Understanding the 2016 Gartner Top 25 Supply Chain Rankings

Here is Dan Gilmore’s interesting comment on the Gartner Top 25 Supply Chain companies  (See my earlier post.)  Of course, it is all about marketing for Gartner, who makes money from consulting with these and other firms.  Still, the debate over metrics is interesting, and hones our critical thinking skills.

Clearly corporate social responsibility (CSR) is increasing in importance for supply chain professionals. There  is a lot of talk about it in the profession, saving energy and carbon and the like, as well as the ‘triple-E’ message of sustainability (economy, ecology, equity); customers are asking as well.   It’s a good idea to use some triple-E measurement on our own supply chains.

Supply Chain Digest Logo

Dissecting this Year’s List, as New Corporate Social Responsibility Factor Added to Scoring Mix

Source: Understanding the 2016 Gartner Top 25 Supply Chain Rankings

California Sustainable Freight Action Plan

California has released its Sustainable Freight Action Plan. It’s a great project, and as usual, the state is a leader, here making significant moves guiding improvement in the freight transportation triple bottom line.

screenshot-dot.ca.gov 2016-05-23 10-27-38

Source: California Sustainable Freight Action Plan  Read it online at the link. Here’s the actual plan:  pdf-icon-logo1  cfmp_appendix-complete

screenshot-metrans CITT logo 2016-05-23 10-59-49   Here’s a white paper from California State University Long Beach which was used in the deliberations.  PDF icon logoFreight Efficiency White Papers_Final Version

Gartner 2016 Supply Chain Top 25

It’s a stellar list, some old and some new.  The measures are based on Peer and Gartner opinions (50%), and Return on Assets (ROA), Inventory Turns, and three-year weighted Revenue growth (WRG3), which are 40%. There’s also a corporate responsibility measure, not a very discriminating one.

Again it is biased toward capital intensive firms, manufacturers and a very few distributors (Amazon, Schneider). Perhaps that’s how it should be, but the advances are coming faster elsewhere.  Notable absence: Caterpillar, which has graced the list in past years. Their revenue is down.  Interesting that 8 of the firms had negative 3 year WRG3.  Amazon topped the list with 20% WRG3.

Gartner, Inc. has released the findings from its annual Supply Chain Top 25, identifying supply chain leaders and highlighting their best practices.

Source: Gartner Announces Its Rankings of the 2016 Supply Chain Top 25 – Supply Chain 24/7

Here’s The Gartner Top 25 page. Most of the information can be reviewed free by registering with your email.