2018 Supply Chain Top 25 Rankings released by Gartner

McDonald's Joins the "Masters" Category as it joins others in embracing "digitization"

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Gartner, Inc.’s annual held last week in Phoenix, AZ provided the platform for the release of its Supply Chain Top 25, which identifies industry “best practices.”

Unilever scored the top spot for the third year in a row, followed by Inditex, Cisco, Colgate-Palmolive and Intel. Home Depot rejoined the ranking after a three-year hiatus, while Novo Nordisk and Adidas joined the Supply Chain Top 25 for the first time.

“The ranking consists of an impressive group of leaders with valuable lessons to share, including three recent entrants from the life sciences, retail and consumer products sectors,” said , research vice president at Gartner. Longtime supply chain leader and last year's runner-up McDonald’s joined Apple, P&G and Amazon in qualifying for the “Masters” category, which Gartner introduced in 2015 to recognize sustained leadership over the last 10 years.

vice president of industry & solution strategy for Infor Retail, was among those executives attending the Gartner event. He told SCMR in an interview that the “main takeaway” for him was the discussion on digitization. “At this point, a retailer has either embraced it completely, or has accelerated plans to implement it soon. For the laggards, it may be too late.”

He said that the same holds true for the food services industry, which was echoed by Gartner:

"The key to McDonald's success is skillful orchestration across a network of strategic suppliers, service providers and thousands of companies and franchise-owned stores worldwide," said Aronow. "The company is also experimenting with digital supply chain capabilities like augmented reality to manage storerooms, so staff can spend more time with the customer."

Rank

Company

Peer Opinion1
(184 voters)
(25%)

Gartner Opinion1
(42
voters)
(25%)

Three-
Year Weighted ROA2
(20%)

Inventory Turns3
(10%)

Three-
Year Weighted Revenue Growth4
(10%)

CSR Component Score5
(10%)

Composite Score6

1

2,413

667

10.3%

7.5

2.6%

10.00

6.36

2

1,254

345

16.5%

3.9

10.9%

10.00

4.85

3

785

541

7.9%

13.1

-0.4%

10.00

4.41

4

898

324

17.6%

5.1

-2.2%

10.00

4.40

5

831

499

8.9%

3.6

4.8%

10.00

4.36

6

1,349

270

17.4%

3.8

6.8%

6.00

4.25

7

1,326

426

6.4%

4.8

-0.2%

10.00

4.21

8

1,094

391

7.3%

8.8

-0,6%

10.00

3.99

9

760

193

18.1%

2.8

7.8%

10.00

3.96

10

1,040

186

20.4%

11.8

9.2%

4.00

3.85

11

783

198

14.0%

4.1

1.4%

10.00

3.56

12

737

410

4.8%

5.2

-0.5%

10.00

3.55

13

121

49

37.9%

1.2

5.3%

10.00

3.37

14

390

354

7.3%

8.4

0.2%

10.00

3.30

15

999

210

9.6%

2.9

4.6%

8.00

3.26

16

651

227

9.2%

1.0

7.6%

10.00

3.25

17

907

117

10.7%

14.6

9.8%

9.00

3.22

18

880

322

6.2%

2.7

2.8%

6.00

3.08

19

470

281

6.9%

4.4

-0.5%

10.00

3.02

20

1,416

256

6.2%

8.3

1.6%

3.00

2.98

21

619

133

13.6%

6.7

-1.6%

8.00

2.96

22

1,558

221

4.6%

4.8

-10.1%

4.00

2.87

23

431

78

18.6%

5.1

6.7%

5.00

2.81

24

821

115

6.8%

2.9

13.5%

7.00

2.58

25

679

118

4.1%

4.2

6.0%

10.00

2.45

Notes:

  1. Gartner Opinion and Peer Opinion: Based on each panel's forced-rank ordering against the definition of "DDVN orchestrator."
  2. ROA: (2017 net income/2017 total assets)*50% + (2016 net income/2016 total assets)*30% + (2015 net income/2015 total assets)*20%.
  3. Inventory Turns: 2017 cost of goods sold/2017 quarterly average inventory.
  4. Revenue Growth: (Change in revenue 2017-2016)*50% + (change in revenue 2016-2015)*30% + (change in revenue 2015-2014)*20%.
  5. CSR Component Score: Index of third-party corporate social responsibility measures of commitment, transparency and performance.

6. Composite Score: (Peer Opinion*25%) + (Gartner Research Opinion*25%) + (ROA*20%) + (Inventory Turns*10%) + (Revenue Growth*10%) + (CSR Component Score*10%). 2017 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.

Source:



About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [ protected]

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