peer group of companies over time. There are trade-offs. Companies operating
with higher levels of performance will struggle with improvement, while companies with a lower level
of performance will drive faster rates of improvement. Continuous improvement processes do not
always drive value. Why? There is a need to drive improvement against a strategy.
As supply chain leaders develop strategies and focus on driving balance sheet improvement, we
recommend that supply chain teams consider these seven recommendations:
1) Build a Guiding Coalition to Drive Improvement Based on Industry-Specific Data. To
maximize potential and to set goals, organizations should benchmark against companies within
their industry sector. Each industry has unique rhythms and cycles. As a result, supply chain
excellence analysis needs to be an industry-specific comparison.
2) Understand Supply Chain Potential and Orchestrate Trade-offs. Balanced metrics portfolios
drive higher levels of value for the company. The metrics are nonlinear and tightly coupled.
Managing them as a group in a balanced portfolio requires system thinking. Companies with higher
performance use advanced analytics to plan outcomes and design the supply chain.
3) Drive Horizontal Alignment. We find that those who have the best performance on the Effective
Frontier align teams to focus on supply chain finance, and the translation of supply chain processes
and strategies into balance sheet results. This requires holistic organizational thinking which is
quite different than traditional functional thinking. This can result in a shift in analytics and reporting.
For example, today, while most organizations can easily access functional costs, only 24% of
companies can easily access total costs across source, make and deliver together. As a result, it is
tough for operational teams to make trade-offs.
4) Make the Supply Chain an Engine for Growth. When we present this data to many supply chain
teams there is a pushback. Many do not understand how their work can drive growth.
Unfortunately, many organizations are stuck in a cost-focused paradigm with significant gaps in
horizontal organizational alignment between operations and commercial teams. Shine a light on the
opportunity and take the steps to drive growth.
5) Effectively Manage Complexity. When we interviewed the leaders in past reports, we heard a
consistent theme. Each company has managed product and customer complexity. This includes
customer segmentation, cost-to-serve analysis, item rationalization and ongoing network design
efforts. In an organization, there is good complexity and bad complexity. Good complexity drives
growth with minimal impact on the performance factors on the Effective Frontier, while bad

complexity degrades performance. Maximize the growth opportunity with good complexity and
eliminate bad complexity.
6) Focus on Building Value Networks. While many of the companies in this report could leverage
power in the network to be a powerbroker in the industry to redefine outside-in processes, and build
effective value chains, 95% of companies accept the limitations of the inside-out supply chain. Over
the last decade, only Walmart and TSMC successfully executed value network strategies. Both
companies made the list in prior years.
7) Learn from Other Industries. Use a Steady Hand, and Focused Leadership, to Drive
Improvement. Over the years when we have interviewed the Supply Chain to Admire winners and
asked, “What do you think drove improvement?” they responded, “The avoidance of fads and a
steady focus on supply chain strategy.” This is not a story of consultants driving change
transformation. Instead, it is a story of supply chain leadership, driven by a focused internal team
over many years. Companies that did the best in the analysis have consistency in leadership (same
leadership team over the period), a clear definition of supply chain excellence, disciplined
processes, and cross-functional alignment. Post-recession, retail processes improved, and process
industry performance regressed. As shown in the Appendix, the greatest improvement in
performance is in the high-tech and discrete industry sectors. These companies are the strongest in
horizontal process alignment, network design and the use of supply chain planning.
Conclusion
Supply chain excellence does not just “happen.” It is the result of hard work by organizational teams
with a clear definition of supply chain strategy. Success takes many years.
The goal of this report is to provide feedback to leadership teams to help them better align supply
chain programs with corporate finance efforts to drive improved value for shareholders. This report
recognizes the 4% of companies creating value while improving and outperforming on the Supply
Chain Metrics That Matter against their industry peer group. Please join us in celebrating these
achievements.

Analysis by Industry
Here we share the individual analyses by industry peer groups to help the reader understand the data
behind this report. The companies are listed in alpha order by sector.
Retail Overview
In this analysis, we evaluate 75 companies in five retail sectors. In the analysis, five companies—
Ahold, Dollar General, Lululemon Athletica, Ross Stores, and TJX—qualify for the winner’s circle.
There are no winners in the Drug and Home Improvement Retail Sectors.
Apparel Retail
The 2019 winners for Apparel Retail are Lululemon Athletica, Ross Stores, and TJX Companies. In
2019, the 2018 winner, Urban Outfitters, slips out of the winner’s circle.
COMPANY
2018 Annual
Revenue GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK MARKET CAP
INDEX
RANK
Abercrombie & Fitch Company 3,493$ 1.0% 4.0% 3.20 4.0% 1.6 2523.5 3
American Eagle Outfitters 3,796$ 3.0% 8.7% 6.40 13.0% 2.5 3098.0 17
Ascena Retail Group Inc. 6,578$ 20.0% 5.0% 4.00 1.0% 1.3 1867.4 19
ASOS PLC 3,258$ 39.0% 6.0% 2.80 22.0% 13.9 3893.3 15
Carter`s, Inc. 3,462$ 9.0% 12.0% 3.70 16.0% 4.7 3781.3 9
Chico`s FAS 2,282$ 5.0% 8.0% 5.90 10.0% 2.2 1969.8 11
Designer Brands Inc. 2,811$ 7.6% 8.0% 4.00 12.0% 2.7 2368.7 10
Dick's Sporting Goods Inc. 8,590$ 8.0% 7.0% 0.00 5.0% 2.9 4872.6 18
Foot Locker 7,782$ 5.0% 9.0% 3.70 15.0% 2.5 6173.0 2
Gap Inc 15,855$ 1.0% 11.0% 5.40 23.0% 4.2 12753.7 7
Guess? 2,364$ 2.0% 10.0% 4.40 14.0% 2.0 2146.6 13
J.Jill Inc. 698$ 5.0% 4.0% 1.00 3.0% 0.4 63.8 1
L Brands Inc. 12,632$ 4.0% 15.0% 6.10 20.0% 3.1 16594.2 5
Lululemon Athletica Inc. 2,649$ 28.0% 19.0% 5.20 30.0% 11.2 3615.3 13
Marks and Spencer Group Plc 14,240$ -1.0% 8.0% 8.60 8.0% 2.2 8884.4 20
Nordstrom 15,478$ 7.0% 9.0% 5.30 13.0% 6.7 10067.6 8
Ross Stores Inc. 14,135$ 9.0% 13.0% 5.80 40.0% 8.6 19481.3 4
Stein Mart 1,333$ 0.0% 2.0% 3.60 8.0% 2.1 328.2 21
Tapestry Fashion Company 5,880$ 8.0% 23.0% 2.80 32.0% 5.7 12999.0 12
TJX Companies Inc. 35,865$ 7.0% 11.0% 6.10 39.0% 9.7 40601.2 6
Urban Outfitters 3,616$ 8.0% 12.0% 6.40 17.0% 3.3 4336.6 16
MEAN WITH OUTLIERS 7,943$ 8.4% 9.7% 4.50 16.4% 4.5 7734.3
MEAN WITHOUT OUTLIERS 5.8% 9.7% 4.50 16.4% 4.5 6090.9
2010-2018

Broadline Retail
The 2019 winner for the Supply Chains to Admire in the Broadline Retail sector for the period of
2010-2018 is Dollar General. In this analysis, the 2018 winners -- Dollar Tree and Pricesmart-- slip
out of the winner’s circle. Of note, Walmart and Target, winners in 2016 and 2015, no longer lead
their peer groups.
Drug Retail
In the 2019 analysis, there are no winners in the Drug Retail industry sector for the Supply Chains to
Admire. Prior winners included SunDrug in 2017 and CVS in 2016. (SunDrug is now privately held.)
COMPANY
2018 Annual
Revenue GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET
CAP
INDEX
RANK
Bed Bath & Beyond Inc. 12,349$ 6.3% 0.13 2.67 21% 4.85 9897.0 21
Best Buy Company 42,151$ -0.4% 0.04 5.97 10% 16.86 12364.0 5
Big Lots 5,264$ 1.4% 0.06 3.65 19% 2.86 2012.6 13
Burlinton Stores Inc. 6,110$ 5.8% 0.05 3.1 9% 3.02 3831.6 1
Costco Wholesale 141,576$ 8.0% 0.03 11.63 13% 2.17 59817.4 3
Dillard's Inc. 6,423$ -0.8% 0.06 3.1 9% 6.3 2868.0 3
Dollar General Corp. 23,471$ 9.4% 0.09 4.79 12% 5.06 19427.6 6
Dollar Tree Stores 22,246$ 20.7% 0.10 4.81 21% 1.53 15070.2 10
eBay Inc. 10,746$ 4.3% 0.24 0.0 13% 3.69 27675.3 19
Fred's Inc. 1,396$ 0.1% 0.00 4.22 -3% 6 491.5 20
JC Penney Company 12,873$ -3.5% -0.01 3.23 -5% 2.61 3349.7 14
Kohl's 20,084$ 2.3% 0.09 3.36 10% 1.29 11176.1 15
Macy's 24,939$ 1.0% 0.08 3.03 9% 1.23 13422.0 8
Office Depot Inc. 11,015$ -0.8% 0.05 6.74 1% 1.87 2157.8 15
Overstock.com Inc. 1,822$ 8.8% -0.01 59.7 3% 2.69 570.4 15
Pricesmart Inc. 3,167$ 11.0% 0.05 8.61 13% 1.5 2863.5 12
Target 72,714$ 1.3% 0.07 6.13 8% 7.07 39898.5 8
The Michaels Companies Inc. 5,362$ 3.2% 0.12 2.3 20% 4.45 2264.2 2
Tractor Supply Company 7,911$ 10.6% 0.09 3.33 26% 2.91 8579.4 10
Tuesday Morning 1,006$ 2.6% -0.01 2.5 -4% N/A 335.5 18
WalMart 500,343$ 2.4% 0.05 8.37 12% 6.72 236476.6 7
MEAN WITH OUTLIERS 44,427$ 4.5% 0.07 7.20 10% 4.23 22597.6
MEAN WITHOUT OUTLIERS 4.5% 0.07 4.36 10% 4.23 8912.7
2010-2018
COMPANY
2018 Annual
Revenue GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK MARKET CAP
INDEX
RANK
CVS Pharmacy 194,579$ 8.0% 0.06 9.20 8% 2.02 78259.07 7
GNC Holdings 2,354$ 3.9% 0.13 3.10 4% 2.92 2181.82 6
PetMed Express 274$ 2.6% 0.14 6.00 26% 4.60 411.79 2
Raia Drogasil 4,073$ 21.1% 0.05 4.00 10% 1.43 1253.31 5
Rite-Aid Pharmacy 21,529$ -1.8% 0.02 6.80 5% 0.34 3906.21 4
Sundrug Company Ltd. 587,857$ 7.8% 0.05 5.00 12% 1.31 659.27 8
Ulta Beauty Inc. 5,885$ 21.0% 0.01 3.86 24% 7.98 9171.96 1
Walgreens Boots Alliance 131,537$ 8.9% 0.05 8.40 11% 2.66 60443.13 3
MEAN WITH OUTLIERS 118,511$ 8.9% 0.06 5.80 13% 2.91 19535.82
MEAN WITHOUT OUTLIERS 9.1% 0.06 5.31 13% 3.03 11146.8
2010-2018

