Press Release

Newsroom

Stamford, Conn, May 19, 2021

Gartner Announces Rankings of the 2021 Supply Chain Top 25

Cisco Systems Retains Top Position; Four New Companies Join Ranking

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

"In our 17th edition of the Supply Chain Top 25 we saw organizations continuing to deal with the effects of COVID-19 on their businesses. Therefore resiliency and agility capabilities became essential to survival," said Mike Griswold, vice president team manager with the Gartner Supply Chain practice. “Our ranking highlights companies that possess these strategies and other differentiating capabilities.”

Cisco Systems scored the top spot in the ranking for the second consecutive year, followed by Colgate-Palmolive, Johnson & Johnson, Schneider Electric and Nestlé (see Table 1). Four new companies joined this year’s list: Dell Technologies, Pfizer, General Mills, and Bristol Myers Squibb.

"Strong revenue growth, strength in environmental, social and governance (ESG) initiatives, and recognition of leadership in the community opinion polls drove Cisco to the top spot for the second consecutive year,” said Mr. Griswold. “Cisco’s agility helped them prioritize video conferencing and critical infrastructure capabilities for hospitals and vaccine research.”

To recognize sustained supply chain excellence, Gartner introduced the “Masters” category in 2015. To be considered Masters, companies must have attained top-five composite scores for at least seven out of the last 10 years. All of last year’s Masters - Amazon, Apple, P&G, McDonald’s, and Unilever - qualified for the category this year.

“During times of disruption, these companies continue to lead by example and provide advanced lessons for the supply chain community,” Mr. Griswold added. “The Supply Chain Top 25 offer a platform for insights, learning, debate and contributions to the rising influence of supply chain practices on the global economy.”

Table 1. The Gartner Supply Chain Top 25 for 2021

Rank

Company

Peer Opinion1
(195 voters)
(25%)

Gartner Opinion1
(42
voters)
(25%)

Three-
Year Weighted ROPA2
(20%)

Inventory Turns3
(5%)

Three-
Year Weighted Revenue Growth4
(10%)

ESG Component Score5
(15%)

Composite Score6

1

Cisco Systems

842

489

306.4%

13.6

-0.4%

10.00

6.37

2

Colgate-Palmolive

1217

557

65.9%

4.2

2.9%

10.00

5.58

3

Johnson & Johnson

1386

502

73.6%

3.0

1.8%

8.00

5.22

4

Schneider Electric

993

512

59.4%

4.9

-1.2%

10.00

5.07

5

Nestlé

1372

323

40.6%

4.2

-3.6%

10.00

4.41

6

Intel

687

421

37.0%

3.8

7.2%

10.00

4.40

7

PepsiCo

1003

351

43.0%

7.8

3.9%

10.00

4.37

8

Walmart

1668

311

15.3%

9.4

4.5%

8.00

4.23

9

L’Oréal

1062

234

69.9%

2.7

0.8%

10.00

4.05

10

Alibaba

1343

201

69.2%

20.9

44.4%

1.00

3.90

11

AbbVie

182

74

216.4%

4.4

22.5%

5.00

3.78

12

Nike

1189

249

33.1%

3.4

1.2%

8.00

3.60

13

Inditex

816

261

22.0%

3.8

-10.8%

10.00

3.51

14

Dell Technologies

614

293

30.4%

18.5

4.6%

8.00

3.47

15

HP Inc.

