|
Benchmarking
Research
PMG has the largest fact-based benchmarking
data repository of its kind, which holds over 10 years of historical
data. Examples of PMG's in-depth research are shown below.
“Best-in-Class” SC companies have more efficient cost structures and superior performance due to more mature practices and lower operational complexity.
Recent research from the PMG has shown that supply-chain performance is correlated with an additional factor known as operational complexity. The newly updated study will provide new insights on the correlation between complexity and performance of BIC companies and whether such companies maintain consistent BIC performance levels with a highly complex supply-chain operation.
PMG’s research was extensive, for this analysis the company:
- Analyzed 121 supply chains from PMG’s Supply Chain Performance Benchmarking database;
- Developed a composite SC Performance Index from 21 operational and financial performance measures for classifying “Best-in-Class”, “Median”, and “Worst-in-Class” SC performers;
- Analyzed operational and financial performance metrics to understand what advantages are experienced by leading companies; and
- Correlated maturity practices and complexity drivers with “Best-in-Class” SC performers.
The presentation of findings examines the expanded definition of “Best-in-Class” SC companies across a broader set of end-to-end SC performance measures and to more deeply explore with our expanded dataset the correlations of complexity as well as best practices to performance.
Download the complete presentation:
Supply Chain Performance: Competitive Advantages of Best-In-Class Supply Chains
Boost the Bottom Line
with Supply Chain Best Practices
PMG's latest research shows that discrete
manufacturers with mature supply chain practices are 40% more profitable
than discrete manufacturers with less mature practices. Although other
factors such as product innovation and channel management certainly
contribute to this profit edge, supply chain management is a key driver.
 This research evaluates the stage of
operational and technological maturity among companies and how maturity
translates into better supply chain performance. It also explores the
correlation between supply chain practice maturity and overall business
and financial performance.
Study
results show that companies with mature practices outperform their
peers in delivery, flexibility, responsiveness, and cost. Mature-stage companies
have a 10–25% advantage in three components of overall supply chain
management costs—order management, material acquisition, and inventory
carrying. As a result, total supply chain costs for these later-stage
companies are only 9% of revenue on average, versus 10.7% for lesser-stage
companies. For a $1 billion company, that translates into savings of
almost $20 million.
Read the complete report:
Signals
of Performance "Boost the Bottom Line with Supply Chain Best
Practices"
Pipeline/Portfolio
Best Practices Yield Higher Profits
The benefits of implementing
pipeline/portfolio best practices are clear. PMG's research indicates that
advanced companies, in terms of pipeline management and overall product
development capabilities, realize a substantial advantage:
- Two times the industry average for return-on-investment (RDEI)
- 90% project success rate
- 25% profit margins, as
compared to 12–18% for lesser performers
PMG examined the relationship between overall product development
capabilities, performance in key business metrics, and level of portfolio
management capabilities and mapped performance to our Stages of Overall
Product Development Capability:
- Stage 0—Informal Management:
Informal practices based on individual experience
- Stage 1—Functional Excellence:
Excellence within functions, but not across functions
- Stage 2—Project Excellence:
Functions aligned for effective execution from concept to market
- Stage 3—Portfolio Excellence:
Processes aligned to achieve platform leverage, portfolio balance,
and excellence in
project selection and execution
- Stage 4—Collaborative Development
Excellence: Core processes linked across internal and external business
partners for
maximum leverage
This Signals focuses on the best
practices for pipeline/portfolio management and an indication of the
roadmap to better results. Discover your quadrant of performance and read the complete report:
Signals
of Performance "Pipeline/Portfolio Best Practices Yield Higher Profits"
>> Just
contact us at info@pmgbenchmarking.com for more information.
|
