New supply chain excellence index set to debut

Arizona State University and the research firm Supply Chain Insights are developing a new index that will rank companies on supply chain excellence against peers in their own industries.

The Supply Chain Index will group public companies, using their North American Industry Classification System (NAICS) codes. The index will compare companies' progress from 2006 to 2013 by evaluating their supply chains on four criteria: progress in return on invested capital, inventory turns, and operating margins; ability to manage a balanced portfolio to maximize market capitalization; alignment of inventory turns with operating margin; and input from supply chain peers.

The index will be different from existing supply chain rankings, according to Lora Cecere, president of Supply Chain Insights. "I wanted to come up with something that could be easily accessed by all companies independent of size. I also wanted it to be industry-specific, comparing companies and their progress within industry peer groups."

Cecere said she expects the index will debut in August.