You have recently joined a consulting firm that specializes in supply chain performance. A client has asked that you benchmark their firm's supply chain performance against the industry average performance. You have assembled the data below:
Client Industry Average
Sales = Net Revenue $100,000 $120,000
Cost of Sales $ 75,000 $ 96,000
Inventory $ 7,500 $ 8,700
Total Assets $ 45,000 $ 60,000
Net income $ 2,000 $ 2,200
a. How does your client's supply chain performance compare to the industry average? Support your answer with two of the appropriate metrics.
b. How does your client's overall Return on Assets compare to the industry average? Support your answer with the appropriate metric.
c. What conclusion do you make about overall performance of the client relative to the industry average?