Apple Supply Chain Secret

Only available on StudyMode
  • Download(s) : 94
  • Published : February 23, 2013
Open Document
Text Preview
SUPPLY CHAIN MANAGEMENT

25
Raising the Bar
The supply chain TOP

BY DEBRA HOFMAN AND STAN ARONOW, GARTNER, INC.

The 2012 ranking of supply chain leaders from Gartner includes a broad mix of global companies—a few new to the list, but most having recorded multiple appearances. These leaders
share certain characteristics that drive day-to-day performance while solidifying the foundation for future growth. Their standout performance is raising the supply chain leadership bar for
companies everywhere.

54

LOGISTICS MANAG EM EN T

WWW.LO G I STI C S M G MT.C O M | September 2012

G

artner’s Supply Chain Top 25, published since 2004, is an annual ranking of leaders in the global supply chain. At its core, the Supply Chain Top 25 is about demand-driven leadership. Every year, we identify the companies that push the envelope of supply chain innovation. Our goal is to raise

awareness of the supply chain discipline, as well as how
it impacts the business, and to catalyze the debate and
the cross-fertilization of ideas about what supply chain
excellence really means.
What Is the definition of excellence?
Our methodology, detailed below, is based on a composite score for each company that is made up of a set of nancials combined with an opinion component, providing a balance between objective and subjective components. In completing their ballots, voters are

asked to identify those
companies they believe
are furthest along the
journey toward the
demand-driven ideal,
as de ned in Gartner
research and on the
voting website.
What does it mean
to be demand-driven?
The chart, on page 56
captures the organiza-

September 2012 | W WW.LO G I STI C S M G MT.C O M

tional ideal of demand-driven principles as applied to
the global supply chain. This model has three overlapping areas of responsibility: Supply management—Planning, sourcing,
manufacturing, logistics.
Demand management—Marketing, sales, and
service.
Product management—R&D, engineering, and
product development.
Excellence is a matter of visibility, communication, and
reliable processes that link all three of these functional
areas together. When these processes work together, the
business can respond quickly and ef ciently to opportunities arising from market or customer demand. De ning characteristics of supply chains built to this design include the ability to manage demand rather than just respond to

it, a networked rather than linear approach to global supply, and the ability to embed innovation in operations rather than keep it isolated in the laboratory. The demand-driven
model is inherently circular and self-renewing, unlike the
push supply chains of our factory-centric industrial past.
Inside the numbers
In the 2012 ranking, the top ve contenders include three
perennials and two relative newcomers. (See table on
page 57 for the complete rankings.) First is Apple, maintaining its No. 1 position despite some bumps this year, using rst-to-market advantage, scale and brand to wield
supply chain as a competitive weapon. Already a stellar
performer on the nancial metrics we use for the ranking and well-respected in the voting portion of the methodology, Apple astoundingly raised the bar even further,

L O G I S T I C S MANAG E M E N T

55

Top 25 Supply Chains

known for its “last mile” distribution prowess, returns
at No. 6 with strong peer recognition and ROA—even
while it navigates the integration of its bottlers in North
America. Cisco returns at No. 8, setting the pace with
a robust risk management program and collaboration
up and downstream in its value chain. Ranked ninth,
Walmart remains a mainstay. And despite some challengDemand
Supply
es in the past year in Mexico, the company continues to
get a lot of respect from peer voters for its contributions
to supply chain best practices over the years.
Colgate rises to No. 11 this year on consistently
Product
industry-leading, double-digit...
tracking img