May 17, 2020

Top 25 Supply Chains named by Gartner

Supply Chain
Supply Chain Rankings
Supply Chain Solutions
Supply Chain
Freddie Pierce
4 min
More hands are joining the fight against Apple’s supply chain, calling on the technology company to protect manufacturing workers from abuse, injury and death
Gartner, Inc. has released the findings from its seventh annual Supply Chain Top 25 from this year's research at the Gartner Supply Chain Executive...

Gartner, Inc. has released the findings from its seventh annual Supply Chain Top 25 from this year's research at the Gartner Supply Chain Executive Conference.

"Four key themes emerged this year among the leaders, including how they deal with volatility, their approaches to value chain network integration, their focus on sustainable execution and their abilities to orchestrate," Debra Hofman, research vice president at Gartner, said.

Gartner analysts said one of the trends they've seen over the last several years is a move from the notion of "supply chain" to "value chain" and a concomitant increase in the span of control of the supply chain organization.

"The old image of a supply chain organization limited to either inbound materials management or logistics, with procurement, planning, manufacturing and customer service as totally separate functions, is fading," Hofman said. "The consumer-oriented companies, with their need to renew product lines constantly and their appetite for downstream data, have led the way in this change.”

Apple held onto the No. 1 position for the fourth year in a row. The company continued to post strong financials and top-of-the-line voting scores. Research In Motion, which was new to the list last year, rose to No. 4 this year with enviable financials and solid votes.

Amazon, another newcomer last year, rose five spots to No. 5 in the 2011 ranking. Colgate-Palmolive, rising steadily since 2009, moved to No. 13 this year.

 

The Gartner Supply Chain Top 25 for 2011

 

 

Rank

 

Company

 

Peer
Opinion1
(156
Voters)
(25%)

 

Gartner
Opinion1
(32
Voters)
(25%)

 

Three-
Year
Weighted
ROA2
(25%)

 

Inventory
Turns3
(15%)

 

Three-
Year
Weighted
Revenue
Growth4
(10%)

 

Composite
Score5

1

 

Apple

 

2,950

 

536

 

17.9%

 

49.3

 

40.9%

 

8.50

2

 

Dell

 

1,909

 

457

 

6.6%

 

38.9

 

4.1%

 

5.14

3

 

P&G

 

1,726

 

660

 

9.6%

 

5.6

 

2.4%

 

5.13

4

 

Research In Motion (RIM)

 

550

 

215

 

25.1%

 

17.7

 

43.9%

 

5.10

5

 

Amazon

 

2,267

 

402

 

6.6%

 

11.2

 

34.0%

 

5.07

6

 

Cisco Systems

 

1,501

 

550

 

10.2%

 

11.8

 

5.5%

 

4.82

7

 

Wal-Mart Stores

 

1,755

 

449

 

9.0%

 

8.5

 

3.6%

 

4.40

8

 

McDonald's

 

711

 

161

 

15.3%

 

141.8

 

2.6%

 

4.35

9

 

PepsiCo

 

740

 

445

 

12.0%

 

7.8

 

18.8%

 

4.11

10

 

Samsung

 

857

 

361

 

9.8%

 

16.9

 

22.5%

 

3.98

11

 

The Coca-Cola Company

 

1,305

 

265

 

15.3%

 

5.3

 

7.9%

 

3.96

12

 

Microsoft

 

566

 

128

 

21.4%

 

16.6

 

6.1%

 

3.72

13

 

Colgate-Palmolive

 

560

 

239

 

20.0%

 

5.1

 

3.0%

 

3.62

14

 

IBM

 

994

 

238

 

12.5%

 

21.1

 

0.8%

 

3.60

15

 

Unilever

 

449

 

459

 

11.5%

 

5.3

 

5.2%

 

3.53

16

 

Intel

 

871

 

247

 

13.6%

 

4.5

 

9.7%

 

3.37

17

 

HP

 

949

 

331

 

7.0%

 

14.3

 

6.7%

 

3.28

18

 

Nestle

 

389

 

62

 

22.6%

 

5.5

 

0.8%

 

3.05

19

 

Inditex

 

376

 

180

 

16.9%

 

4.4

 

10.5%

 

3.05

20

 

Nike

 

781

 

144

 

13.0%

 

4.7

 

3.3%

 

2.72

21

 

Johnson & Johnson

 

548

 

121

 

13.4%

 

3.6

 

-0.3%

 

2.38

22

 

Starbucks

 

544

 

127

 

10.6%

 

8.6

 

5.1%

 

2.35

23

 

Tesco

 

524

 

190

 

5.3%

 

18.3

 

8.0%

 

2.34

24

 

3M

 

760

 

7

 

13.2%

 

4.6

 

5.8%

 

2.25

25

 

Kraft Foods

 

471

 

192

 

4.4%

 

5.9

 

15.6%

 

2.03

Notes on Scoring:

1. Gartner Opinion and Peer Opinion:Based on each panel's forced-rank ordering against the definition of "DDVN Orchestrator"
2. Return on Assets (ROA): ((2010 net income / 2010 total assets) * 50%) + ((2009 net income / 2009 total assets) * 30%) + ((2008 net income / 2008 total assets) * 20%)
3. Inventory Turns: 2010 cost of goods sold / 2010 quarterly average inventory
4. Revenue Growth: ((change in revenue 2010-2009) * 50%) + ((change in revenue 2009-2008) * 30%) + ((change in revenue 2008-2007) * 20%)
5. Composite Score: (peer opinion * 25%) + (Gartner opinion*25%) + (ROA*25%) + (inventory turns * 15%) + (revenue growth * 10%)

About the Gartner Supply Chain Top 25

Gartner analysts derive a master list of companies from a combination of sources, including the Fortune Global 500, the Fortune 1000 and the Forbes Global 2000. The primary source is the Fortune Global 500, which is pared down to the manufacturing and retail sectors.

Analysts then supplement this group with companies from the Fortune 1000 that fall between $10 billion in revenue and the smallest revenue on the Global 500 list, as well as select companies from the Forbes Global 2000.

Edited by Kevin Scarpati

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Jun 21, 2021

Elon Musk's Boring Co. planning wider tunnels for freight

BoringCompany
supplychain
freight
elonmusk
2 min
Elon Musk’s tunnelling firm plans underground freight tunnels with shipping containers moved on “battery-powered freight carriers”, according to reports

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. 

Elon Musk Tweet

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

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