Supply Chain Mid Term

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PA G E /

Performance
Parameters Evaluation

1. Expert Opinion and Peer Opinion: Based on Research Papers data.


2. ROPA:  ((2020 operating income / 2020 net property, plant, equipment + year-end inventory) ×
50%) + ((2019 operating income / 2019 net property, plant, equipment + year-end inventory) × 30%)
+ ((2018 operating income / 2018 net property, plant, equipment + year-end inventory) × 20%)
3. Inventory Turns: 2020 cost of goods sold / 2020 quarterly average inventory.
4. Revenue Growth: ((change in revenue 2020-2019) *50%) + ((change in revenue 2019-2018)
*30%) + ((change in revenue 2018-2017) *20%).
5. ESG Component Score: Index of third-party environmental, social and governance measures of
commitment, transparency and performance

Composite Score: (Peer Opinion*25%) + (Experts Opinion*25%)+ (ROPA*20%)+ (Inventory


Turns*5%) + (Revenue Growth*10%) + (ESG Component Score*15%) 

W W W . W E B S I T E . C O M
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PA G E /

Performance
Parameters

Gartner Three-
Three- ESG
Company Peer Opinion1 Opinion1 Year Weighted Inventory Year Weighted Component Composite
Rank (195 voters) (42 Turns Revenue
Name (25%) voters) ROPA2 (5%) Growth Score Score
(20%) (15%)
(25%) (10%)

Colgate-
1 Palmolive 1217 557 65.9% 4.2 2.9% 10.00 5.58
2 J&J 1386 502 73.6% 3 1.8% 8.00 5.22
3 Nestle 1372 323 40.6% 4.2 -3.6% 10.00 4.41
4 Pepsi Co 1003 351 43.0% 7.8 3.9% 10.00 4.37

5 Coco-cola 1350 156 68.5% 4 -4.2% 6.00 3.34

W W W . W E B S I T E . C O M

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