May 17, 2020

Samsung tops Gartner's Asian supply chain top 25

Samsung
Gartner
gartner research and advisory
Lenovo
Freddie Pierce
3 min
shutterstock samsung-related pic
Research firmGartnerhas published its annual table of the top 25 supply chains in the Asia Pacific region, with Samsung claiming top spot again. The go...

Research firm Gartner has published its annual table of the top 25 supply chains in the Asia Pacific region, with Samsung claiming top spot again.

The goal of global research and advisory firm Gartner’s annual Supply Chain Top 25 research initiative is to raise awareness of the supply chain discipline and how it impacts the business.

Samsung Electronics, retained its leadership position among companies in Asia Pacific, moving up five slots in the worldwide ranking from No. 13 to No. 8. With a vision of gaining competitive advantage through product and process excellence, it achieved first place in 2012 for smartphone and overall mobile phone sales worldwide. The company's advanced and highly integrated supply chain spans product, process and people, a key reason for Samsung's success.

Lenovo (no. 2) moved up two spots from 2012, backed by impressive revenue growth and inventory turns. It also improved its global ranking by 23 spots, placing the organization at No. 20 for 2013. Lenovo's hybrid supply chain model demonstrates advanced segmentation and supply chain analytic capabilities, which helped the company to reduce costs while significantly improving delivery performance. With over one-half of all its global sales coming from Asia Pacific and Latin America, Lenovo's continued focus on this region, coupled with an improved speed to market, accelerated its move toward leadership in an otherwise depressed global PC sector.

Five new companies entered the top 10 in 2013 compared to last year - Haier, Flextronics, Honda Motor, Canon and LG Electronics.

Gartner research director Debashis Tarafdar said supply chain executives could apply the best practices from these leaders to improve their operations in the region.

“Mixed economic performance, volatility of demand, rising costs, a tighter labor market, a shortage of talent and regulatory pressures continue to weigh on Asia Pacific supply chains in 2013,” said Tarafdar.

Despite some key challenges, supply chain leaders in Asia Pacific demonstrated commitment to demand-driven excellence.

“To improve long-term supply chain stability, we see many organizations investing significant resources in re-evaluating their supply network, developing lean manufacturing practices and creating multitier supply chain visibility,” said Tarafdar.

“As supply chains increasingly become a key differentiator and an enabler of business growth, talent acquisition and retention assumed high priority as well. In addition, most organizations adopted either a hybrid or local leadership model that effectively addresses the cultural differences between various countries.”

The Asia Pacific top 10 reflects these trends (see Table 1). Overall, the three-year weighted average revenue growth for the top 10 Asia Pacific companies slowed down almost 25 percent year over year.

Table 1. 2013 Gartner Supply Chain Top 10: Asia Pacific

2013 Asia/Pacific Ranking

2013 Overall Ranking

Company

Return on Assets (ROA) 1

Inventory Turns 2

Revenue Growth3

Composite Score 4

1

8

Samsung

11.6%

18.5

15.7%

4.35

2

20

Lenovo

2.5%

22.2

29.8%

2.75

3

32

Haier

9.0%

10.5

17.3%

1.85

4

33

Hyundai Motor

9.3%

18.6

8.4%

1.85

5

36

Tata Motors

7.0%

6.3

33.1%

1.73

6

58

Toyota Motor

1.0%

10.7

-2.5%

1.39

7

71

Flextronics

3.8%

7.7

2.7%

1.24

8

85

Honda Motor

2.7%

6.7

-7.1%

1.03

9

91

Canon

6.0%

3.3

0.8%

0.90

10

94

LG

-1.6%

20.0

-6.8%

0.86

 

 

2013 Top 10 Average

5.1%

12.4

9.1%

1.79

 

 

2012 Top 10 Average

6.1%

12.2

12.2%

1.76

 

 

Average % change (2012 to 2013)

-16.4%

2.2%

-25.1

 

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Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

supplychain
Boeing
Airbus
tariffs
3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic. 

Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years. 

It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC. 

The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn. 

In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products. 

Boeing-Airbus dispute by the numbers  

  • The dispute began in 2004
  • Tariffs suspended for 5 years 
  • $11.5bn worth of goods affected by tariffs
  • $3.3bn in duties paid by businesses to date 
  • 15% levy on aircraft and 25% on non-aircraft goods suspended

Both sides welcome end to tariffs 

European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.

“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.

Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”. 

The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."

This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.

Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”

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