2016 Supply Chains to Admire Report Posted
By Alex Batty, MHI Marketing Communications Coordinator |@mhi_alex
For the last three years, Supply Chain Insight has conducted its Supply Chains to Admire analysis. They are trying to fill a gap in supply chain excellence standards by providing research and data that supply chain companies can use to drive their progress.
Effectiveness Ratings
To determine the effectiveness of companies, they use a three-step methodology for analysis:
- Evaluate supply chain improvement using the supply chain index
- Determine relative value position against peers for price to tangible book
- Select higher performing companies against performance factors (on growth, operating margin, inventory turns and return on invested capital)
Three categories of effectiveness are then used to rate companies: winners, finalists, and underperformers.
Winners met all the criteria of improvement, value, and performance, when compared to peers and is considered the ‘high-performance category’.
Finalists use higher levels of improvement and value in comparison to peers, and are within 10% of the industry average on three of four performance factors.
Underperformers compose the rest of the companies, roughly 88% of the field.
Results
Supply Chain Insights looked at companies in 19 categories and rated the following at winner and finalist levels:
Apparel: Carter’s Inc. – winner; PVH Corp, Under Armour, VF Corporation – finalist
B2B Technologies: Cisco Systems – winner; EMC Corporation, Qualcomm Inc. – finalist
Beauty: L’Oreal – winner; Estee Lauder – finalist
Beverages: Coca-Cola – finalist
Chemical: BASF SE – winner
Consumer Electronics: Apple – winner; VTech Holdings – finalist
Contract Manufacturing: Celestica Inc. – finalist
Food: Hersey – finalist
Furniture: Steelcase Inc. – winner
Grocery Retailer: Whole Foods – winner
Heavy Equipment: Cummins – winner; Caterpillar, United Tractors – finalist
Household Products: Clorox – winner
Mass Merchants: CVS, Dollar Tree, Target, Walmart – winners; Lowe’s – finalist
Medical Device: Edwards Lifesciences – winner; Becton, Dickinson and Company, Coloplast A/S, Medtronic – finalist
Oil & Gas: Statoil ASA – finalist
Restaurants: Chipotle – finalist
Retail Apparel: Lululemon Athletica, TJX Companies – finalist
Semiconductor: Taiwan Semiconductor – winner; Intel – finalist
Tires: Cooper Tire, Rubber Company – winner
About Supply Chain Insights
Supply Chain Insights is focused on delivering independent, actionable and objective advice for supply chain leaders. If you need to know which practices and technologies make the biggest difference to corporate performance, turn to us. We are a company dedicated to this research. We help you understand supply chain trends, evolving technologies and which metrics matter. We want to be the first place that supply chain leaders turn to help their supply chain teams get better.
To read the full report, visit http://supplychaininsights.com/2016-supply-chains-to-admire/
