Issue link: https://mmstopshopsexecsummary.epubxp.com/i/75155
Executive Summary TOP BUSINESS STRATEGY & PERFORMANCE recent years than other shops. The median growth rate in sales from 2009 to 2011 for the Top Shops was 41.7 percent versus 24.2 percent for the other shops. In addition, the Top Shops do a better job at turning revenue into profit. The Top Shops had a median net income margin (which is defined as net income di- vided by gross sales) of 12.9 percent last year, compared to just 5.9 percent for the other shops. T One contributing factor to the Top Shops' noticeably higher net income margin is greater emphasis on several supply chain strategies that reduce their overall expenses. Compared to other shops, the Top Shops were at least 10 percentage points more likely to use five particular supply chain practices listed in the sur- vey: collaborative design with suppliers, just-in-time deliveries to 0 Just-in-time deliveries to customers Customer-satisfaction surveys Access to customer forecasts Certification of major suppliers Just-in-time deliveries from suppliers Collaborative design with customers (DFM) Sharing forecasts with suppliers Vendor-managed or -owned inventories Collaborative design with suppliers Vendor-managed or -owned inventories for customers None of these 0 10 13.8% 16.6% 27.5% 25.2% 25.5% 12.5% 15.5% 16.0% 20 30 Top Shops Other Shops All Shops 40 50 60 22.2% 23.4% 27.5% 18.7% 20.0% 32.5% 10 he median gross sales for the Top Shops in 2011 were nearly 20 percent higher than the other shops. The Top Shops also saw significantly healthier sales growth over SHOPS OTHER SHOPS ALL SHOPS customers, just-in-time deliveries to suppliers, access to customer forecasts and customer-satisfaction surveys. During each of the last three years, the median Top Shop spent a larger percentage of gross sales on capital equipment. During this same period, the average Top Shop spent more on capital equipment as a percent of gross sales in 2009, but less in 2010 and 2011. However, the average dollars the Top Shops spent on capital equipment remained relatively constant over the three- year period, while the other shops' spending steadily increased. Also, the median and average values for yearly dollars spent on capital equipment are closer for Top Shops than the other shops. This suggests that the Top Shops are more consistent over time in capital equipment spending as a percentage of gross sales. In contrast, the other shops seem to let capital spending fall during bad business periods, and total spending varies more widely from shop to shop. 20 30 40 42.7% 44.5% 50.0% 40.0% 41.5% 47.5% 37.3% 38.9% 42.5% 34.2% 35.5% 42.5% 31.6% 33.2% 30.0% 31.6% 31.3% 30.0% Which of the following proactices are used with your supply chain? 50 60 55.0% SPONSORED BY AMT amtonline.org | IMTS imts.com 19