Gartner, Inc. has released the findings from its 11th annual Supply
Chain Top 25, identifying global supply chain leaders and highlighting
their best practices. Analysts announced the findings from this year's
research at the Gartner
Supply Chain Executive Conference, which is being held through today
at the JW Marriott Desert Ridge Resort and Spa in Phoenix, AZ.
"2015 marks the 11th year of our annual Supply Chain Top 25 ranking,"
said Stan
Aronow, research vice president at Gartner. "In this edition of the
Supply Chain Top 25, we have several longtime leaders with new lessons
to share and a number of more recent entrants from the high-tech,
consumer products, retail and industrial sectors."
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 (see Table 1). Three companies rejoined the list this
year after a lengthy hiatus, with L'Oréal at No. 22, Toyota at No. 24
and Home Depot at No. 25. Those familiar with Gartner's Supply Chain Top
25 may wonder why perennial leaders Apple and P&G are not included on
this year's list.
"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.
Table 1. The Gartner Supply Chain Top 25 for 2015
Rank
|
|
|
Company
|
|
|
Peer
Opinion1 (200 voters) (25%)
|
|
|
Gartner
Opinion1 (35 voters) (25%)
|
|
|
Three- Year
Weighted
ROA2 (25%)
|
|
|
Inventory
Turns3 (15%)
|
|
|
Three- Year
Weighted
Revenue
Growth4 (10%)
|
|
|
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
|
|
|
Nestlé
|
|
|
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'Oréal
|
|
|
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:
Bimodal Supply Chain Strategies
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.
Increased Customer Intimacy
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.
"This year, we heard from more companies extending visibility and
insight beyond first-line customers and moving on to the end users of
their products. Their supply chains are not just collecting data
concerning the details of the sale, but also the patterns of usage and
resulting sentiment of the end user," said Mr. Aronow. "Ultimately,
pleasing customers with strong operational supply chain performance,
when combined with improved solution performance, will lead to
measurable improvements in customer satisfaction and contributions to
the top line.
Emerging Digital Business Models
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.
More detailed analysis is available in the report "The
Gartner Supply Chain Top 25 for 2015."
About the Gartner Supply Chain Top 25
The Supply Chain Top 25 rankings comprise two main components: financial
and opinion. Public financial data gives a view into how companies have
performed in the past, while the opinion component provides an eye to
potential and reflects future expected leadership, a crucial
characteristic. These two components are combined into a total composite
score.
Gartner analysts derive a master list of companies from the Fortune
Global 500 and the Forbes Global 2000, with a revenue cutoff of $12
billion. Gartner then pares the combined list down to the manufacturing,
retail and distribution sectors, thus eliminating certain industries,
such as financial services and insurance.
About Gartner Supply Chain Executive Events
Analysts are discussing the future direction of the supply chain
industry at the Gartner
Supply Chain Executive Conference, taking place through today at the
JW Marriott Desert Ridge Resort and Spa in Phoenix. The Gartner
Supply Chain Executive Conference will also be held September 23-24
in London.
Additional information from the events will be shared on Twitter at http://twitter.com/Gartner_inc
and using #GartnerSCC.
About Gartner
Gartner, Inc. (NYSE: IT) is the world's leading information technology
research and advisory company. The company delivers the
technology-related insight necessary for its clients to make the right
decisions, every day. From CIOs and senior IT leaders in corporations
and government agencies, to business leaders in high-tech and telecom
enterprises and professional services firms, to technology investors,
Gartner is the valuable partner to clients in approximately 10,000
distinct enterprises worldwide. Through the resources of Gartner
Research, Gartner Executive Programs, Gartner Consulting and Gartner
Events, Gartner works with every client to research, analyze and
interpret the business of IT within the context of their individual
role. Founded in 1979, Gartner is headquartered in Stamford,
Connecticut, USA, and has 6,800 associates, including more than 1,500
research analysts and consultants, and clients in 90 countries. For more
information, visit www.gartner.com.
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