Airlines were not part of the competition. Neither were package delivery companies or shipping companies.Supply chain power houses such as UPS, FedEx, IBM, and Google were also omitted from consideration for various reasons.
So who made the 12th annual rankings of the Top 25 Supply Chain in the world 2016? Well, metrics clearly worked in the favor of large, multi-national, public companies whose domination on the list is complete. As we list the five top supply chain performers, bear in mind peer voters and Gartner’s analysts account for 50 percent of the rankings alongside metrics such as inventory turns, return on assets, and the new category “corporate social responsibility” (CSR). The CSR addition likely cost Amazon a repeat of last year’s No. 1 placement as the online giant does not issue such reports, a peer voter notes in MH&L News.
Here’s a summary of what the experts said:
1. Unilever (#3)
Gartner analysts were more taken with Unilever than the peer voters who favored Amazon. But since Unilever scored a perfect 10 on corporate social responsibility while Amazon, due to its lack of CSR reports, was left with no points at all, the consumer goods producer claimed the top spot. Gartner noted last year sustainable living is the mantra of Unilever, which in close cooperation with global suppliers have achieved the goal of sending zero waste to landfill across its global factory network. New regional operational centers established in 2015 that support the company’s customer order-to-cash process has also resulted in significant cost savings, according to MH&L News.
2. McDonald’s (#2)
Breakfast is king at McDonald’s, which holds onto No. 2 even as the national media keep predicting its demise. The fast-food giant’s stellar supply chain can be credited for the success of the recent addition of all-day breakfast items and its collaboration with suppliers remains a key competitive advantage. And when it comes to inventory turns, the competition does not stand a chance; McDonald’s rate of 156 is 10 times higher than that of Samsung, its closest pursuer.
3. Amazon (#1)
Some question if Amazon should even be on the list as the online retailer is “dabbling” in logistics with the development of delivery drones and its own global package delivery service as well as its own U.S. cargo operation. What is not in question, however, is the effectiveness of Amazon’s supply chain that allows for same-day delivery and consistently push the limits for what is considered possible.
4. Intel (#4)
Parked at No. 4 just like in 2015, the chipmaker for high-tech gadgets is leveraging its supply chain to serve as the guinea pig for new products developed by its division for the Internet of Things. The goal of that endeavor is “to improve the visibility of both inbound deliveries and outbound shipments.” At its disposal, the company has 16,000 suppliers across 100 countries.
5. H&M (#7)
Three weeks. That is all it takes for the Swedish fast-fashion retailer to being a product from design to store delivery. Even as the company has embraced omni-channel distribution, e-commerce does not appear to be taking the place of its brick-and-mortar stores any times soon; in 2016, H&M plans to open 425 stores in mainly the United States and China.