Grocery Retail
For 2019, Koninklijke Ahold Delhaize N.V. (Ahold) is the Supply Chains to Admire winner in Grocery
Retail. Prior winners included Metro AG in 2018 and Whole Foods in the years of 2016 and 2015.
Whole Foods is now owned by Amazon.
Home Improvement Retail
In-Home Improvement Retail there are no winners in the Supply Chains to Admire analysis for 2019.
In the history of this analysis for 2016-2019, no company in this peer group ever qualified as a Supply
Chains to Admire award winner in this retail category.
COMPANY
2018
ANNUAL
REVENUE GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK MARKET CAP
INDEX
RANK
Carrefour 91,456$ -2.9% 0.02 8.6 3.0% 1.9 20148 9
Dairy Farm International 11,749$ 6.0% 0.04 7.7 27.0% 7.1 7787 8
Koninklijke Ahold Delhaize N.V. 74,144$ 8.0% 0.04 15.3 13.0% 1.5 16269 3
Metro AG 14,383$ 2.9% 0.06 12.3 15.0% 2.2 6602 2
Pick N Pay 6,174$ 1.3% 0.02 12.5 24.0% 0.9 241 7
Sainsbury 37,876$ 1.9% 0.03 21.8 6.0% 0.7 8644 10
Shoprite Supermarkets 11,366$ 6.9% 0.05 7.3 22.0% 3.1 5014 5
Tesco PLC 75,736$ -2.3% 0.02 19.6 1.0% 1.6 30891 6
The Kroger Company 122,662$ 5.5% 0.03 13.9 8.0% 4.1 23653 1
Weis Markets Inc. 3,509$ 3.8% 0.03 8.6 9.0% 1.5 1256 4
MEAN WITH OUTLIERS 44,906$ 3.1% 0.03 12.76 12.8% 2.5 12050
MEAN WITHOUT OUTLIERS 3.1% 0.03 12.76 12.8% 1.9 12050
2010-2018
COMPANY
2018
ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET CAP
INDEX
RANK
Aero Grow International 32$ 6.6% -0.12 3.8 -125% 25.5 39 5
American Woodmark Corporation 1,250$ 10.6% 0.03 17.1 5% 3.3 885 7
Haverty 818$ 3.8% 0.04 3.5 7% 1.5 437 2
Lowe's Companies Inc. 68,619$ 4.0% 0.08 3.9 11% 6.9 56,426 4
Lumber Liquidators Hldgs 1,085$ 8.3% 0.02 2.4 2% 4.1 1,034 6
The Home Depot Inc. 100,904$ 4.0% 0.11 4.7 20% 35.4 135,048 3
Tile Shop Holdings 357$ 11.6% 0.13 1.0 -1% 9.1 560 1
MEAN WITH OUTLIERS 24,724$ 6.5% 0.04 5.5 -9.3% 10.9 24,306
2010-2018

Restaurants
In this analysis, no company in the restaurant peer group meets the criteria for the Supply Chains to
Admire. Over the past six years of analysis, there has never been a winner in the restaurant industry.
Overall, the industry practices are evolving with no clear leader in supply chain management.
Discrete Industry Overview
Peer groups within the discrete industry are configure-to-order, make-to-order or assemble-to-order
businesses. The focus is on assembly and bill of material management. Discussions focus on work-
in-process inventories and backorder management. These industries have a strong dependency on
outsourced manufacturing buoying ROIC. In these industries, historically, procurement drove supply
chain processes.
Aerospace and Defense Industry
For the first time, Aerospace and Defense manufacturer, Lockheed Martin, places as a winner in the
Supply Chains to Admire analysis. Particularly problematic for the industry are growing inventory
levels due to contract obligations.
COMPANY
2018
ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET CAP
INDEX
RANK
BJ's Restaurants Inc. 1,117$ 11% 0.06 84.1 9% 3.2 1017 6
Brinker International Inc. 3,135$ 0% 0.09 67.8 17% 88.2 2409 16
Cheesecake Factory Inc. 2,332$ 4% 0.08 34.9 19% 3.8 2167 8
Chipotle's Mexican Grill Inc. 4,865$ 14% 0.13 194.7 19% 8.5 12213 14
Cracker Barrel Old Country Store Inc. 3,030$ 3% 0.08 15.5 16% 5.7 2739 1
Darden Restaurants Inc. 8,080$ 2% 0.08 24.2 13% 4.0 7833 11
Denny's Corporation 630$ 1% 0.11 117.7 26% 156.4 689 10
Domino's Pizza Enterprises Ltd. 3,433$ 17% -0.06 11.5 14% 9.3 1796 13
Dunkin Brands Group Inc. 1,322$ 5% 0.41 0.0 6% 4.3 4000 5
Jack in the Box Inc. 870$ -10% 0.13 154.2 12% 21.5 2177 19
McDonald's Corporation 21,025$ -1% 0.32 167.9 19% 5.2 104438 18
Nathan's Famous Inc. 104$ 9% 0.20 70.2 14% 2.3 224 15
Papa John's International 1,573$ 4% 0.07 44.0 22% 14.2 1717 11
Post Holdings Inc. 6,257$ 29% 0.12 6.9 -2% 1.1 2758 3
Red Robin Gourmet Burgers Inc. 1,339$ 5% 0.04 37.6 5% 1.9 668 9
Restaurant Brands International 5,357$ 26% 0.31 13.6 2% 3.6 6165 4
Starbucks Corporation 24,720$ 11% 0.15 9.9 28% 17.3 61187 2
Texas Roadhouse Inc. 2,457$ 11% 0.08 75.0 14% 3.5 2408 6
Wendy's Company 1,590$ -4% 0.12 196.9 4% 3.3 2938 20
Yum Brands Inc. 5,688$ -5% 0.21 37.6 31% 8.9 22819 17
MEAN WITH OUTLIERS 4,946$ 7% 0.14 68.2 14% 18.3 12118
MEAN WITHOUT OUTLIERS 7% 0.14 68.2 14% 6.7 3172
2010-2018

Apparel
With the continual shift in low-cost country sourcing, the pressure for ethical practices and the
evolution of the circular economy, apparel manufacturers continually innovate.
Apparel Manufacturer, Capri Holdings LTD, places as a winner in the Supply Chains to Admire
analysis for 2019. Capri Holdings, LTD is the new name for the Michael Kors/Versace merger.
Michael Kors was a winner in 2018.
For the rest of the years, the award was given to a variety of companies. Ralph Lauren won in 2014.
Nike was a winner in 2017, 2015 and 2014.
In this analysis, Steve Madden is of note. The Company met the improvement and performance
criteria but did not achieve the value ranking threshold to make the listing for the Supply Chains to
Admire 2019.
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO BOOK MARKET CAP
INDEX
RANK
AAR Corporation 1,748$ 3% 0.05 3.3 4% 1.2 1061 23
AIRBUS Group 75,226$ 3% 0.04 2.0 12% 4.7 47756 1
Astronics 803$ 20% 0.12 4.0 12% 4.1 885 7
BAE Systems 22,443$ -4% 0.15 8.3 12% 4.4 20940 6
BOEING 101,127$ 5% 0.08 1.7 38% 90.7 100499 13
Bombadier 16,236$ -1% 0.04 2.7 -10% 2.8 5649 20
BWX Technologies 1,800$ -2% 0.10 20.8 2% 10.3 3144 28
Ducommun 629$ 6% 0.05 4.2 0% 1.1 260 21
Embraer 5,407$ -1% 0.07 2.0 3% 1.4 5016 17
General Dynamics 36,193$ 2% 0.12 4.8 15% 3.3 39547 14
Heico 1,778$ 14% 0.19 3.0 11% 4.5 3840 11
Hexcel Corporation 2,189$ 8% 0.16 4.8 3% 3.4 3860 5
Huntington Ingalls Industries 8,176$ 2% 0.09 21.7 12% 3.6 5180 4
Kaman Aircraft 1,875$ 6% 0.06 3.4 7% 2.2 1137 22
L3 Technologies 10,244$ -4% 0.10 27.2 7% 1.9 10113 27
Lear Corporation 21,149$ 9% 0.06 17.8 18% 2.3 7340 15
Leonardo 14,453$ -6% 0.04 1.3 0% 1.1 5503 25
Lockheed Martin 53,762$ 3% 0.11 13.7 31% 105.9 54866 9
Magellan Aerospace Corporation 967$ 4% 0.10 4.3 10% 1.1 632 11
National Presto Industries 323$ -4% 0.16 3.3 13% 1.9 644 26
Northrop Grumman 30,095$ -1% 0.12 27.9 14% 4.1 30360 19
Raytheon 27,058$ 1% 0.14 41.2 15% 3.1 32280 18
Spirit AeroSystems Holdings 7,222$ 7% 0.07 3.2 9% 3.4 5661 2
TAT Technologies 93$ 2% 0.02 2.0 0% 0.7 61 3
TransDigm Group 3,811$ 20% 0.40 2.1 7% 2.6 10238 16
Ultra Electronics Hldgs 1,023$ 20% 0.12 8.3 11% 1.1 560 24
United Technologies 66,501$ 3% 0.14 4.8 12% 3.1 87490 7
Woodward 2,326$ 6% 0.12 3.2 9% 3.0 3438 9
2010-2018

