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Egham, U.K., September 11, 2014

Gartner Announces Ranking of Top European Supply Chain Organizations for 2014

Regional Supply Chain Leaders Were Revealed at Gartner Supply Chain Executive Conference 2014, September 10-11 in London

Gartner, Inc., has revealed its annual ranking of the Top 15 supply chain organizations headquartered in Europe at its annual Supply Chain Executive Conference, which took place in London this week.

Gartner identified the top 15 performers, based on a combination of financial metrics (revenue growth, return on assets [ROA] and inventory), and the opinion of peers and Gartner supply chain analysts (see Table 1).

"The top three companies, Unilever, Inditex and H&M are unchanged from last year as they've continued to lead the pack in supply chain excellence, and Seagate made its debut in the No. 4 spot," said Stan Aronow, research vice president at Gartner. In addition to Seagate, three new companies joined the European top 15 ranking in 2014; Ahold, Delphi Automotive and Reckitt Benckiser.

Table 1. Gartner Supply Chain Top 15, Europe

2014 Europe Rank

2014 Overall Rank

Company

Return on Assets (ROA) 1

Inventory Turns 2

Revenue Growth 3

Composite Score 4

1

4

Unilever

9.9%

6.9

2.6%

5.32

2

11

Inditex

17.7%

3.9

9.1%

3.99

3

13

H&M

26.7%

3.6

6.4%

3.83

4

20

Seagate Technology

19.5%

12.5

8.1%

2.75

5

25

Nestlé

8.3%

5.4

1.5%

2.30

6

26

L'Oréal

9.5%

3.0

5.1%

2.28

7

31

BMW

3.9%

5.8

5.7%

1.94

8

34

GlaxoSmithKline

12.2%

2.1

-1.6%

1.86

9

35

Diageo

9.5%

1.1

5.9%

1.81

10

38

Ahold

11.6%

16.4

3.0%

1.78

11

39

Delphi Automotive

11.2%

11.7

5.3%

1.76

12

40

BASF

8.1%

5.8

3.7%

1.76

13

43

Volkswagen

4.7%

5.4

12.5%

1.74

14

45

Reckitt Benckiser

11.8%

5.3

5.2%

1.66

15

46

Syngenta

8.7%

1.6

6.6%

1.64

Notes:

1. Gartner Opinion and Peer Opinion: Based on each panel's forced-rank ordering against the definition of "(demand-driven value network) orchestrator."

2. ROA: ((2013 net income / 2013 total assets) * 50%) + ((2012 net income / 2012 total assets) * 30%) + ((2011 net income / 2011 total assets) * 20%).

3. Inventory Turns: 2013 cost of goods sold / 2013 quarterly average inventory.

4. Revenue Growth: ((change in revenue 2013-2012) * 50%) + ((change in revenue 2012-2011) * 30%) + ((change in revenue 2011-2010) * 20%).

5. Composite Score: (Peer Opinion * 25%) + (Gartner Research Opinion * 25%) + (ROA * 25%) + (Inventory Turns * 15%) + (Revenue Growth * 10%).

2013 data used where available. Where unavailable, latest available full-year data used. All raw data normalized to a 10-point scale prior to composite calculation. "Ranks" for tied composite scores are determined using next decimal point comparison.     

Source: Gartner (September 2014)

Unilever has, once again, held onto the No. 1 position in the top 15 rankings in Europe and is ranked fourth in this year's global top 25. For Unilever, transformation is a state of mind, rather than a singular event. Unilever's "Partner to Win" supplier collaboration programme is a key contributor to the company's sustainability agenda to halve its environmental impact by 2020.

Spain's leading fashion retail group, Inditex, maintained the No. 2 spot in Europe and moved up one place to No. 11 on the global top 25. Supply chain control through ownership and in-house execution remains a cornerstone strategy for Inditex. By connecting digital and physical retail, expanding successful country operations and planning sensibly, the retailer is a leading example of how to properly adapt to the ever-changing retail landscape.

Another fashion retailer, Sweden-based H&M, placed at No. 3 in Europe has moved up four places to rank No. 13 globally. H&M has developed a sophisticated supply chain, claiming industry-leading design to in-store times and replenishment systems that are better than other global players in the fast-moving global fashion market.

Seagate, the Irish-registered manufacturer of storage devices, is new to the Gartner European top 25. It debuted in the No. 4 spot in Europe and ranked twentieth in the global top 25. The company showcased an impressive array of operational excellence and customer connection programs, and a return on assets that is second only to Apple on the high-tech list.

In 2014, global food and beverage multinational, Nestle, moved to the No. 5 spot in Europe and the No. 25 spot globally. Nestle has been very active across several global initiatives to improve the profitability and sustainability of cocoa farms, in an effort to advance living conditions for local farmers. It also has programs focused on biodiversity, such as the Nestle First Milk Sustainability Partnership.

"The underlying trend of an evolving two-speed Europe has become more prominent in 2014. Some European countries have enjoyed continued economic growth with good prospects of mass employment, while others have barely emerged from deep recessions and are battling to sustain economic recovery. Whatever the future might hold for the continent, Europe's leading organizations will continue to use their supply chain functions to drive sustainable growth, execute consumer- driven strategies, and ensure good governance and corporate citizenship." said Mr. Aronow.

Additional information is available in "2014 Gartner Supply Chain Top 25: Europe" at http://www.gartner.com/document/2842718

About the Gartner Supply Chain Top 25

The Supply Chain Top 25 rankings comprise two main components: financial and opinion. Public financial data gives a view of how companies have performed in the past, while the opinion component provides an eye to their future potential and reflects their expected future leadership, a crucial characteristic. These two components are combined into a composite score. Gartner analysts derive a master list of companies from the Fortune Global 500 and the Forbes Global 2000, with a revenue cut-off of $10 billion. Gartner then pares the combined list down to the manufacturing, retail and distribution sectors, thus eliminating certain industries — such as financial services and insurance.

About Gartner

Gartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 15,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

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