2012 Top Supply Chain List Compiled by Gartner
Apple ranked number one in a list of top 25 supply chains for the second year in a row, according to analyst firm Garnter. The news was announced at the firm’s recent supply chain executive conference, held May 21-23 in Palm Desert, California. Following on the tradition of AMR, acquired by Gartner in 2010, the list marked the 8th of its type to be compiled.
Amazon.com jumped to second place, rising from fifth in 2011, followed by McDonald’s, Dell, Proctor and Gamble, Coca-Cola, Intel, Cisco, Walmart and Unilever.
While the list saw a number of repeat players, some new faces appeared as well as the lack of well-established companies who had made the list in recent years. Newcomers to the list included engine maker Cummins, consumer packages goods distributor Kimberly-Clark, apparel retailer H&M and industrial equipment manufacturer Caterpillar.
Gartner Supply Chain Executive Conference in Sydney
2011 rankers IBM, Tesco, Kraft and Microsoft were absent from the list, but Gartner notes that IBM and Microsoft were excluded from eligibility based on the fact that too high a percentage of the companies’ income is now based on revenue garnered from services versus physical products.
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Results are based on a combination of objective (financial) and subjective measures, namely Returns on Assets (ROA), revenue growth, inventory turns, and the input of Gartner’s analysts and industry professionals. Weighting of the gathered data includes 50% based on financial measures, 25% based on Gartner’s own analyst opinions with the remaining 25% based on a survey of supply chain professionals. This year 173 “peer” responses were taken into account.
Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany