May 17, 2020

Gartner Top European Supply Chain Organizations 2013

Gartner
Unilever
h&m
Nestle
Freddie Pierce
4 min
How to make your supply chain a winner, part 2
Leading industry researcher and adviser Gartner, has revealed its annual ranking of the Top 15 supply chain organizations headquartered in Europe at it...

Leading industry researcher and adviser Gartner, has revealed its annual ranking of the Top 15 supply chain organizations headquartered in Europe at its annual Supply Chain Executive Conference, which took place in London this week.

Gartner identified the top 15 performers headquartered in Europe, based on a combination of financial metrics (revenue growth, return on assets [ROA] and inventory), and the opinion of peers and Gartner supply chain analysts.

The top five includes four companies from last year — Unilever, Inditex, H&M and Nestlé (that were also listed in Gartner’s Global Supply Chain Top 25) — and one new entrant, BASF, which has improved its position steadily. Four new companies joined the European top 15 ranking this year: Danone, L'Oréal, Diageo and GlaxoSmithKline (GSK).

Christian Titze, Research Director at Gartner, said: "Top European supply chains span the automotive, chemical, consumer products, life science and retail sectors and are headquartered in a variety of European countries, including France, Germany, Spain, Sweden, Switzerland and the UK.

"Supply chain executives can use Gartner's analysis of these leaders to develop and implement more integrated, collaborative and demand-driven supply chain strategies."

Unilever continues to climb higher in the rankings in 2013, to achieve fourth position on the global Supply Chain Top 25, while maintaining the No. 1 ranking in Europe. Unilever has continued to improve its financial performance and voting scores, demonstrating supply chain excellence and leadership year over year.

Spain's leading fashion retail group, Inditex, maintained the No. 2 position in Europe and reached twelfth position in the global Supply Chain Top 25 in 2013. The company demonstrates continuous growth and leadership, in an often fickle fashion environment, through its ability to manipulate the finer details of its end-to-end supply chain. Inditex also understands its consumers and is highly sensitive to trends. In addition, it effectively engages with social media and often shapes the fashion agenda.

Another fashion retailer, Sweden-based H&M, ranks No. 3 in Europe and seventeenth globally. This fast-moving retailer also uses social media effectively to sense what young and fashionable shoppers want. It is highly proficient at managing its product life cycles and can refresh its fashion ranges many times within retail seasons.

Nestlé, the Swiss food giant with diverse lines of business, maintains the No. 4 spot in Europe. Vendor management, the use of network modeling and a focus on sustainability have been crucial to improving its supply chain performance.

At No. 5, BASF, the Germany-based chemical giant, has been on the top 25 list for three consecutive years, and has improved in all categories this year. BASF has a complex value network that operates across several large sites around the world, with the output from one process used as primary material in another. This system requires complex design and operating schemes.

"Top European-headquartered supply chains bring a wide range of best practices to the supply chain community, ranging from advanced collaboration practices with upstream and downstream partners, to innovations in demand sensing and shaping capabilities, to integrated business planning that brings sales and operations planning to the next level," Mr. Titze said.

Gartner Supply Chain Top 15, Europe

2013 Ranking, Europe

2013 Ranking, Overall

Company

Return on Assets (ROA)1

Inventory Turns2

Revenue Growth3

Composite Score4

1

4

Unilever

10.5%

6.5

9.0%

5.04

2

12

Inditex

18.0%

4.2

13.4%

3.85

3

17

H&M

28.2%

3.7

6.7%

3.22

4

21

Nestlé

13.3%

5.1

-0.6%

2.51

5

27

BASF

8.4%

5.7

13.3%

2.29

6

29

BMW

3.7%

5.7

13.8%

2.00

7

31

Volkswagen

6.0%

5.3

22.3%

1.88

8

37

AstraZeneca

14.4%

2.6

-7.8%

1.67

9

41

Danone

6.4%

9.3

10.8%

1.63

10

42

L'Oréal

9.4%

3.2

8.8%

1.61

11

43

Syngenta

9.2%

1.7

8.9%

1.57

12

45

British American Tobacco

13.5%

0.9

1.3%

1.54

13

48

Tesco

2.9%

16.6

3.7%

1.52

14

49

Diageo

8.9%

1.1

5.6%

1.51

15

51

GlaxoSmithKline (GSK)

