Top 10 biggest supply chains
Supply Chain Digital has taken a look at Gartner’s favourite supply chains (Top 25 Supply Chains, 2017), finding out which companies are have seen their top-notch supply chain management literally pay off with the biggest revenue figures
10 | Colgate-Palmolive – $15.2bn
Placing ninth on Gartner’s criteria list and 10th by sales revenue is toiletry-production company Colgate-Palmolive. Forbes determines the company’s sales revenue to be $15.2bn, with a market cap of $64.9bn. Founded in New York City in 1806 by William Colgate as a soap and candle business, it now employs 36,700 people according to Forbes. Its operations are split in two sections: Pet Nutrition, and Oral, Personal, and Home Care. It places 472nd on Forbes’ “The World’s Biggest Public Companies” list and 55th on Forbes’ “World’s Best Employers”. According to its company website, its global brands reach over 200 countries. Benzinga reports that Colgate-Palmolive is set to outperform in 2018, as researcher Caroline Levy elevated the company’s stock value from “Neutral” to “Outperform”.
9 | Starbucks – $21.67bn
Starbucks is an American-based coffeehouse chain and globally-recognised brand. According to Forbes, it brings in $21.67bn in sales, with a market cap of $84.6bn. Founded in Seattle in 1971 as a single coffeehouse, it now operates with 245,000 employees and 22,519 stores across the world. It places 370th on Forbes’ “World’s Biggest Public Companies” and 10th on Gartner’s “Top 25 Supply Chains 2017”. According to Industry Week, 99% of the coffee Starbucks uses is ethically sourced. CNBC reports that Starbucks has not recently reached Wall Street estimates with regards to revenue as a result of decreased foot traffic and customers spending longer in-store. However, Starbucks has unveiled plans to open standalone Princi, an Italian bakery which will allow the company to access the lunch food market, for 2018. Industry Week reports that the company has announced an intention to open up to 12,000 more stores in the near future.
8 | H&M – $22.67bn
Founded in Stockholm, Sweden in 1947 by Erling Persson, H&M (Hennes & Mauritz) is a clothing, accessory, footwear and cosmetics store chain. According to Forbes, it employs 114,586 people, bringing in a sales revenue of $22.67bn, with a market cap of $39.9bn. It places 506th on Forbes’ “World’s Biggest Public Companies”, ninth on Forbes’ “Top Ten Retailers to Work For”, and fifth on Gartner’s “Top 25 Supply Chains 2017”. According to Industry Week, it scores a perfect 10 on Gartner’s Corporate Social Responsibility (CSR), expanding its online and offline operations as well as bringing technological advances and automation into its distribution centres. According to the company website, the target growth is 10-15% per year in local currencies. 2018 will see Ukraine and Uruguay joining the H&M business, as well as the first standalone H&M Home storefront.
7 | McDonald’s – $24.62bn
McDonald’s was set up by Raymond Albert Kroc in 1955, ultimately becoming the fast-food giant it is today. Success was rapid: by 1958 McDonald’s had sold its 100 millionth hamburger. Forbes places its sales revenue at $24.62bn, with a market cap of $106.4bn. With headquarters in Oak Brook, Illinois, it has over 36,000 restaurants in over 100 countries. With 375,000 employees, it is placed 215th on Forbes’ “The World’s Biggest Public Companies”, and second on Gartner’s “Top 25 Supply Companies 2017”. According to Industry Week, McDonald’s inventory turns far surpass all other companies: an average of 174.5 compared to the next-closest Samsung at 15.1 turns. Industry Week calls it the world’s largest restaurant supply chain, and it is seventh on Forbes’ “World’s Most Powerful Brands”. According to Reuters, McDonald’s will unveil a new dollar menu in 2018, which will intensify its current price war with competitors like Taco Bell and Dunkin’ Donuts.