Automotive
Over the last decade, automotive manufacturers improved cost but failed to drive improvement on the
balanced scorecard of growth, cost, inventory and asset utilization. The reason? Many of the cost
gains were at the expense of the second and third-tier partners.
For the period of 2010-2018, there are no winners in the Supply Chains to Admire analysis in the
automotive industry in 2014-2015, Audi won the Supply Chains to Admire award. For the period of
2016-2018, Audi met the performance criteria but failed to drive the required level of improvement. It
is hard to beat peer group performance while sustaining year-over-year improvement.
COMPANY
2018
ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET CAP
INDEX
RANK
Adidas 25,877$ 7% 0.08 2.91 12% 3.5 24580 3
Belluna Company 1,459$ 4% 0.06 2.96 5% 0.4 325 4
Bosideng International 1,345$ 11% 0.13 2.57 9% 0.7 877 19
Capri Holdings LTD. 4,719$ 31% 0.22 2.81 31% 6.8 8512 1
Colombia Sportswear 2,802$ 10% 0.09 2.73 10% 2.4 3273 2
Crocs 1,088$ 7% 0.05 3.56 8% 3.8 1171 14
Deckers Outdoors 1,903$ 11% 0.12 2.92 14% 3.0 2561 26
Fossil Group 2,541$ 7% 0.12 2.52 12% 3.4 3498 24
Gildan Activewear 2,909$ 13% 0.14 2.4 15% 3.1 5531 18
Hanes Brands 6,804$ 6% 0.11 2.13 10% 5.7 6450 5
Hennes & Mauritz AB 24,402$ 7% 0.15 3.14 35% 6.0 40524 24
Hugo Boss 3,302$ 5% 0.16 1.81 27% 4.3 2278 10
Inditex 26,145$ 5% 0.14 3.35 21% 3.7 44383 28
Interface Inc 1,180$ 4% 0.10 3.95 7% 3.5 1133 12
Moet Louis Vuitton 55,265$ 10% 0.20 1.23 13% 3.3 98602 16
Moncler 1,677$ 13% 0.27 1.73 17% 4.7 3179 8
Nike 36,397$ 7% 0.13 4.02 22% 7.0 77065 20
Puma 5,489$ 6% 0.06 2.91 7% 0.6 1588 13
PVH 8,915$ 19% 0.08 3.22 6% 1.9 7698 15
Ralph Lauren 6,182$ 3% 0.13 3.33 13% 3.1 11355 9
Skechers 4,663$ 15% 0.06 2.92 9% 2.0 2758 10
Steve Madden 1,654$ 15% 0.14 9.39 19% 3.2 2052 21
Under Armour 5,193$ 23% 0.09 2.66 11% 1.4 2685 22
Unifirst 1,696$ 6% 0.12 11.31 9% 1.8 2152 7
Vera Bradley 455$ 8% 0.13 1.98 24% 6.5 801 22
VF Corporation 3,045$ 6% 0.12 3.44 4% 4.7 22873 27
Wacoal Holdings Corporation 1,767$ 1% 0.05 2.35 4% 0.7 1460 5
Wolverine World Wide 2,239$ 10% 0.10 3.84 9% 2.9 2397 17
MEAN WITH OUTLIERS 8,611$ 10% 0.12 3.4 13.7% 3.4 13,634
MEAN WITHOUT OUTLIERS 9% 0.12 2.8 13.7% 3.4 5,049
2010-2018

Automotive Parts
Over the last decade, this industry managed increased complexity to drive continuous improvement in
cost. In parallel, inventory turns improved during the period of 2010-2016 but slipped due to
pressures from tier-one manufacturers during the period of 2017-2018. In the Supply Chains to
Admire 2018 analysis, Borg Warner and Continental AG make the winners circle for the first time. In
prior years, Autoliv was a winner in 2017.
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET CAP
INDEX
RANK
Audi AG 69,963$ 6% 0.10 7.9 21% 0.9 23099 19
Bayerische Motoren Werke AG 115,105$ 6% 0.10 6.4 5% 1.4 12716 12
BYD - Build Your Dream 19,673$ 15% 0.06 5.0 3% 2.6 12716 8
Daimler AG 197,623$ 7% 0.07 5.0 7% 1.3 74929 14
Ferrari NV 4,039$ 4% 0.14 3.2 10% 12.0 8427 1
Fiat Chrysler Automobiles NV 130,376$ 14% 0.04 7.6 4% 0.5 11892 7
Ford Motor Company 160,338$ 4% 0.05 15.4 6% 2.3 51643 21
General Motors Company 147,049$ 4% 0.03 10.1 9% 1.4 50304 18
Honda Motor Co Ltd. 138,641$ 4% 0.05 7.3 4% 1.0 59766 10
Isuzu Motors Ltd. 18,686$ 4% 0.08 8.0 10% 1.4 9007 5
Mazda Motor Corporation 31,355$ 3% 0.03 7.2 3% 0.8 5362 13
Mitsubishi Motors Corporation 68,299$ 2% 0.05 4.8 4% 0.7 35591 16
Nissan Motor Co Ltd. 107,865$ 3% 0.06 7.6 4% 0.7 29374 9
Peugeot SA 87,412$ 4% 0.03 8.8 2% 0.5 6693 5
Renault SA 67,801$ 5% 0.05 8.4 4% 0.4 13685 20
Subaru 30,734$ 9% 0.10 7.1 15% 2.1 19471 11
Suzuki Motor Corporation 33,911$ 2% 0.06 7.8 5% 0.2 2391 4
Tata Motors Ltd. 44,717$ 13% 0.07 5.4 9% 2.7 18565 17
Tesla Inc. 21,461$ 98% -0.44 3.1 -2% 19.6 25731 3
Toyota Motor Corporation 265,163$ 3% 0.06 11.0 4% 1.2 167254 2
Volkswagen AG 278,493$ 8% 0.05 5.2 6% 0.8 76498 15
MEAN WITH OUTLIERS 97,081$ 10% 0.04 7.3 6.4% 2.6 34053
MEAN WITHOUT OUTLIERS 6% 0.06 7.3 6.4% 1.2 22492
2010-2018

B2B Technology
In this tough industry, for 2019, Apple is the Supply Chain to Admire award winner. While
performance is slipping at Apple, the Company still outperforms its peer group. Apple is an award
winner for four consecutive years. Prior award winners included Western Digital in 2017 and Seagate
was an award winner in 2014.
COMPANY
2018
ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET CAP
INDEX
RANK
Advance Auto Parts 9,581$ 8% 0.09 1.3 18% 4.6 8651 32
Aisin Seiki Co Ltd. 35,280$ 6% 0.07 12.0 5% 0.5 4792 35
Allison Transmission Holdings Inc. 2,713$ 5% 0.25 6.7 8% 4.3 4062 1
American Axle & Manufacturing 7,270$ 20% 0.09 13.3 14% 7.0 1317 30
Autoliv Inc. 8,678$ 7% 0.09 10.0 11% 1.9 6150 33
AutoZone Inc. 11,221$ 6% 0.19 1.5 40% 0.0 17674 22
BorgWarner Inc. 10,530$ 12% 0.12 11.4 12% 2.9 9386 16
Commercial Vehicle Group 898$ 9% 0.04 8.3 6% 5.2 233 6
Continental AG 52,433$ 8% 0.10 8.3 12% 2.5 33972 12
Cooper-Standard Holdings Inc. 3,629$ 8% 0.06 15.3 7% 1.4 1080 4
Dana Inc 8,143$ 6% 0.07 7.9 10% 2.8 2717 5
Danaher Corporation 19,893$ 8% 0.16 4.5 9% 2.0 44751 25
Delphi Automotive PLC 4,858$ 1% 0.06 3.9 6% 0.9 657 3
Denso Corporation 46,105$ 5% 0.08 8.5 6% 1.0 25841 15
Dorman Products Inc. 974$ 11% 0.18 2.6 20% 3.6 1731 21
Douglas Dynamics 524$ 16% 0.16 4.4 7% 2.6 524 10
Gentex Corporation 1,834$ 15% 0.27 5.1 18% 3.3 4753 19
Gentherm Inc. 1,038$ 48% 0.10 7.2 13% 3.6 963 34
Johnson Controls 31,400$ 6% 0.07 10.7 6% 1.7 24732 17
JTEKT Corporation 13,007$ 4% 0.04 6.5 4% 0.4 1743 18
Koito Manufacturing Co Ltd. 7,661$ 8% 0.09 10.0 10% 0.7 2425 7
LKQ Corporation 11,877$ 22% 0.10 2.7 8% 2.9 7886 22
Mabuchi Motor Co Ltd. 1,296$ 6% 0.12 3.3 6% 0.6 1195 8
Magan International 40,827$ 11% 0.06 10.9 16% 1.7 15649 13
Meritor Inc. 4,178$ 5% 0.05 8.5 45% 1.3 1197 11
Motorcar Parts of America 428$ 14% 0.14 3.3 3% 1.9 345 22
Nexteer Automotive Group Ltd. 3,912$ 7% 0.07 9.3 11% 0.2 404 2
NGK Spark Plug Co Ltd 3,700$ 3% 0.13 3.2 8% 0.1 462 14
O'Reilly Automotive 9,536$ 8% 0.17 1.4 24% 18.3 17869 9
PT Astra International Tbk 16,818$ 8% 0.10 9.5 12% 2.5 18802 28
Stanley Electric Co Ltd. 3,991$ 4% 0.11 10.7 8% 0.5 1460 27
Tenneco Inc. 11,763$ 11% 0.05 9.2 12% 61.9 2736 36
The Timken Company 3,581$ 3% 0.11 3.5 11% 1.9 3202 20
Toyoda Gosei Co Ltd. 7,283$ 3% 0.06 12.9 5% 0.2 615 37
Valeo SA 22,582$ 9% 0.07 10.9 11% 2.4 8857 28
Visteon Corporation 2,984$ -2% 0.05 13.4 19% 3.3 3409 31
WABCO Holdings Inc 3,831$ 12% 0.13 8.8 25% 6.7 5301 26
2010-2018

