Capgemini’s benchmarking tool provides manufacturers with an ongoing view of how they stack up against their competition and identifies key areas for improvement.
As global manufacturers face such challenges as shorter product lifecycles, increasing competition and growing supply chain complexity, improving performance throughout the organization becomes more important than ever. But identifying opportunities for improvement isn’t always easy. Benchmarking manufacturing companies across a range of financial, operational and commercial metrics can help provide better performance evaluation.
This is the premise behind Capgemini’s Continuous Benchmarking Study. This ongoing research measures the practices of dozens of leading companies operating in the aerospace and defense, automotive, high tech and industrial products segments against a defined set of key performance indicators (KPIs). The benchmarking tool enables manufacturers to better understand their own performance against competition and identify performance gaps and opportunities on an ongoing basis. The insights gained from this analysis can be leveraged to address areas of strength as well as opportunities for improvement.
The study model was built using multiple benchmarking metrics in four areas: Growth: Metrics consist of sales growth (latest quarter sales – yearago quarter sales/year-ago quarter sales) and net income growth (latest quarter net income – year-ago quarter net income/year-ago quarter net income). Return on Investment: Metrics used are gross margin % of revenue (revenue – COGS/revenue); net margin % of revenue (net income/ revenue); return on assets (% TTM1; net income/total assets); and return on equity (% TTM; net income/total stockholders’ equity). Financial Health: Debt/equity ratio (TTM; total debt/total stockholders’ equity); earnings per share (TTM; net income/total common shares outstanding); and revenue per share (TTM; (revenue/total common shares outstanding). Management Efficiency: SG&A % of revenue (SG&A/revenue); COGS % of revenue (cost of revenue/ revenue); R&D % of revenue (R&D expenses/revenue); receivables turnover (revenue/average accounts receivables); days payable outstanding (average accounts payable/cost of revenue; number of days); and inventory turnover (cost of revenue/average inventory).