Amazon Takes the Top Spot in Supply Chain Top 25 Rankings
Gartner has released the findings from its 11th annual Supply Chain Top 25, identifying global supply chain leaders and highlighting their best practices. The top five include three from last year - Amazon, McDonald's and Unilever - one returning leader, Intel, and a newcomer to this elite group, Inditex. Three companies rejoined the list this year after a lengthy hiatus, with L'Orιal at No. 22, Toyota at No. 24 and Home Depot at No. 25.
"This year we are introducing a brand new category to highlight the accomplishments and capabilities of long-term leaders. We are, therefore, recognizing those companies that have consistently had top five composite scores for at least seven out of the last 10 years and placing them into a 'masters' category, separate from the overall Supply Chain Top 25 list," said Mr. Aronow. "In this the inaugural year for supply chain masters, we want to recognize two companies demonstrating sustained leadership: Apple and P&G."
Mr. Aronow said that both Apple and P&G have made major contributions to the supply chain profession over the years. P&G was one of the first to characterize and embed the concept of a consumer-driven supply chain, and Apple, defining the very notion of a "solution" supply chain, blazed new trails with its demand creation capabilities.
The Gartner Supply Chain Top 25 for 2015
Rank |
Company |
Peer Opinion1 |
Gartner Opinion1 |
Three- |
Inventory Turns3 |
Three- |
Composite Score5 |
1 |
Amazon |
3,394 |
468 |
0.0% |
8.7 |
21.7% |
5.32 |
2 |
McDonald's |
1,626 |
283 |
14.6% |
157.3 |
-0.2% |
5.23 |
3 |
Unilever |
1,996 |
619 |
11.3% |
6.7 |
-0.2% |
5.15 |
4 |
Intel |
1,064 |
481 |
12.1% |
5.0 |
2.4% |
4.09 |
5 |
Inditex |
1,003 |
297 |
17.0% |
3.8 |
8.8% |
4.04 |
6 |
Cisco Systems |
1,147 |
500 |
8.4% |
12.6 |
1.5% |
4.01 |
7 |
H&M |
809 |
89 |
26.6% |
3.7 |
12.8% |
4.01 |
8 |
Samsung Electronics |
1,568 |
330 |
10.5% |
17.7 |
0.5% |
3.91 |
9 |
Colgate-Palmolive |
1,034 |
318 |
17.8% |
5.0 |
0.6% |
3.91 |
10 |
Nike |
1,369 |
214 |
14.5% |
4.1 |
10.7% |
3.78 |
11 |
Coca-Cola |
1,938 |
287 |
8.9% |
5.4 |
-1.0% |
3.49 |
12 |
Starbucks |
1,215 |
174 |
13.0% |
6.8 |
11.6% |
3.48 |
13 |
Walmart |
1,794 |
259 |
8.4% |
7.8 |
2.5% |
3.39 |
14 |
3M |
1,161 |
150 |
14.9% |
4.2 |
2.7% |
3.09 |
15 |
PepsiCo |
890 |
330 |
8.9% |
8.3 |
0.3% |
3.04 |
16 |
Seagate Technology |
176 |
114 |
19.9% |
10.8 |
3.9% |
2.99 |
17 |
Nestlι |
1,123 |
244 |
9.9% |
5.1 |
2.0% |
2.93 |
18 |
Lenovo Group |
771 |
218 |
3.9% |
12.8 |
18.9% |
2.89 |
19 |
Qualcomm |
218 |
50 |
15.5% |
8.8 |
17.8% |
2.85 |
20 |
Kimberly-Clark |
819 |
243 |
10.5% |
5.9 |
0.8% |
2.76 |
21 |
Johnson & Johnson |
1,192 |
139 |
11.1% |
2.8 |
4.6% |
2.73 |
22 |
L'Orιal |
749 |
118 |
12.5% |
2.9 |
2.9% |
2.41 |
23 |
Cummins |
148 |
149 |
11.5% |
5.2 |
4.7% |
2.16 |
24 |
Toyota Motor |
1,322 |
23 |
3.6% |
10.6 |
13.4% |
2.16 |
25 |
Home Depot |
268 |
44 |
14.1% |
4.6 |
5.6% |
2.11 |
Notes:
1. Gartner Opinion and Peer Opinion: Based on each panel's forced-rank ordering against the definition of "DDVN orchestrator"
2. ROA: ((2014 net income/2014 total assets) * 50%) + ((2013 net income/2013
total assets) * 30%) + ((2012 net income/2012 total assets) * 20%)
3. Inventory Turns: 2014 cost of goods sold/2014 quarterly average inventory
4. Revenue Growth: ((change in revenue 2014-2013) * 50%) + ((change in revenue 2013-2012) * 30%) + ((change in revenue 2012-2011) * 20%)
5. Composite Score: (Peer Opinion * 25%) + (Gartner Research Opinion * 25%) + (ROA * 25%) + (Inventory Turns * 15%) + (Revenue Growth * 10%)
2014
data used where available. Where unavailable, latest available
full-year data used. All raw data normalized to a 10-point scale prior
to composite calculation. "Ranks" for tied composite scores are
determined using next decimal point comparison.
Source: Gartner (May 2015)
Gartner analysts highlighted three standout trends for supply chain leaders in 2015:
- Chief supply chain officers (CSCOs) and their teams face an environment where business models must change quickly, where the expectation is that they will spend as much or more time growing and innovating as they will streamlining and promoting efficiency. Gartner has termed this reality "bimodal." Traditionally, supply chain executives have been successful because they were good at driving down costs. The leaders now realize they will be judged on cost containment as well as the ability to promote and support the top line.
- Another trend is a focus on customer experience as a measured priority in supply chain organizations. Independent of the product being sold, leaders are focused on listening more closely to their customers and responding with innovative solutions.
- While still a nascent concept, the view on how supply chain can leverage digital capabilities to support new business models and improve broader value chain performance became clearer this year. Manufacturing is currently at the center of many digital capabilities and leading companies recognize that "the factory" is not just somewhere inside the four walls of the company or an outsource partner. Digital synchronization of manufacturing lines with upstream suppliers and other supply chain functions is where the business value starts to multiply.
- The logistics function is not far behind manufacturing in terms of automation using sensors, gateways, tracking systems and business rules to predict and alert when there will be a variance to the current plan of record. Logistics control tower capabilities are not new, but when combined with more affordable sensors and computing power, they portend the democratization of deeper visibility that can reduce risk and improve both operating costs and customer-service levels for many companies.