Consumer Durables
For the period of 2010-2018, there are no Supply Chains to Admire Award Winners in the peer group
of Consumer Durables. iRobot while meeting the performance targets, but fails to meet the
improvement targets. There has never been an award winner from the Consumer Durables peer
group in the Supply Chains to Admire Analysis.
COMPANY
2018 Annual
Revenue GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL PRICE TO BOOK MARKET CAP
INDEX
RANK
Alps Electric Co Ltd. 7,747$ 4% 0.05 7.28 5.0% 1.2 2501 2
Ambarella 295$ 18% 0.18 5.93 -1.0% 3.7 1049 24
Apple Inc. 265,595$ 25% 0.29 59.67 31.0% 5.05 598634 26
Bang & Olufsen A/S 526$ 1% -0.06 3.55 -2.0% 0.39 96 11
Eastman Kodak Company 1,325$ -17% -0.02 4.56 28.0% 1.81 420 21
EnerSys Manufactures 2,582$ 4% 0.11 4.91 10.0% 2.26 2536 5
Funai Electric Company Ltd. 1,174$ -9% -0.02 4.9 -9.0% 0.07 48 28
GoPro Inc. 1,148$ 0% 0.00 4.1 -2.0% 2.69 1498 14
Hewlett Packard 58,472$ -5% 0.08 10.83 25.0% 0.57 27546 8
Hewlett Packard Enterprise Company 30,852$ -6% 0.05 8.89 2.0% 0.34 8804 6
JVC Kenwood Corporation 2,714$ 0% 0.02 5.98 -1.0% 0.08 44 25
Lenovo Group 45,350$ 14% 0.02 15.68 12.0% 3.26 9000 18
LG Display Co Ltd. 22,080$ 5% 0.03 9.88 4.0% 0.89 9167 22
LG Electronics 54,400$ 4% 0.23 5.83 3.1% 1.09 1
Logitech International 2,567$ 2% 0.06 5.64 9.0% 3.33 2987 4
LSI Industries 342$ 4% 0.02 5.06 1.0% 1.28 188 19
NCR 6,405$ 4% 0.07 6.09 5.0% 4.31 3883 15
Nintendo Co Ltd. 9,528$ -1% 0.06 5.47 5.0% 1.92 23760 27
Samsung 220,000$ 7% 0.15 7.13 15.3% 1.41 7
Seagate 11,184$ 2% 0.13 9.94 23.0% 5.69 12286 10
Seiko Epson Corporation 9,947$ -1% 0.06 3.81 7.0% 12
Sharp Corporation 21,907$ -2% 0.00 7.41 -11.0% 2.2 7676 3
Sony Corporation 77,113$ 0% 0.03 8.55 -1.0% 1.22 32351 9
TPV Technology Ltd 9,148$ 2% 0.01 7.77 2.0% 0.15 238 16
Truly International Holdings Limited 2,521$ 17% 0.07 8.81 6.0% 0.46 417 23
Universal Electronics Inc. 680$ 9% 0.05 3.71 6.0% 2.16 589 20
Western Digital Corp. 20,647$ 14% 0.13 8.23 12.0% 1.71 15426 17
Xerox 9,830$ -2% 0.1 10.3 3.0% 0.82 7553 12
MEAN WITH OUTLIERS 32,003$ 3% 0.07 8.99 6.8% 1.88 31925
MEAN WITHOUT OUTLIERS 5% 0.06 6.90 6.8% 185.0% 31925
2010-2018
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET CAP
INDEX
RANK
Armstrong World Industries 975$ -8% 0.12 6.3 7% 5.2 2,519 2
Breville Group 505$ 5% 0.11 3.83 21% 1.1 233 5
Canon 35,780$ 1% 0.09 3.76 8% 0.8 22,767 10
Compagnie de Saint-Gobain SA 49,327$ 0% 0.07 5.13 4% 0.7 13,516 4
Electrolux AB 14,302$ 0% 0.04 6.93 10% 3.2 7,277 6
Haier Electronics Group Co Ltd. 12,896$ 32% 0.04 14.92 24% 3.9 5,093 13
Hamilton Beach Brands Holding Company 743$ 0% 0.02 1.35 4% 1.8 75 1
iRobot Corporation 1,093$ 16% 0.09 6.2 13% 3.4 1,231 11
Koninkijke Philipis 21,397$ -4% 0.06 3.59 4% 1.9 28,147 8
Panasonic Corporation 72,043$ 0% 0.03 6.95 -1% 1.4 24,485 7
Pioneer Corporation 3,298$ -5% 0.01 6.1 -3% 0.0 23 12
Stanley Black and Decker Inc. 13,982$ 19% 0.12 4.47 7% 2.3 15,484 3
Whirlpool Corporation 21,037$ 2% 0.06 6.36 6% 2.3 9,947 8
MEAN WITH OUTLIERS 19,029$ 4% 6.6% 5.84 8.0% 2.2 10,061
MEAN WITHOUT OUTLIERS 2% 6.6% 5.08 8.0% 2.2 10,061
2010-2018

Contract Manufacturers
In the six-year history of doing the analysis, there are no Supply Chains to Admire Award winners in
the contract manufacturing peer group. Facing tight margins, rising demand volatility and price
escalations, it is a tough business.
Diversified Industries
Diversified industries are discrete conglomerates. For the Supply Chains to Admire analysis for 2019,
there are no winners. Prior winners include Rockwell Automation in 2018 and Honeywell for the two
consecutive years of 2018 and 2017. Rockwell met the criteria for improvement and performance but
failed the value test.
COMPANY
2018
ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET CAP
INDEX
RANK
Benchmark Electronics Inc. 2,566$ 3% 0.03 6.43 5% 0.92 1,138 7
Celestica Inc. 6,633$ 1% 0.03 7.14 8% 1.25 1,655 5
Flex Ltd. 25,441$ -1% 0.02 7.28 8% 0.08 5,841 1
Ibiden Co Ltd. 2,711$ -1% 0.06 6.74 1% 0.01 250 11
IEC Electronics 117$ 8% 0.03 5.62 2% 0.02 50 8
IEH Corporation 23$ 9% 0.17 2.00 17% 0.17 15 6
Jabil Circuit Inc. 22,095$ 8% 0.03 6.61 7% 0.07 4,156 3
Kimball International 686$ -3% 0.03 8.01 9% 0.09 416 2
Plexus Corporation 2,874$ 7% 0.05 4.10 8% 0.08 1,395 8
Sigmatron International 278$ 9% 0.02 3.26 2% 0.02 24 10
TTM Technologies Inc. 2,847$ 23% 0.07 9.25 2% 0.02 877 4
MEAN WITH OUTLIERS 6,025$ 5.7% 0.05 6.04 6% 0.25 1,438
MEAN WITHOUT OUTLIERS 5.7% 0.04 6.04 6% 0.06 998
2010-2018
COMPANY
2018
ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET CAP
INDEX
RANK
ABB Limited 27,662$ -1% 0.10 4.71 11% 3.13 48071 26
Actuant Corporation 1,183$ 1% 0.12 4.84 2% 2.29 1,722 25
AMETEK Inc. 4,846$ 10% 0.22 5.15 12% 3.75 11,532 10
Avery Dennison Corporation 7,159$ 2% 0.08 8.73 11% 4.81 5,600 14
Dover Corporation 6,992$ 3% 0.14 5.52 11% 2.73 11,105 19
Eaton 21,609$ 8% 0.11 5.88 9% 1.95 27,038 7
Emerson Electric 17,408$ -1% 0.17 6.38 14% 4.3 39,508 11
Fanuc Corporation 6,558$ 12% 0.35 3.04 12% 2.83 33,400 7
Flowserve Corporation 3,833$ -1% 0.11 3.16 11% 3.6 6,685 24
Fortive Corporation 6,453$ 1% 0.15 3.86 11% N/A N/A 1
Generac Holdings 2,023$ 16% 0.17 2.85 11% 0.11 2,575 4
Hillenbrand Inc. 1,770$ 13% 0.13 6.42 10% 0.1 1,960 18
Honeywell 41,802$ 3% 0.13 6.45 14% 0.14 72,817 3
Hubbell Incorporated 4,482$ 8% 0.15 5.11 12% 0.12 4,204 15
Ingersoll-Rand PLC 15,668$ 2% 0.10 6.90 9% 0.09 15,945 5
Legrand SA 7,082$ 4% 0.19 3.50 11% 0.11 6,077 6
MDU Resources Group Inc. 4,532$ 1% 0.09 12.63 3% 0.03 4,594 23
Morgan Advanced Materials 1,379$ 0% 0.11 1.64 10% 0.1 252 2
MSC Industrial Direct Co Inc. 3,204$ 9% 0.15 3.31 17% 0.17 4,648 11
Parker Hannifin 14,302$ 4% 0.11 6.97 12% 0.12 17,044 17
Regal Beloit Corp 3,646$ 8% 0.10 3.7 6% 0.06 2,961 20
Rockwell Automation Inc. 6,666$ 5% 0.17 6.17 21% 0.21 15,315 13
Schneider Electric 30,370$ 4% 0.14 4.95 7% 0.07 39,384 7
Toshiba 35,629$ -7% 0.04 5.76 -1% -0.01 15,773 16
Trinity Industries Inc. 2,509$ 5% 0.15 4.23 6% 0.06 3,592 21
Valmont Industries Inc. 2,757$ 6% 0.10 5.54 9% 0.09 3,027 21
MEAN WITH OUTLIERS 10,828$ 4.4% 0.14 5.28 10.0% 1.24 15,793
MEAN WITHOUT OUTLIERS 4.4% 0.14 5.31 10.0% 1.16 14,448
2010-2018

Furniture
In the last three years, the industry reduced costs but did not improve overall performance. Supply
Chains to Admire Award Winners include Herman Miller, Leggett & Platt and Sleep Number. Herman
Miller is a winner for three consecutive years. Leggett and Platt was a winner in 2017 while Steelcase
was a winner in 2016.
Medical Device
In this year’s analysis, the winner for medical device industry is Intuitive Surgical, a robotic manufacturer for
surgery. Prior winners in this industry were Coloplast in 2015, Edwards in 2016, Becton Dickinson in 2017, and
Res Med in 2018. The shifts in the industry reflect industry immaturity as various companies rise and fall
without maintaining a consistent advantage over their peer group/
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET CAP
INDEX
RANK
Bassett Furniture Industry 457$ 8% 0.04 2.87 11% 0.1 206 16
Ethan Allen Interiors 767$ 2% 0.07 2.27 7% 0.1 760 17
Flexsteel Industries 489$ 5% 0.06 3.58 10% 0.1 243 3
Herman Miller 2,381$ 5% 0.07 13.6 13% 0.1 1,690 10
HNI Corporation 2,258$ 4% 0.06 12.2 10% 0.1 1,691 4
Hooker Furniture 621$ 15% 0.06 4.34 7% 0.1 258 2
Howden Joinery Group 2,016$ 6% 0.16 2.79 19% 0.2 1,140 6
Hunter Douglas 3,664$ 5% 0.07 2.54 9% 0.1 460 1
Knoll Inc. 1,302$ 6% 0.09 5.57 12% 0.1 929 5
La-Z-Boy 1,584$ 3% 0.06 5.69 12% 0.1 1,152 6
Leggett & Platt 4,270$ 4% 0.10 5.82 11% 0.1 4,865 8
Libbey Inc. 801$ 1% 0.07 3.84 2% 0.0 360 14
NACCO Industries 135$ -16% -0.12 3.02 10% 0.1 127 11
Natuzzi 506$ -4% -0.04 3.45 -8% -0.1 109 18
Sleep Number 1,532$ 12% 0.08 8.35 46% 0.5 1,151 12
Steelcase 3,056$ 0% 0.05 13.43 7% 2.4 1,724 9
Tempur Sealy 2,703$ 16% 0.14 8.11 13% 23.4 3,189 13
2010-2018

