HIGHLIGHT
- Today’s differentiated supply chains are not only about efficient logistics, but organizations also need to understand customer value, invest and continuously improve technology, and promote innovation and celebrate successes against ESG targets
- Cisco tops the Gartner Supply Chain Top 25 for the second straight year, followed by Colgate-Palmolive and Johnson & Johnson finishing at second and third respectively. Four new companies joined this year’s list: Dell Technologies, Pfizer, General Mills and Bristol Myers Squibb.
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Lessons learned from leading supply chains
Over the past year, the supply chain has had to demonstrate an unprecedented level of agility and flexibility to rise to the challenges of the pandemic and other macroeconomic factors. Gartner argues that today’s differentiated supply chains are not only about efficient logistics, but organizations also need to understand customer value, invest and continuously improve technology, and promote innovation and celebrate successes against ESG targets.
- Use the emerging strength and current focus on your supply chain to not only drive “green” and people-related programs, but also to secure marketing budget to fund these initiatives and be part of the value proposition to customers and investors.
- Transform your supply chain to support new customer value propositions by building capabilities to enable “as-a-service” business models as well as business customer and consumer composable solutions.
- Evolve your transformation journey to become “digital first” by using technology to enable more seamless customer experiences and more automated and insightful decisions in supply and product management at scale.
The Gartner supply chain top 25 for 2021
Each year, Gartner analysts research the supply chains of hundreds of companies. Apart from peer opinions and Gartner opinion, the rankings are based on scores on key attributes such as ESG, three-year weight return on physical assets (ROPA), and revenue growth and inventory turns (2020 cost of goods sold/2020 quarterly average inventory). Below is the list of Top 25 companies, along with their composite scores:
*Composite Score: (Peer Opinion*25%) + (Gartner Research Opinion*25%)+ (ROPA*20%)+ (Inventory Turns*5%) + (Revenue Growth*10%) + (ESG Component Score*15%) + 2020 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.
Cisco tops the Gartner Supply Chain Top 25 for the second straight year, followed by Colgate-Palmolive and Johnson & Johnson finishing at second and third respectively. Four new companies joined this year’s list: Dell Technologies, Pfizer, General Mills and Bristol Myers Squibb.
Strong revenue growth, strength in environmental, social and governance (ESG) initiatives, and recognition of leadership in the community opinion polls drove Cisco to the top spot for the second consecutive year. Cisco’s agility helped the company prioritize video conferencing and critical infrastructure capabilities for hospitals and vaccine research.
Since 2015, we’ve also been acknowledging “Masters” to recognize sustained supply chain excellence. To be considered Masters, companies must have attained top-five composite scores for at least seven out of the past 10 years. All of last year’s Masters as Amazon, Apple, P&G, McDonald’s and Unilever qualified for the category this year, too. During times of disruption, these companies continue to lead by example and provide advanced lessons for the supply chain community.
Minh Ngô
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