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Thursday, August 16, 2012

A View of Sector Inventory Performance

A very informative piece in SC Digest, that surveys inventory turns by sector.  A must for supply chain data trend understanding.  " ... So, let's take an example. Amazon.com had about $48 billion in sales in 2011 (wow). Divided by 365 days in a year, that means the company sold about $131 million worth of stuff per day. It also ended the year with $4.992 billion in inventory. So dividing that inventory number by the $131 million in sales per day means Amazon holds on average inventory equal to about 38 days of its sales. McDonald's, by contrast, manages to hold just about 2 sales day's worth of inventory (I assume franchisers hold much of the inventory in the chain, though the restaurant category has the lowest overall DIO); Goodyear Tire holds 62 day's worth .... " 

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