Telecommunications
In the telecommunications market, Ubiquiti Networks wins the 2019 Supply Chains to Admire award for the
third consecutive year. Cisco Systems, a winner in the 2014-2017 periods fails to make the winner circle
criteria based on underperformance on growth against a peer group.
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET CAP
INDEX
RANK
Abiomed Inc. 594$ 26% 0.06 2.29 9% 0.1 3986 30
Ansell Ltd. 1,560$ 6% 0.04 3.12 12% 0.1 1089 7
Becton Dickinson and Company 15,983$ 10% 0.18 3.12 10% 0.1 30963 7
Bio-Rad Laboratories Inc. 2,289$ 3% 0.09 1.91 5% 0.1 4347 22
Boston Scientific 9,823$ 2% 0.14 2.51 -3% 0.0 21992 23
Bruker Corporation 1,896$ 7% 0.11 1.83 10% 0.1 3486 11
Charles River Laboratories International Inc. 2,266$ 8% 0.14 9.17 5% 0.1 3189 16
Coloplast 2,629$ 6% 0.3 3.33 39% 0.4 7531 3
ConvaTec Group PLC 1,832$ 1% 0.09 2.1 0% 0.0 994 1
Dentsply 3,986$ 8% 0.14 3.32 3% 0.0 8346 31
Edwards Lifesciences 3,723$ 12% 0.24 1.82 19% 0.2 15700 9
Fisher & Paykel Healthcare Corp Ltd. 701$ 9% 0.18 2.7 20% 0.2 602 17
Hill-Rom Holdings Inc. 2,848$ 9% 0.11 6.12 8% 0.1 3282 14
Hologic Inc. 3,218$ 8% 0.15 4.14 1% 0.0 8256 4
Intuitive Surgical Inc. 3,724$ 16% 0.35 4.15 17% 0.2 24728 28
Medtronic 29,953$ 9% 0.25 2.4 9% 2.5 76384 27
Mettler-Toledo International Inc. 2,936$ 6% 0.2 4.88 26% 14.6 9028 4
MicroPort Scientific Corporation 669$ 31% 0.17 1.31 6% 1.0 408 26
PerkinElmer Inc. 2,778$ 7% 0.11 4.29 6% 2.4 5320 12
ResMed Inc. 2,340$ 11% 0.23 3.15 15% 4.7 8238 10
Smith and Nephew 4,904$ 3% 0.21 1.06 13% 3.4 13138 25
Stryker 13,601$ 8% 0.21 2 12% 3.8 35676 20
Teleflex Inc. 2,448$ 4% 0.17 2.53 5% 2.7 5763 21
Terumo Corporation 5,305$ 7% 0.16 2.53 8% 1.8 8361 19
The Cooper Companies Inc. 2,533$ 10% 0.18 1.82 7% 2.6 6931 12
Thermo Fisher Scientific Inc. 24,358$ 11% 0.13 4.76 6% 2.3 47835 6
Varian Medical Systems Inc. 2,919$ 3% 0.19 3.34 20% 5.0 7844 15
Waters Corporation 2,420$ 6% 0.28 3.32 15% 5.8 10008 18
West Pharmaceutical Services Inc. 1,717$ 6% 0.12 5.31 9% 3.9 4102 2
Wright Medical Group NV 836$ 19% -0.16 0.89 -21% 2.6 1577 23
Zimmer Biomet Holdings 7,933$ 8% 0.22 1.08 6% 2.2 17071 29
2010-2018

Semiconductor Industry
Sitting back three and four levels deep in the supply chain, for a semiconductor company to survival, they must be good
at supply chain management. Broadcom wins the Supply Chains to Admire award for the three consecutive years. Prior
year’s winner for 2016, Taiwan Semiconductor (TSMC) does not make the winner’s circle due to the decline in the rate
of improvement.
COMPANY
2018
ANNUAL
REVENUE GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL PRICE TO BOOK MARKET CAP
INDEX
RANK
Adtran 529$ 2.0% 0.09 3.37 8.0% 1277.9 2.86 19
Avnet 19,037$ 4.0% 0.03 7.73 8.0% 5130.7 1.17 14
Belden 2,585$ 8.0% 0.08 6.30 6.0% 2414.5 2.58 4
Cisco Systems Inc. 49,330$ 4.0% 0.23 11.79 11.0% 138833.0 2.57 7
EchoStar Group 2,091$ 3.0% 0.09 24.56 3.0% 3774.8 1.06 15
Ericsson 24,293$ -1.0% 0.05 5.35 1.0% 31486.6 1.82 16
Fabrinet 1,372$ 15.0% 0.08 5.19 12.0% 922.4 1.92 9
Finisar Corporation 1,316$ 13.0% 0.05 3.12 5.0% 2154.9 2.33 17
Harris 6,182$ 4.0% 0.18 4.61 12.0% 9602.3 3.73 11
Juniper Networks 4,648$ 4.0% 0.15 23.88 6.0% 11328.1 1.99 8
Motorola Solutions 7,343$ -6.0% 0.13 8.59 13.0% 14855.3 2.04 2
Nokia Oyj 26,643$ -2.0% 0.05 6.66 2.0% 27281.2 1.96 20
Rogers Communications Inc . 11,649$ 2.0% 0.23 28.06 9.0% 5232.0 0.98 10
Skyworth Digital Holdings Ltd. 4,567$ 14.0% 0.05 6.45 10.0% 86.4 0.04 11
Sprint Corp 32,406$ 21.0% 0.02 14.69 -4.0% 21179.3 1.14 21
TELUS Corp 14,095$ 4.0% 0.19 15.48 8.0% 22925.5 2.81 3
Ubiquiti Networks 1,017$ 41.0% 0.29 11.83 39.0% 3259.4 12.94 5
Vodafone Group PLC. 54,713$ -1.0% 0.11 62.69 8.0% 86869.9 0.82 18
Vtech 2,130$ 4.0% 0.12 4.74 32.0% 2618.8 5.06 6
Zayo Group Holdings 2,604$ 30.0% 0.10 0.00 1.0% 4029.8 3.23 1
ZTE 12,936$ 5.0% 0.15 3.54 1.0% 9857.0 2.55 13
MEAN WITH OUTLIERS 13,404$ 8.0% 0.12 12.32 9.1% 19291.4 2.65
MEAN WITHOUT OUTLIERS 8.0% 0.12 9.80 9.1% 9443.0 2.13
2010-2018

Tires
Over the last decade, the tire industry chased cost. Inventory turns declined. For the period, in this
analysis, there are no Supply Chains to Admire winners for the tire industry. In prior years, Cooper
Tires was a winner in 2016 and Bridgestone in 2017. Each company has a unique definition of supply
chain strategy; each has pursued technology and process excellence projects over the last decade
attempting to drive differentiation. This has not occurred.
COMPANY
2018
Annual
Revenue GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK MARKET CAP
INDEX
RANK
Acacia 340$ 25.0% 0.07 3.73 1.0% 1.62 584.4 21
Advanced Semiconductor 12,303$ 23.0% 0.10 5.45 8.0% 0.13 870.3 26
Advanded Micro Devices 6,475$ 3.0% -0.01 5.36 -9.0% 9.79 6354.8 14
Analog Devices 6,201$ 15.0% 0.29 3.24 13.0% 3.36 19104.5 23
Applied Materials Inc 17,253$ 18.0% 0.19 3.29 14.0% 3.42 26581.6 5
Applied Optoelectronics 267$ 27.0% 0.03 2.42 4.0% 1.28 231.9 21
AXT 102$ 9.0% 0.08 1.51 5.0% 1.18 164.9 30
Broadcom 20,848$ 37.0% 0.20 6.04 16.0% 5.01 42214.2 7
Cabot Microelectronics 590$ 9.0% 0.19 3.51 11.0% 2.81 1431.2 6
ChipMOS Technologies 604$ 0.0% 0.09 8.14 6.0% 1.04 574.4 3
Cirrus Logic 1,532$ 30.0% 0.18 4.19 23.0% 2.07 1952.4 12
Cree 1,494$ 13.0% 0.06 3.82 1.0% 1.73 4256.2 33
Cypress Semiconductor 2,484$ 21.0% -0.02 4.51 -1.0% 5.29 3094.0 17
DAQO New Energy 302$ 24.0% 0.10 10.47 3.0% 0.96 252.1 29
Diodes 1,214$ 13.0% 0.09 3.25 5.0% 1.63 1198.4 20
Infineon Technologies AG 9,046$ 14.0% 0.13 3.85 15.0% 2.8 15632.1 11
Intel 70,848$ 8.0% 0.29 4.26 17.0% 2.6 156130.1 19
Lam Research Corporation 11,077$ 32.0% 0.18 3.47 14.0% 2.54 13149.2 10
Marvell Technology Products 2,409$ -1.0% 0.13 5.59 6.0% 1.62 7932.8 13
Maxim Integrated Products 2,480$ 5.0% 0.24 3.68 12.0% 4.6 10048.3 2
Microchip Technology Inc 3,981$ 20.0% 0.22 3.26 10.0% 4.27 10970.4 9
Micron Technology Inc. 30,391$ 28.0% 0.16 3.69 13.0% 1.62 22578.2 1
NVIDIA Corp 9,714$ 13.0% 0.16 5.13 13.0% 5.95 35448.8 35
NXP Semiconductor 9,407$ 13.0% 0.11 3.73 6.0% 7.76 18790.8 17
ON Semiconductor Corp 5,878$ 16.0% 0.10 3.18 7.0% 2.74 4894.4 27
Qualcomm 22,732$ 10.0% 0.24 6.50 12.0% 4.91 95800.2 32
Ricoh 18,623$ -1.0% 0.04 6.50 1.0% 2.44 24590.3 33
Semtech 588$ 9.0% 0.10 3.62 4.0% 3.06 1903.3 14
Silicon Laboratories Inc 868$ 8.0% 0.11 4.72 7.0% 3.06 2370.8 24
Skyworks Solutions Inc 3,868$ 20.0% 0.26 4.42 20.0% 3.38 9884.6 4
Taiwan Semiconductor 34,192$ 17.0% 0.37 7.33 22.0% 3.56 121277.2 25
Texas Instruments 15,784$ 5.0% 0.33 3.29 22.0% 5.72 58878.3 14
Tower Semiconductor 1,304$ 21.0% 0.05 7.65 1.0% 1.96 1056.1 27
United Microelectronics 5,014$ 8.0% 0.06 7.02 4.0% 0.78 5386.6 31
Xilinx 2,467$ 4.0% 0.3 3.56 15.0% 4.83 12734.1 8
MEAN WITH OUTLIERS 9,505$ 14.7% 0.15 4.7 9.2% 3.19 21094.9
MEAN WITHOUT OUTLIERS 14.7% 0.15 4.7 9.2% 3.19 11064.1
2010-2018