343

281

45.7%

8.0

0.8%

10.00

3.46

16

Lenovo

465

343

18.8%

10.4

4.5%

8.00

3.40

17

Diageo

511

259

37.2%

0.8

-2.4%

10.00

3.36

18

Coca-Cola Company

1350

156

68.5%

4.0

-4.2%

6.00

3.34

19

British American Tobacco

187

102

96.5%

0.6

6.5%

10.00

3.13

20

BMW

733

195

18.5%

3.7

-0.5%

10.00

3.13

21

Pfizer

1006

202

40.5%

1.0

-3.3%

6.00

2.97

22

Starbucks

1022

179

30.2%

12.2

-1.4%

6.00

2.87

23

General Mills

317

95

55.3%

7.2

4.6%

10.00

2.83

24

Bristol Myers Squibb

91

29

79.8%

3.7

37.8%

6.00

2.80

25

3M

765

175

50.9%

4.0

0.2%

6.00

2.78

Notes:
1. Gartner Opinion and Peer Opinion: Based on each panel's forced-rank ordering of companies and their possession of end-to-end supply chain maturity.
2. ROPA:  ((2020 operating income / 2020 net property, plant, equipment + year-end inventory) × 50%) + ((2019 operating income / 2019 net property, plant, equipment + year-end inventory) × 30%) + ((2018 operating income / 2018 net property, plant, equipment + year-end inventory) × 20%)
3. Inventory Turns: 2020 cost of goods sold / 2020 quarterly average inventory.
4. Revenue Growth: ((change in revenue 2020-2019) *50%) + ((change in revenue 2019-2018) *30%) + ((change in revenue 2018-2017) *20%).
5. ESG Component Score: Index of third-party environmental, social and governance measures of commitment, transparency and performance.
6. Composite Score: (Peer Opinion*25%) + (Gartner Research Opinion*25%) + (ROPA*20%) + (Inventory Turns*5%) + (Revenue Growth*10%) + (ESG Component Score*15%).
2020 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 (May 2021)

For 2021, the Top 25 and Masters companies embraced three key trends that highlighted their purpose, enabled transformation, and accelerated digital capabilities:

Integrated, Purpose-Driven Organizations

In 2020, many of the supply chains in Gartner’s top 25 study ranking helped keep society running during the darkest days of the pandemic. Now there is an opportunity to solve some of the world’s longer-term social and environmental challenges.

A maturity differentiator among purpose-driven organizations is that those further along in the journey are not simply supporting a varied list of “green” initiatives and people-related programs. Instead, they integrated these into a larger strategy alongside commercial partners. Some are even leveraging product marketing budgets to fund this work and integrating it into brand messages, instead of treating environmental, social, and corporate governance (ESG) investments as a purely operational cost.

Customer-Driven Business Transformation

Along with intermittent supply disruptions and larger-than-normal demand swings, the pandemic has driven an accelerated level of business model transformation across industries which required supply chains to be highly adaptive.

“Many changes were driven by an outsized uptick in products and services delivered direct to customers and patients, instead of through more traditional, centralized locations such as physical stores and medical facilities,” Mr. Griswold said.

Digital First Supply Chain

A Gartner survey of board of directors, taken late in 2020, showed that nearly 70% of companies accelerated their digital roadmaps during the pandemic. Some leading supply chains have reached a point in their transformation journeys where they consider themselves “digital first” in the use of technology to enable more seamless customer experiences and more automated and insightful decisions in supply and product management, at scale.

However, digital transformation would not be possible without the right talent. Leading companies conduct formal skills assessment and strategic workforce planning. AI, machine learning and big data analysis are the most common capabilities, and most are simultaneously recruiting and developing these skills in their organizations. Several advanced supply chain organizations run digital literacy and dexterity programs to enable employees to better understand and exploit digital business opportunities.

“Leaders must position new digital technologies as a means for employees to stop spending time on manual, non-value-added activities, so they can focus on providing value for their customers,” Mr. Griswold concluded.

More information is available in the report “The Gartner Supply Chain Top 25 for 2021: Leaders and Their Stories”. A replay of the webinar “The Gartner Supply Chain Top 25 for 2021” is available here.

About the Gartner Supply Chain Top 25

The Supply Chain Top 25 ranking comprises two main components: business performance and opinion. Business performance in the form of public financial and ESG (environmental, social, governance) data provides a view into how companies have performed in the past, while the opinion component offers an eye to future potential and reflects leadership in the supply chain community. These two components are combined into a total composite score.

Gartner analysts derive a list of companies from a combination of the Fortune Global 500 and the Forbes Global 2000. In an effort to maintain the list of companies evaluated at a manageable level, a general annual revenue threshold of $12 billion has been applied.

 

About Gartner Supply Chain Symposium/Xpo

Gartner Supply Chain Symposium/Xpo is the most important gathering of CSCOs and supply chain executives. Supply chain leaders will discover the must-have insights, strategies and frameworks to build the sustainable, societal and profitable supply chains required for a dynamic world.

Upcoming dates for the Gartner Supply Chain Symposium/Xpo include:

September 13-15: London, U.K.

October 25-27: Orlando, FL.

 

About the Gartner Supply Chain Practice

The Gartner Supply Chain Practice brings together the most relevant analysis, peer-based best practices, metrics and data across Gartner and offers supply chain leaders a platform to make the choices that will drive their business forward. Additional information is available at https://www.gartner.com/en/supply-chain. Follow news and update from the Gartner Supply Chain Practice on Twitter and LinkedIn using #GartnerSC.

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About Gartner

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