10.1%

2.0

-2.8%

1.47

1. ROA: ([2012 net income/2012 total assets] x 50%) + ([2011 net income / 2011 total assets] x 30%) + ([2010 net income / 2010 total assets] x 20%)
2. Inventory Turns: 2012 cost of goods sold/2012 quarterly average inventory
3. Revenue Growth: ([change in revenue 2012-2011] x 50%) + ([change in revenue 2011-2010] x 30%) + ([change in revenue 2010-2009] x 20%)
4. Composite Score: (peer opinion * 25%) + (Gartner opinion * 25%) + (ROA * 25%) + (inventory turns x 15%) + (revenue growth x 10%)
2012 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.
Rankings for tied composite scores are determined using a next-decimal-point comparison.

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Jun 15, 2021

FedEx is Reshaping Last Mile with Autonomous Vehicles

FedEx
Logistics
LastMile
AutonomousVehicles
3 min
FedEx is expanding a trial of autonomous vehicles in its last-mile logistics process with partner Nuro, including multi-stop and appointment deliveries

FedEx is embarking on an expanded test of autonomous, driver-less delivery vehicles to develop its last-mile logistics. 

The US logistics firm piloted autonomous vehicles from Nuro in April this year, and the pair will now explore that further in a multi-year partnership. Cosimo Leipold, Nuro’s head of partnerships, said the collaboration "will enable innovative, industry-first product offerings that will better everyday life and help make communities safer and greener". 

FedEx will explore a variety of on-road use cases for the autonomous fleet, including multi-stop and appointment-based deliveries, going beyond more traditional applications of the technology in single-route movement of goods from A-B. Exponential growth in ecommerce is spurring its broader experimentation in new autonomy solutions, Fed-Ex says, both in-warehouse and on-road. 

“FedEx was built on innovation, and it continues to be an integral part of our culture and business strategy,” said Rebecca Yeung, Vice President, Advanced Technology and Innovation, FedEx Corporation. “We are excited to collaborate with an industry leader like Nuro as we continue to explore the use of autonomous technologies within our operations.”

 

The changing role of couriers 

Unlike structured delivery networks, operating under long-term partnerships and contracts, agility is where couriers deliver true value - and their ability to deftly solve last-mile fulfilment has most acutely been felt during the pandemic. For the billions of people around the world forced to stay at home to protect themselves and their communities from the spreading COVID-19 virus, couriers have been a constant. They may have been the only knock at the door some people experienced for weeks or months at a time. 

But the last-mile has been uprooted by a boom in ecommerce, a shift that has been most apparent in the UK, US, China and Japan, according to the Global Parcel Delivery Market Insight Report 2021 by Apex Insight. These are markets with dominant economies and populations used to running their lives with a tap of a screen or double-click of a mouse. 

“Getting last mile delivery right has long been a challenge for retailers,” says Kees Jacobs, Vice President, Consumer Goods and Retail at Capgemini. “In 2019, 97% of retail organisations felt their last-mile delivery models were not sustainable for full-scale implementation across all locations. Despite increasing demand from customers, companies were struggling to make the last mile profitable and efficient.”

Jacobs says that the pandemic alleviated some of these stresses in the short term. With no other option, consumers were understanding and tolerant, if not entirely happy, with longer delivery times and less transparent tracking. “But, as extremely high delivery demand continues to be normal, customers will expect brands to contract their delivery times,” he adds. 

Last mile's role in ESG

Demand and volume weren’t the only things that have changed during the pandemic - businesses looked closer to home and as a result became more sustainable. Bricks and mortar stores were transformed from mini-showrooms to quasi-fulfilment centres. Online retailers and other businesses sought local solutions to ship more faster. In densely populated London, UK alone, Accenture found that delivery van emissions dropped by 17%, while Chicago, USA and Sydney, Australia saw similar emissions savings. 
 

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