Trucks and Heavy Equipment
In the last three years, the industry reduced cost, but not overall performance. Paccar is the industry
winner for the Supply Chains to Admire analysis. This is the second year for Paccar to place in the
winner’s circle. Previously, United Tractors led the industry for 2017 and 2015 while Cummins Engine
outperformed in the 2016 analysis.
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK MARKET CAP
INDEX
RANK
Bridgestone 33,047$ 2% 0.12 4.05 9% 1.4 25450 2
Cooper Tire & Ruber 2,808$ 1% 0.09 5.99 14% 2.0 1677 4
Goodyear Tire & Rubber 15,475$ 0% 0.07 4.83 7% 2.9 5867 3
Michelin 26,011$ 3% 0.11 3.33 12% 0.8 9197 1
2010-2018
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK MARKET CAP
INDEX
RANK
Agco Corporation 9,352$ 5% 0.06 4.18 8% 1.5 4648 7
Caterpillar 54,722$ 8% 0.10 3.26 6% 4.1 61248 5
Cummins 23,771$ 10% 0.11 5.27 19% 3.3 22304 13
Deere & Company 37,021$ 6% 0.12 5.41 6% 4.4 35471 12
Hitachi Construction 84,556$ -2% 0.05 5.35 4% 0.3 5880 11
Hyster-Yale Materials Handling Inc 3,174$ 7% 0.03 5.67 11% 1.9 877 1
Komatsu 22,574$ 3% 0.11 2.48 7% 0.0 14878 6
Konecranes Oyj 3,727$ 7% 0.06 2.63 9% 0.8 847 9
Kubota 16,752$ 7% 0.11 3.53 6% 0.0 10788 14
Manitowoc 1,847$ -5% 0.05 3.62 -2% 1.0 615 15
Navistar 10,250$ -1% 0.02 7.32 -7% 0.0 2719 2
Oshkosh Truck 7,706$ 8% 0.08 6.43 12% 2.0 3837 17
PACCAR Inc 23,496$ 15% 0.10 18.3 8% 3.0 19916 3
Terex Corporation 5,125$ 5% 0.04 3.43 4% 1.7 2976 16
Textron Inc 13,972$ 3% 0.07 3.19 7% 2.3 10080 4
United Tractors 5,950$ 12% 0.15 5.72 16% 2.3 6163 10
Volvo AB 45,032$ 6% 0.07 5.16 6% 0.6 7442 7
2010-2018

Process Industry Overview
Beverages
Each of the beverage companies is in intense competition for a “share of the throat.” Interestingly, the
best performance in the peer group is a relative newcomer Monster Beverages. Historically, start-ups
and small companies have outperformed larger companies in this peer group.
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET
CAP
INDEX
RANK
Ambev 13,821$ 3% 0.39 4.38 21% 0.21 180868 25
Anheuser-Busch InBev 54,619$ 5% 0.31 5.99 7% 0.07 158926 18
Boston Beer Company 996$ 11% 0.15 7.44 26% 7.04 2330 23
Brown-Forman 3,248$ 3% 0.32 1.05 22% 10.49 17461 32
Carlsberg 9,901$ -1% 0.14 7.67 4% 1.58 13460 29
Coca-Cola 31,856$ 1% 0.24 5.48 12% 6.76 17777 24
Constellation Brands 7,580$ 11% 0.22 1.59 9% 3.20 20175 2
Craft Brewer Alliance 206$ 6% 0.02 9.01 3% 1.98 231 27
Crimson Wine Group 68$ 14% 0.07 0.47 2% 0.72 148 1
Davide Campari-Milano 2,021$ 4% 0.21 1.51 7% 2.02 4202 25
Diageo 16,425$ 1% 0.28 1.05 13% 6.52 71065 14
Keurig Dr Pepper 2,615$ 3% 0.19 11.20 12% 5.21 15180 31
Embotelladora Andina 26,534$ 11% 0.12 8.91 12% 3.14 3863 16
Heineken International 7,442$ 3% 0.13 7.87 7% 2.33 35472 8
Kirin Holdings 17,479$ -3% 0.08 5.88 5% 1.72 1440 6
Lassonde Industries Inc 1,594$ 14% 0.08 4.13 8% 2.32 986 7
Molson Coors Brewing 10,770$ 20% 0.12 9.61 6% 1.45 13027 19
Monster Beverage 3,807$ 14% 0.30 5.50 30% 9.09 18767 11
National Beverage 976$ 6% 0.13 10.29 38% 8.97 1820 4
PepsiCo 64,661$ 5% 0.15 9.34 15% 8.34 133461 17
Pernod Ricard 10,742$ 1% 0.25 0.69 6% 2.10 31418 9
Remy Cointreau 1,324$ 4% 0.18 0.40 7% 1.52 2231 12
Thai Beverage 7,103$ 11% 0.14 3.35 15% 3.58 10803 13
Tsingtao Brewery 4,020$ 5% 0.07 6.48 11% 3.44 7421 21
United Breweries 2,788$ 11% 0.15 4.15 14% 3.10 4533 20
Vitasoy International 828$ 10% 0.12 4.65 17% 6.32 1719 15
Willamette Valley 23$ 5% 0.17 0.62 6% 1.32 29 5
Yakult Honsha Company 3,624$ 3% 0.09 5.42 6% 1.12 3204 10
MEAN WITHOUT OUTLIERS 6% 0.17 5.15 12% 3.77 26,623
2010-2018

Chemical
Sitting three and four-levels back in the value chain, supply chain management is essential to a
chemical company’s success.
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET
CAP
INDEX
RANK
Air Products and Chemicals Inc. 8,930$ 1.0% 0.18 12.62 0.11 3.35 25499 5
Akzo Nobel 10,930$ -4.0% 0.08 5.26 0.1 2.01 16925 11
Albemarle Corporation 3,375$ 7.0% 0.19 3.92 0.1 2.98 7023 16
Amyris Inc. 80$ 18.0% -1.72 8.98 0.0869 48.81 379 44
Arkema SA 10,410$ 6.0% 0.1 0.49 0.06 1.6 6307 28
Asahi Kasei Corp 18,432$ 2.0% 0.07 4.23 0.07 1.2 11504 18
Ashland Global Holdings 3,743$ -6.0% 0.04 4.83 0.03 0.97 3383 23
Axalta Coating Systems Ltd 4,696$ 1.0% 0.08 4.00 0 3.07 3585 3
BASF 74,007$ 2.0% 0.1 4.90 0.11 2.36 80081 37
Cabot 3,242$ 5.0% 0.09 5.71 0.05 1.91 2804 21
Celanese Corporation 7,155$ 4.0% 0.12 6.41 0.12 4.42 9499 6
CF Industries Holdings 4,429$ 9.0% 0.29 10.97 0.11 2.57 10506 35
Covestro 17,259$ 2.0% 0.07 3.98 0.1 0.94 4912 1
DowDupont Inc. 60,278$ 9.0% 0.09 5.32 0.07 1.46 46988 7
Eastman Chemical 10,151$ 10.0% 0.15 5.39 0.11 2.88 9992 33
Ecolab 14,668$ 12.0% 0.14 5.40 0.09 4.84 28696 13
Evonik Industries 17,740$ 3.0% 0.11 5.50 0.11 0.37 3418 24
FMC 4,728$ 8.0% 0.15 3.25 0.11 4.07 7005 18
Givaudan 5,650$ 5.0% 0.16 3.15 0.11 4.29 14903 10
H.B. Fuller 3,041$ 11.0% 0.08 6.52 0.07 2.21 1986 8
Hitachi Chemical 6,040$ 3.0% 0.07 7.77 0.07 0.35 1131 16
Huntsman Corporation 9,379$ 3.0% 0.08 5.53 0.05 2.44 4561 4
International Flavors & Fragrances 3,978$ 6.0% 0.17 2.90 0.13 4.81 8291 29
Johnson Matthey PLC 13,675$ 5.0% 0.04 15.90 0.12 1.28 3485 38
K+S 4,769$ 0.0% 0.15 3.57 0.08 1.6 6765 39
Kansai Paint Co., Ltd. 3,628$ 6.0% 0.09 5.32 0.07 0.22 537 20
Koninklijke 10,943$ 1.0% 0.09 3.48 0.07 1.51 11356 31
Kraton Performance Polymers 2,012$ 11.0% 0.07 3.15 0.04 1.64 823 22
Lanxess 8,498$ 3.0% 0.07 4.50 0.07 1 2686 30
Lonza Group 5,542$ 7.0% 0.08 2.55 0.04 3.05 5341 42
LyondellBasell 39,004$ 4.0% 0.13 7.26 0.35 3.86 33503 14
Mitsui Chemicals Inc 11,991$ -2.0% 0.03 4.54 0.02 0.12 579 40
Nippon Kayaku 1,515$ 2.0% 0.13 2.80 0.08 0.24 411 25
Nippon Shokubai 46$ 0.0% 0.06 4.23 0.05 0.46 901 43
Nitto Denko 7,728$ 4.0% 0.12 6.54 0.1 0.42 2401 9
PPG 15,374$ 3.0% 0.12 4.81 0.17 4.92 23346 27
RPM International Inc 5,322$ 5.0% 0.1 4.17 0.08 4.09 5574 12
Sensient Technologies 1,387$ 2.0% 0.13 2.16 0.08 2.62 2513 15
Solvay 13,342$ 4.0% 0.09 5.23 0.06 0.37 4104 36
Stepan Company 1,994$ 6.0% 0.07 9.85 0.1 2.3 1283 33
Symrise AG 3,724$ 8.0% 0.15 2.73 0.09 4.21 6785 26
The Chemours Company 6,638$ -2.0% 0.11 3.82 0.07 3.86 2120 2
W.R. Grace 1,932$ -2.0% 0.15 5.29 0.13 15.62 4447 32
Wacker Chemie 5,879$ 2.0% 0.09 5.36 0.1 1.28 4055 41
2010-2018

