Top 10 biggest supply chains
In recent years, companies the world over have invested heavily into optimising their supply chain processes in order to drive value across their operations. We look at the top ten supply chains of 2018, as ranked by Gartner
10 | Starbucks
Since opening its first store back in 1971, Starbucks has set out to be a ‘different kind of company’. Its core mission is to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time. Starbucks currently has more than 24,000 stores across more than 75 markets. Since announcing a company-wide supply chain reinvention in 2008, Starbucks has continuously delivered on its promise. In 2018, the company announced a commitment to operate 10,000 “greener stores” by 2020. To achieve this, Starbucks announced the U.S Corporate Sustainability Bond designed to “finance initiatives that will make a positive social and environmental impact in our coffee supply chain as well as other areas across our business,” according to Scott Maw, chief financial officer at Starbucks.
9 | H&M
2018 represented a key turning point for H&M and its supply chain. In response to a below expected growth of 3% in 2017, the company announced that 2018 would see greater investment in technologies to make its supply chain faster, more flexible and more responsive to “mirror our customers’ fast-changing needs,” Karl-Johan Persson, CEO of H&M, told CIPS. (LINK - CIPS) H&M significantly invested in analytics and intelligence as well as cloud computing, radio-frequency identification (RFID) and 3D printing. “The fashion industry is changing fast. At the heart of the transformation is digitalisation and it is driving the need to transform and re-think faster and faster,” said Karl-Johan Persson, CEO of H&M. The company was also recognised for supply chain transparency, a pressing issue amongst the fashion retail industry, ranking within the top five in the Fashion Transparency Index.
8 | PepsiCo
With brands such as Pepsi, Doritos, Mountain Dew and Quaker under its umbrella, PepsiCo is one of the largest food and beverage companies in the world. To this end, it recognises the level of responsibility it has to ensure efficiency and best practice across its entire supply chain. In 2018, speaking at the Consumer Analyst Group of New York, PepsiCo detailed how it would use automation and data analytics to transform its supply chain and match the rising e-commerce landscape. In early 2019, the company collaborated with Robby Technologies to pilot a fleet of autonomous robots to deliver snacks and drinks to students at the University of the Pacific in California.
7 | Nestle
The world’s largest food and beverage company with more than 2,000 brands present in 189 countries, Nestle incorporated a number of global supply chain initiatives in 2018. In late 2018, the company announced an accelerated plan towards its 2020 No Deforestation commitment. This will involve becoming the first food company to implement a satellite-based service to monitor 100% of its global palm oil supply chain. "Our 'eyes in the sky' will monitor our palm oil supply chain 24/7, regardless of their certification status. This will enable us to further disclose publicly what we find, where we choose to suspend non-compliant suppliers, and where we choose to engage and improve the situation,” said Benjamin Ware, Global Head of Responsible Sourcing, Nestlé S.A
6 | Nike
Nike’s global vision is to “bring inspiration and innovation to every athlete in the world,” says Nike’s global mission, adding that “if you have a body, you’re an athlete.” The supply chain proves key to this vision, As Chairman, President and CEO, Mark Parker asserts that Nike is “incredibly energised about 2019 – with a full innovation pipeline, the most personal, responsive retail experiences in the industry, and a supply chain that’s delivering at scale.” The supply chain is helping Nike achieve revenues of more than US$9.4bn as stated in the company’s Q2 (November 2018) report. Digital has played a key role in the supply chain, illustrated when Nike opened Nike NYC – a “unique and immersive experience designed to serve consumers throughout the entire shopping journey.” The store embraces the digital experience, with QR codes, digital payments and online store inventory checking at the touch of a button.
5 | Intel
Tech behemoth Intel, based in Santa Clara, USA, is a key player in the digital transformation of supply chains worldwide but in recent years, the company looked at its own supply chain and embraced this digital revolution. In 2017, the company embarked on a major digital transformation of its supply chain systems and implemented SAP HANHA to power this journey. Following a $208mn investment, Intel will simply its supply chain and data pipelines, enable self-service analysis to make smarter business decisions, improve the quality of supply chain data.
4 | Colgate-Palmolive
Operating in more than 200 countries, Colgate-Palmolive is the premier manufacturer and distributor of consumer products including oral care, personal care and pet nutrition products. Much like Intel, Colgate also entered into a partnership with SAP to improve its supply chain analysis and to enable greater value for the business. The company is working towards SAP S/4HANA platform, which will free up time in other key areas of the business, explore new opportunities to drive growth and utilise SAP’s cloud platform to collate this data and make smarter decisions.
3 | Cisco Systems
Provider of industry-leading technology products and solutions, Cisco completely transformed its supply chain function in 2018 to boost agility, resiliency and ability to scale. Cisco identified that IT was “not able to respond quickly to supply chain business requirements, and the business was not able to respond quickly to market transitions and opportunities,” says Shanthi Iyer, director, Cisco Value Chain IT, Supply Chain Management. Through the digital transformation, Cisco migrated all ERP instances into one, standardised, end-to-end system which resulted in a 30-50% reduction in time to market.
2 | Inditex
One of the world’s largest fashion retailers, Spanish multinational company Inditex places sustainability at the heart of its supply chain operation. Challenging all of its 1,824 global suppliers to conform to a code of conduct as part of a sustainability pledge, Inditex was recognised in 2018 as the most sustainable retailer on the Dow Jones Sustainability Index. Inditex was given some of the highest scores in the fashion sector in multiple categories, most notably Supply Chain Management.
1 | Unilever
With a truly diversified portfolio ranging from foods, soaps, shampoos and everyday household products, Unilever is the world leader in consumer goods. In 2018, Unilever was recognised as a global leader for its actions and strategies which aim to manage carbon emissions and climate change across its supply chain. Assessed by non-profit environmental disclosure platform, CDP, Unilever was ranked amongst just 2% of 3,300 companies to be awarded a position on its leader board. As Unilever’s Chief Supply Chain Officer, Marc Engel, says: “Disclosure through CDP helps us understand our upstream footprint better, what initiatives key suppliers have embarked on to reduce emissions associated with goods and services purchased, and to uncover opportunities for collaboration. Transparency and reporting are vital in building trust among consumers, customers, the communities we operate in, employees and also with our investors.”