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Top 25 Supply Chains named by Gartner

Gartner, Inc. has released the findings from its seventh annual Supply Chain Top 25 from this year's research at the Gartner Supply Chain Executive...

Freddie Pierce
|Jun 2|magazine31 min read

Gartner, Inc. has released the findings from its seventh annual Supply Chain Top 25 from this year's research at the Gartner Supply Chain Executive Conference.

"Four key themes emerged this year among the leaders, including how they deal with volatility, their approaches to value chain network integration, their focus on sustainable execution and their abilities to orchestrate," Debra Hofman, research vice president at Gartner, said.

Gartner analysts said one of the trends they've seen over the last several years is a move from the notion of "supply chain" to "value chain" and a concomitant increase in the span of control of the supply chain organization.

"The old image of a supply chain organization limited to either inbound materials management or logistics, with procurement, planning, manufacturing and customer service as totally separate functions, is fading," Hofman said. "The consumer-oriented companies, with their need to renew product lines constantly and their appetite for downstream data, have led the way in this change.”

Apple held onto the No. 1 position for the fourth year in a row. The company continued to post strong financials and top-of-the-line voting scores. Research In Motion, which was new to the list last year, rose to No. 4 this year with enviable financials and solid votes.

Amazon, another newcomer last year, rose five spots to No. 5 in the 2011 ranking. Colgate-Palmolive, rising steadily since 2009, moved to No. 13 this year.

 

The Gartner Supply Chain Top 25 for 2011

 

 

Rank

 

Company

 

Peer
Opinion1
(156
Voters)
(25%)

 

Gartner
Opinion1
(32
Voters)
(25%)

 

Three-
Year
Weighted
ROA2
(25%)

 

Inventory
Turns3
(15%)

 

Three-
Year
Weighted
Revenue
Growth4
(10%)

 

Composite
Score5

1

 

Apple

 

2,950

 

536

 

17.9%

 

49.3

 

40.9%

 

8.50

2

 

Dell

 

1,909

 

457

 

6.6%

 

38.9

 

4.1%

 

5.14

3

 

P&G

 

1,726

 

660

 

9.6%

 

5.6

 

2.4%

 

5.13

4

 

Research In Motion (RIM)

 

550

 

215

 

25.1%

 

17.7

 

43.9%

 

5.10

5

 

Amazon

 

2,267

 

402

 

6.6%

 

11.2

 

34.0%

 

5.07

6

 

Cisco Systems

 

1,501

 

550

 

10.2%

 

11.8

 

5.5%

 

4.82

7

 

Wal-Mart Stores

 

1,755

 

449

 

9.0%

 

8.5

 

3.6%

 

4.40

8

 

McDonald's

 

711

 

161

 

15.3%

 

141.8

 

2.6%

 

4.35

9

 

PepsiCo

 

740

 

445

 

12.0%

 

7.8

 

18.8%

 

4.11

10

 

Samsung

 

857

 

361

 

9.8%

 

16.9

 

22.5%

 

3.98

11

 

The Coca-Cola Company

 

1,305

 

265

 

15.3%

 

5.3

 

7.9%

 

3.96

12

 

Microsoft

 

566

 

128

 

21.4%

 

16.6

 

6.1%

 

3.72

13

 

Colgate-Palmolive

 

560

 

239

 

20.0%

 

5.1

 

3.0%

 

3.62

14

 

IBM

 

994

 

238

 

12.5%

 

21.1

 

0.8%

 

3.60

15

 

Unilever

 

449

 

459

 

11.5%

 

5.3

 

5.2%

 

3.53

16

 

Intel

 

871

 

247

 

13.6%

 

4.5

 

9.7%

 

3.37

17

 

HP

 

949

 

331

 

7.0%

 

14.3

 

6.7%

 

3.28

18

 

Nestle

 

389

 

62

 

22.6%

 

5.5

 

0.8%

 

3.05

19

 

Inditex

 

376

 

180

 

16.9%

 

4.4

 

10.5%

 

3.05

20

 

Nike

 

781

 

144

 

13.0%

 

4.7

 

3.3%

 

2.72

21

 

Johnson & Johnson

 

548

 

121

 

13.4%

 

3.6

 

-0.3%

 

2.38

22

 

Starbucks

 

544

 

127

 

10.6%

 

8.6

 

5.1%

 

2.35

23

 

Tesco

 

524

 

190

 

5.3%

 

18.3

 

8.0%

 

2.34

24

 

3M

 

760

 

7

 

13.2%

 

4.6

 

5.8%

 

2.25

25

 

Kraft Foods

 

471

 

192

 

4.4%

 

5.9

 

15.6%

 

2.03

Notes on Scoring:

1. Gartner Opinion and Peer Opinion:Based on each panel's forced-rank ordering against the definition of "DDVN Orchestrator"
2. Return on Assets (ROA): ((2010 net income / 2010 total assets) * 50%) + ((2009 net income / 2009 total assets) * 30%) + ((2008 net income / 2008 total assets) * 20%)
3. Inventory Turns: 2010 cost of goods sold / 2010 quarterly average inventory
4. Revenue Growth: ((change in revenue 2010-2009) * 50%) + ((change in revenue 2009-2008) * 30%) + ((change in revenue 2008-2007) * 20%)
5. Composite Score: (peer opinion * 25%) + (Gartner opinion*25%) + (ROA*25%) + (inventory turns * 15%) + (revenue growth * 10%)

About the Gartner Supply Chain Top 25

Gartner analysts derive a master list of companies from a combination of sources, including the Fortune Global 500, the Fortune 1000 and the Forbes Global 2000. The primary source is the Fortune Global 500, which is pared down to the manufacturing and retail sectors.

Analysts then supplement this group with companies from the Fortune 1000 that fall between $10 billion in revenue and the smallest revenue on the Global 500 list, as well as select companies from the Forbes Global 2000.

Edited by Kevin Scarpati