Consumer Non-Durables
In the post-recession period, the acquisition strategies of consumer non-durables companies failed to
yield scale, and the large traditional consumer products companies of Colgate, Kimberly-Clark, P&G,
and Unilever struggled to drive growth as smaller and more nimble companies like Church & Dwight
and Clorox drove improvement in performance.
Containers and Packaging
In this peer group, the consistent winner is the Packaging Corporation of America (PCA). While
industry consolidation should show scale and performance improvements, this is not the case. The
primary issue is the focus on functional excellence versus embracing holistic supply chain thinking.
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET
CAP
INDEX
RANK
Church & Dwight Company 4,146$ 6.0% 0.19 6.96 14% 4.7 9,983 6
Clorox 6,124$ 1.0% 0.18 7.82 24% 62.5 13,727 12
Colgate-Palmolive 15,544$ 0.0% 0.24 5.22 13% 0.3 54,598 9
Energizer Holdings Inc. 1,798$ -2.0% 0.12 2.12 6% 0.1 1,161 1
Kimberly-Clark 18,486$ 0.0% 0.14 6.34 19% 0.2 36,975 8
Newell Rubbermaid 8,631$ 6.0% 0.1 4.46 3% 0.0 10,217 13
Procter & Gamble 66,832$ -1.0% 0.19 6.40 12% 0.1 213,189 4
Reckitt Benckiser Group 16,808$ 4.0% 0.26 5.00 22% 0.2 45,455 10
Spectrum Brands Holdings 3,146$ 1.0% 0.09 3.59 0% 0.0 1,970 2
Toro Corporation 2,619$ 6.0% 0.12 5.12 25% 0.3 4,037 5
Tupperware Brands 2,070$ 0.0% 0.15 2.83 15% 0.2 3,083 11
Unilever 60,200$ 1.0% 0.16 3.20 18% 0.2 120,817 7
Williams-Sonoma Inc. 5,292$ 5.0% 0.09 3.62 20% 0.2 4,707 3
2010-2018

Food
In the Supply Chains to Admire 2019 analysis, there are no winners in the food industry. While there
were prior winners in the Food Industry—Ingredion in 2018, Hershey in 2017, and General Mills in
2014—there is no consistent performer. The issue? There were major shifts in the food industry, but
no company was equal to the challenge. This included the growth of generic products by retailers, a
rise in commodity prices and shifts to natural and organic food products.
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET
CAP
INDEX
RANK
Amcor 8,900$ 5% -0.19 6.0 8% 8.3 11377 10
AptarGroup 2,765$ 5% 0.13 5.1 10% 3.3 4309 19
Ball Corporation 11,635$ 7% 0.10 6.5 7% 5.4 9678 12
Bemis Company 4,123$ 3% 0.09 5.8 7% 2.8 3992 14
Berry Plastics Group 7,869$ 7% 0.08 6.5 3% 4.4 3612 1
CCL Industries 5,162$ 19% 0.13 9.2 10% 1.5 2762 17
Crown Holdings 11,151$ 4% 0.11 5.9 9% 193.8 6262 13
Graphic Packaging Holding 6,023$ 5% 0.09 6.6 5% 2.4 3211 11
GREIF 3,874$ 4% 0.08 9.2 6% 2.5 2795 8
International Paper 23,306$ 0% 0.10 6.7 7% 3.3 18197 2
Intertape Polymer Group 1,365$ 8% 0.07 5.4 8% 3.1 839 6
Orora Ltd. 3,293$ 4% -0.12 3.5 3% 0.3 360 3
Owens-Illinois 6,877$ 1% 0.10 5.3 2% 5.6 3772 18
Packaging Corporation of America 7,015$ 15% 0.13 6.9 12% 4.0 6237 4
Sealed Air 4,733$ 4% 0.12 6.2 4% 6.9 6467 7
Silgan Holdings 4,449$ 4% 0.09 5.6 8% 4.3 2936 5
Smurfit Kappa Group PLC 10,564$ 3% 0.09 7.7 3% 1.3 3460 20
Sonoco Products 5,391$ 5% 0.08 9.6 9% 2.7 4257 14
Vitro 2,238$ 10% 0.11 4.2 15% N/A N/A 9
Westrock 16,285$ 24% 0.09 7.2 6% 0.5 5445 21
Winpak 890$ 7% 0.16 5.4 14% 0.6 490 16
2010-2018

COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET
CAP
INDEX
RANK
Archer Daniel Midland 64,341$ -5.0% 0.03 6.37 7.0% 1.28 23494 24
B&G Foods 1,701$ 15.0% 0.18 3.85 5.0% 3.83 1765 20
Bunge Ltd 45,743$ 2.0% 0.02 8.67 5.0% 1.3 10081 25
Campbell Soup 8,685$ 2.0% 0.16 5.53 15.0% 9.68 13314 16
Charoen Pokaphan Foods PLC 16,755$ 16.0% 0.04 7.51 6.0% 0.72 2686 23
Clearwater Seafoods Inc 592$ 9.0% 0.11 5.97 0.0% 3.95 411 22
ConAgra Foods 7,938$ -4.0% 0.10 5.19 5.0% 2.57 11711 13
Danone SA 29,108$ 4.0% 0.14 8.38 8.0% 2.81 42242 17
Dean Foods 7,755$ -4.0% 0.02 23.81 0.0% 2.16 1333 34
Ebro Foods SA 3,125$ 3.0% 0.11 2.99 8.0% 0.8 1680 30
Flowers Foods Inc 3,952$ 5.0% 0.20 12.37 10.0% 3.5 3712 14
Fresh Del Monte Produce Inc 4,494$ 3.0% 0.04 7.17 4.0% 1.06 1851 15
Freshpet 193$ 19.0% -0.08 6.60 -14.0% 2.99 334 2
General Mills 15,740$ 1.0% 0.17 6.92 12.0% 5.47 29466 27
Glanbia 2,818$ 2.0% 0.08 5.16 12.0% 1.44 1774 8
Golden Agri-Resources 7,167$ 16.0% 0.11 6.17 6.0% 0.44 2441 30
Grupo Lala SAB de CV 3,927$ 4.0% 0.09 8.56 9.0% 0.5 707 32
Hershey 7,791$ 4.0% 0.19 5.59 21.0% 17.87 19246 10
Hormel Foods 9,546$ 4.0% 0.11 7.53 17.0% 3.71 14425 4
Ingredion Incorporated 6,289$ 7.0% 0.11 6.50 10.0% 2.61 6180 3
Kellogg Co 13,547$ 1.0% 0.12 6.81 11.0% 9.25 21900 29
Maple Leaf Foods 2,697$ -5.0% 0.03 11.75 9.0% 1.18 1751 1
McCormick 5,409$ 6.0% 0.15 3.67 13.0% 5.35 10468 7
Mondelez 25,938$ -4.0% 0.12 5.70 7.0% 1.93 56279 4
Nestle 93,791$ 0.0% 0.16 5.27 15.0% 3.49 223241 21
Orkla ASA 5,017$ -3.0% 0.11 3.13 6.0% 1.20 5290 19
Pilgrim's Pride Corporation 10,938$ 5.0% 0.07 8.44 13.0% 3.13 4360 9
Post Holdings Inc 6,257$ 29.0% 0.12 6.88 -2.0% 1.05 2758 11
Smucker's 7,357$ 9.0% 0.17 4.28 7.0% 1.83 11292 12
The Hain Celestial Group Inc 2,458$ 10.0% 0.09 4.88 4.0% 2.31 3318 25
The Kraft Heinz Co 26,268$ 5.0% 0.19 5.68 5.0% 0.67 37980 18
Tree House Food Inc 5,812$ 19.0% 0.07 4.89 2.0% 1.72 2818 28
Tyson Foods Inc 40,052$ 5.0% 0.06 11.21 9.0% 1.75 15352 6
2010-2018

Personal Products
Nine years after the end of the recession, margins in this industry are the same as 2010, but there is a
precipitous fall in inventory due to globalization, product complexity and shifts in the channel. Revlon meets
the performance standard but is not driving improvement at a rate to make it into the winner’s circle. L’Oréal
is the industry winner. This is the fourth consecutive year that for L’Oréal to place in the Supply Chains to
Admire Winners Circle. Estee Lauder was a winner in 2015.
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET
CAP
INDEX
RANK
Avon Products 5,571 -6% 0.06 3.79 -6% 4.1 4,817 14
Beiersdorf 8,541 1% 0.13 3.36 14% 1.5 8,038 6
CCA Industries 17 -12% -0.01 2.52 -14% 2.0 25 9
Coty 9,398 14% 0.08 2.62 0% 10.3 6,133 1
Estee Lauder 13,683 7% 0.15 1.84 20% 8.4 30,366 2
Henkel AG & Company 23,497 2% 0.12 4.90 10% 3.0 43,342 15
Herbalife Ltd. 4,892 9% 0.14 2.59 33% 11.7 5,384 13
Inter Parfums 676 7% 0.13 1.76 10% 2.6 975 4
Kao Corporation 13,653 0% 0.11 4.39 12% 1.3 8,317 7
L'Oreal 31,808 3% 0.17 2.95 15% 3.6 95,442 4
Natures Sunshine Products 365 1% 0.04 2.18 7% 2.0 223 8
Nu Skin Enterprises 2,679 10% 0.13 2.08 20% 4.5 3,281 11
Ocean Bio-Chem Inc. 42 6% 0.09 2.53 10% 1.4 26 12
PZ Cussons PLC 1,027 -2% 0.13 3.30 9% 0.8 553 10
Revlon Inc. 2,565 8% 0.11 3.36 12% 0.0 1,188 16
Shiseido Co Ltd. 9,912 5% 0.06 2.08 5% 3.0 10,697 3
MEAN WITH OUTLIERS 8,020 3% 0.10 2.9 10% 3.8 13,675
MEAN WITHOUT OUTLIERS 3% 0.10 2.9 10% 3.8 5,716
2010-2018