6 | Inditex – $25.74bn
Inditex is a Spanish clothing manufacturer, known for its Zara clothing stores. Founded by Amancio Ortega Gaona in 1963, it now oversees a wide range of known clothing brands including Zara, Zara Home, Pull & Bear, Bershka, Stradivarius, and Massimo Dutti. It brings in $25.74bn in sales, with a market cap of $112.1bn, according to Forbes. It employs 162,450 people, making 276th place on Forbes’ “The World’s Biggest Public Companies”. In 2015 it hit the 7,000 storefronts milestone by opening a branch in Hawaii. Currently it operates 7,504 stores, with 162,450 employees. It places third on Gartner’s “Top 25 Supply Chains 2017”. According to Industry Week, it also scored a perfect 10 on Gartner’s CSR. According to the company website, Inditex intends to expands its sustainable brands in 2018, having recently begun with Oysho Weare the Change and Zara Join Life.
5 | Nike – $33.82bn
Nike is a sports lifestyle and footwear company. It was started in 1964 by Philip H Knight and William Jay Bowerman. Forbes places its sales revenue at $33.82bn, with a market cap of $91.2bn. It places eighth on Gartner’s “Top 25 Supply Chains 2017”, gaining such recognition “the old fashioned-way: strong financial performance”, according to Industry Week. With 70,700 employees, it is 249th on Forbes’ “The World’s Biggest Public Companies”. GQ recently published a report on a 2018 upgrade Nike intends for an existing brand of shoes, rating them positively.
4 | Cisco Systems – $48.57bn
Cisco Systems is a company involved in the information technology and communications industry. Forbes places its sales revenue at $48.57bn, with a market cap of $165.1bn. The company was founded in 1984 by Sandra Lerner and Leonard Bosack, now employing 73,700 people. It places 58th on Forbes’ “World’s Biggest Public Companies”, 15th on Forbes’ “World’s Most Valuable Brands”, and fourth on Gartner’s “Top 25 Supply Chains 2017”. According to Industry Week, its role as a supplier is helped by efforts in the areas of logistics and energy efficiency. Business Insider reports a 4% increase in its stock value after a report of high revenue numbers come the first quarter of 2018.
3 | Unilever – $58.31bn
Unilever takes the number one spot on Gartner’s “Top 25 Supply Chains 2017”. Founded in 1929, it is a massive producer and marketer of nutrition, personal care, and hygiene goods. According to Industry Week, it is one of the “pioneers” in practices regarding to the sustainability of supply chains, with nine European hubs in charge of the movement of all goods. According to Forbes, it makes $58.31bn in sales, with a market cap of $143.9bn. It has 400 brands in 190 countries, its products reaching 2.5bn people at any given time. Its plans for 2018 include investing further in Mexico, as according to an official company statement, Mexico is a strategically relevant location for Unilever’s future as a company.
2 | Intel – $59.93bn
Intel is an American computer product and technology corporation. Forbes places its sales revenue at $59.39bn, with a market cap of $170.3bn. It places sixth on Gartner’s “Top 25 Supply Chains 2017”. According to Industry Week, the company currently has plans to produce more powerful and smaller PC-powering chips. It is 54th on Forbes’ “The World’s Biggest Public Companies”, and takes the top spot on Forbes’ “Just Companies”, which outlines “America’s best corporate citizens”. Founded in 1968, it now employs 106,000 people and has invested $300mn in improving diversity opportunities in the workspace. According to Forbes, Intel could be facing a difficult 2018 due to rivalry from competitor AMD.
1 | Nestlé – $90.82bn
Set up in Switzerland in 1866, nutrition and wellness company Nestlé now reaches 191 countries with more than 2,000 brands. Forbes places its sales revenue at $90.82bn, with a market cap of $229.5bn. It places seventh on Gartner’s “Top 25 Supply Chains 2017” and 34th on Forbes’ “The World’s Biggest Public Companies”. According to Industry Week, it scores a prefect 10 on Gartner’s CSR scale, and rates well due to its use of technology to boost its efforts as a supplier. According to Food Business News, sales in 2017 were flat compared to the previous year’s, leading to plans to potentially sell its US confectionary unit in early 2018.