Pharmaceuticals
The pharmaceutical industry stalled post-recession, accelerated improvement in the period of 2014-2018. For
the first time in the history of Supply Chains to Admire analysis, there is a pharmaceutical winner. AbbVie
pharmaceutical, a manufacturer of biologics places into the winner’s circle. The company is a spin-off of
Abbott Labs.
COMPANY
2018 ANNUAL
REVENUE
GROWTH
OPERATING
MARGIN
INVENTORY
TURNS
RETURN ON
INVESTED
CAPITAL
PRICE TO
BOOK
MARKET
CAP
INDEX
RANK
Abbott Laboratories 30,578$ 2% 0.11 3.42 8% 2.6 67003 22
AbbVie Inc. 32,753$ 10% 0.28 4.26 17% 17.5 81089 12
Acura Pharmaceuticals Inc. 4,131$ 2% -15.04 0.4 -42% 3.5 62 34
Alexion Pharmaceuticals Inc. 15,787$ 31% 0.32 0.99 10% 7.4 24531 17
Allergan PLC 167,940$ 34% -0.06 2.46 1% 1.9 47083 31
AmerisourceBergen Corporation 23,747$ 10% 0.01 13.51 14% 7.6 15450 16
Amgen 3,332$ 6% 0.36 1.36 11% 4.2 95535 6
Aspen Pharmacare Holdings Ltd. 11,736$ 6% 0.25 2.02 9% 1.2 3646 23
Astellas Pharma Inc. 22,090$ 2% 0.15 2.37 11% 3.6 43513 25
AstraZeneca PLC 46,744$ -4% 0.18 2.31 13% 4.4 76325 32
Bayer 13,453$ 1% 0.12 2.35 9% 3.1 87505 18
Biogen Idec Inc. 22,561$ 14% 0.4 1.49 20% 5.1 50089 5
Biomarin Pharmaceutical Inc. 2,463$ 19% -0.17 0.6 -5% 6.1 10964 24
Bristol-Myers Squibb Company 15,281$ 3% 0.21 3.86 13% 5.5 82140 9
Catalent Inc. 8,666$ 6% 0.12 6.86 2% 2.9 2214 1
Celgene Corporation 24,556$ 21% 0.3 1.17 15% 9.9 62275 11
Daiichi Sankyo Co Ltd. 41,123$ 1% 0.14 2.00 6% 1.2 12644 25
Eli Lilly and Company 81,581$ 2% 0.23 1.69 15% 5.4 74259 14
GlaxoSmithKline 3,216$ -1% 0.2 1.96 15% 73.9 103630 20
Johnson & Johnson 42,294$ 3% 0.26 2.96 15% 4.0 267743 27
Mallinckrodt PLC 11,434$ 8% 0.11 2.67 -1% 0.9 3491 19
Merck and Company 53,166$ 7% 0.17 2.80 7% 3.5 146468 4
Mylan NV 17,715$ 10% 0.14 2.61 5% 3.1 16696 29
Novartis AG 4,732$ 2% 0.19 2.64 11% 2.5 179560 15
Novo Nordisk A/S 53,647$ 7% 0.39 1.29 64% 14.7 103096 10
Perrigo Co PLC 6,711$ 14% 0.15 3.40 3% 2.9 13213 28
Pfizer, Inc. 58,111$ 1% 0.28 1.62 11% 2.7 193661 13
Regeneron Pharmaceuticals Inc. 42,128$ 46% 0.18 1.31 16% 10.8 30090 33
Roche Holding 18,854$ 3% 0.29 2.23 21% 10.0 149899 6
Sanofi S.A. 1,628$ 0% 0.21 1.70 7% 1.6 111610 21
Teva Pharmaceutical Industries Limited 3,048$ 4% 0.21 2.01 1% 1.6 36654 29
United Therapeutics Corporation 5,825$ 19% 0.45 1.80 24% 3.4 5029 8
Vertex Pharmaceuticals Inc. 3,044$ 1% 0.66 3.53 -14% 17.4 22078 3
Zoetis Inc. 5,800$ 6% 0.22 1.30 10% 12.1 18257 2
MEAN WITH OUTLIERS 26,467$ 9% -0.23 2.6 9% 7.6 65809
2010-2018

Research Methodology
Year-over-year, the Supply Chains to Admire methodology continues to evolve. Each year we review
and refine the process based on feedback from supply chain business leaders.
Determining Winners
The methodology used to define the 2019 winners outlined in this report is as follows:
4) Determine Industry Peer Groups. We started by placing companies into industry peer groups
(based on prior work, we have found NAICS and SIC codes to be inadequate). After much debate,
we defined 23 peer groups, assigned companies to their respective industry sectors, and started
the analysis for 515 public companies. There is no such thing as a perfect peer group.
5) Define Timeframe. The next step was to determine the appropriate time period. Since it takes at
least three years for supply chain leaders to translate strategy to balance sheet results, and project
outputs are often hard to sustain, we selected the 2010-2018 time period. Our goal was to
understand post-recessionary trends.
6) Identify the Metrics for Comparison. The third step was to identify the metrics to be collected and
analyzed. In this analysis, we selected two value metrics (Market Capitalization and Price to
Tangible Book Value (PTBV)) and four performance metrics (Growth, Operating Margin, Inventory
Turns and Return on Invested Capital (ROIC)). Our goal to move supply chain leaders from a cost
to value focus. Based on prior research, we know that the performance metrics selected have the
highest correlation to market capitalization.
7) Start the Analysis. To complete the analysis, we collected publicly available data from balance
sheets and income statements. For this analysis, we used YCharts, a syndicated data provider of
balance sheet and income statement data. We only included companies that had at least one data
point across all of the metrics in the time period selected.
8) Defining Improvement. The base principle of this analysis is that supply chain winners drive
improvement while also outperforming their peer group. As will be seen, this is hard to do. Our first
calculation was defining improvement on balance sheet performance as compared to the peer
group. To accomplish this goal, we calculated each company’s Supply Chain Index Ranking, a
measurement of supply chain improvement based on balance, strength, and resiliency.1
Companies
1
Supply Chain Index, published by Supply Chain Insights, http://supplychaininsights.com/research, July 12, 2017

are then stack ranked within a peer group and assigned an overall ranking based on the relative
level of improvement. The lower the rank number, the higher the level of improvement. When
companies tied, each company received the same ranking.
9) Analyzing Performance. For each metric chosen, we calculated the mean for each company, and
each industry peer group, and analyzed the pattern over the time period. We then compared each
company’s mean to that of the industry peer group and determined the allowable percentage from
the mean to be considered close to the industry peer group average.
10) Define Winners. Our final step was to determine winners based on the criteria of improvement,
value, and performance, as will be explained in detail in this report.
To understand the methodology completely, it is important to note what it does not include:
• This analysis does not include private companies or companies trading only on Chinese and
Korean stock exchanges.
• Companies with issues on reporting during the period (M&A), or public offerings, are excluded from
the analysis.
• We excluded companies that did not have at least one data point for each metric across the time
period studied.
• The research is a focused look at the retail, distribution, and manufacturing companies and does
not include financial, insurance or service sectors.
• Within each industry, there are metrics we consider to be important but feel that there is no good
source of data. This is the case for customer service metrics. While we strongly believe that the
analysis should include customer service in the performance metrics, we cannot find a reliable data
source.
The Criteria
Connecting supply chain performance to balance sheet information can be gnarly and confusing. We
detail the steps in Figures 5 and 6 to help the reader better understand the process.
Figure 5. The Supply Chains to Admire Analysis Criteria

Table 6. Calculation Example
In this report, we share our data openly to help all supply chain leaders. As with most comparisons,
the devil is in the details:
• Winner Analysis: The methodology is not limited to the best company in the peer group. Within a
peer group, there can be multiple winners. There is also a possibility of no winners within a peer
group. In this year’s analysis, there are no winners for ten of the 28 industries.
• Peer Group Analysis: The analysis is within single industry peer groups only. There is no stacked
ranking across multiple peer groups. We believe that comparison across industries is “fools play”
because the industries are so different.
• Supply Chain Index: The Supply Chain Index is a ranking within an industry peer group across
three measurements:
1) Balance - vector analysis of the rate of change at the intersection of Return on Invested
Capital & Revenue Growth for the period
2) Strength - vector analysis of the rate of change at the intersection of Inventory Turns &
Operating Margin)
3) Resiliency - tightness of the pattern at the intersection of Inventory Turns & Operating
Margin as measured by the mean distance of years on an orbit chart.
• Industry Peer Group Means: In calculating the industry peer group mean for the value metrics
(Market Capitalization and Price to Tangible Book Value), we removed outliers.2
2
Major outliers were calculated according to this formula: http://www.wikihow.com/Calculate-Outliers

• Margin of Error: In order to determine the allowable distances from the industry peer group mean
for the value and performance metrics (Market Capitalization, Price to Tangible Book Value, Growth,
Inventory Turns, Operating Margin and Return on Invested Capital), we calculated the margin of
error (at a 95% level of confidence, excluding outliers) for each metric among all companies in the
analysis. We then allowed “winners” to be within the equivalent of one margin of error of the mean.3
Prior Reports in This Series
In the seven years of the history of Supply Chain Insights, we have been zealous in figuring out what
drives value in supply chains. As we learn, we improve our methodology. You can track our progress
and find industry-specific information published by Supply Chain Insights here:
Supply Chains to Admire 2014 September 2014
Supply Chains to Admire 2015 September 2015
Supply Chains to Admire 2016 July 2016
Supply Chains to Admire 2017 June 2017
Supply Chains to Admire 2018 June 2018
Supply Chain Index May 2014
Supply Chain Index - 2018 June 2018
Supply Chain Metrics That Matter: The Cash-to-Cash Cycle November 2012
Supply Chain Metrics That Matter: Driving Reliability in Margins January 2013
3
Margin of error formula: http://www.dummies.com/education/math/statistics/how-to-calculate-the-margin-of-error-for-a-
sample-mean/

About Supply Chain Insights LLC
Founded in February 2012 by Lora Cecere, Supply Chain Insights LLC is in its seventh year of
operation. The Company’s mission is to deliver independent, actionable, and objective advice for
supply chain leaders. The Company is dedicated to this research. Our goal is to help leaders
understand supply chain trends, evolving technologies, and which metrics matter.
About Lora Cecere
Lora Cecere (twitter ID @lcecere) is the Founder of Supply Chain Insights LLC and
the author of popular enterprise software blog Supply Chain Shaman currently read
by 15,000 supply chain professionals. She also writes as a Linkedin Influencer and
is a contributor to Forbes. She has written six books. The first book, Bricks Matter,
(co-authored with Charlie Chase) published in 2012, and the second book Supply
Chain Metrics That Matter, published in December 2014. In addition, Lora
publishes best read blog posts each year in a self-published book series, The
Shaman’s Journal. This series published annually for the period of 2014-2019.
With over eighteen years as a research analyst first with AMR Research, Altimeter Group, and
Gartner Group and now as the Founder of Supply Chain Insights, Lora understands supply chain
management. She has worked with over 600 companies on their supply chain strategy and is a
frequent speaker on the evolution of supply chain processes and technologies. Her research is
designed for the early adopter seeking first-mover advantage.

Supply Chains to Admire Analysis for 2019

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Supply Chains to Admire Analysis for 2019