The Gartner Supply Chain Top 25 for 2022
Gartner has announced the results of its annual Global Supply Chain Top 25, with technology solutions company Cisco Systems maintaining the top ranking for the third year in a row while consumer goods companies Colgate-Palmolive, Johnson & Johnson, PepsiCo, and Nestlé all made it into the Top 10. Sustainability initiatives and adapting to global supply chain challenges remain a priority for the companies ranked by Gartner.
“ESG is a big focus, with circular concepts incorporated in the design, operations and consumption aspect of the products and the supply chain.”
According to Gartner, sustainability was on the agenda for a number of supply chains, with companies especially beginning to target Scope 3 emissions reductions. For technology companies like Cisco, as well as Lenovo (ranked 9th) and HP Inc. (ranked 15th), the focus has apparently been on redesigning broader business models away from periodic sales of discrete pieces of equipment, with a shift to service-based models that include the collection, recycling, and disposal of products at end-of-life.
PepsiCo(ranked 20th) has pledged to cut Scope 3 emissions by 40% by 2030 compared to its 2015 baseline, alongside a 75% reduction across its direct operations.
Walmart(ranked 14th) recently launched the Circular Connector, an online tool aimed at bridging the gap between companies looking for more sustainable packaging solutions and companies that supply them.
Evaluation criteria
Qualitative 50％ (Gartner Opinion and Peer Opinion)
Quantitative 50％
ROPA (Return on Physical Assets) 15％ (decreaced by 5% from 2021
Inventory turns 5％
Revenue growth 10％
ESG Component scores 20％ (increased by 5% from 2021)
#1. Cisco Systems
Ranked as #1 for the third year in a row, A continued focus on adapting in various ways to the changing environment both internally and externally helped drive the high-tech innovator to the top spot for the third consecutive year.
#2. Schneider Electric
The energy management and automation specialist won the 2022 Gartner Power of the Profession™ Award for Process/Technology Innovation for its work on the “self-healing supply chain.”
#3. Colgate-Palmolive
The consumer products leader reimagined its supply chain strategy with a focus on digital and sustainability while delivering agility, efficiency and resilience.
The Gartner Supply Chain Top 25 for 2014 - 2022
Gartner Supply Chain Top 25 Performance Evaluation Criteria
The Gartner Supply Chain Top 25 for 2021
“Sisco Systems”
"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,” “Cisco’s agility helped them prioritize video conferencing and critical infrastructure capabilities for
hospitals and vaccine research.”
(Source: Gartner May 2021)
Evaluation criteria
Qualitative 50％ (Gartner Opinion and Peer Opinion)
Quantitative 50％
ROPA (Return on Physical Assets) 20％
Inventory turns
5％
Revenue growth 10％
ESG Component scores 15％
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 further details,
The Gartner Supply Chain Top 25 for 2020
“Sisco Systems”
"Cisco’s revenue growth, strength in environment, social and corporate governance (ESG) and recognition of leadership in community
opinion polls drove the move up from the fifth position in 2019 to the top spot today,” “Its ESG focus includes the circular economy, with the goal of having 100% of new Cisco products incorporate circular design
principles by the financial year 2025.”
(Source: Gartner May 2020)
Evaluation criteria
Qualitative 50％ (Gartner Opinion and Peer Opinion)
Quantitative 50％
ROPA (Return on Physical Assets) 20％
Inventory turns 5％
Revenue growth 10％
ESG Component scores 15％
1. Gartner Opinion and Peer Opinion: Based on each panel's
forced-rank ordering against the definition of "DDVN Orchestrator".
2. ROPA:
((2019 operating income) / (2019 Net property, plant equipment + year end inventory)) *50%) + ((2018 operating income) / (2018 Net property, plant equipment + year end inventory)) *30%) + ((2017
operating income) / (2017 Net property, plant equipment + year end inventory)) *20%).
3. Inventory Turns: 2019 cost of goods sold / 2019 quarterly average inventory.
4. Revenue Growth: ((change in revenue 2019-2018) *50%) + ((change in revenue 2018-2017) *30%) + ((change in revenue 2017-2016) *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%).
2019 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 2020)
The Gardner Supply Chain Top 25 for 2019
"Colgate-Palmolive”
"Colgate-Palmolive’s strong financial performance, combined with its focus on an aligned organization and impressive work in corporate
social responsibility, helped drive the move up from the fourth position in 2018 to the top spot in 2019,” “The company is focused on building a business-first mindset enabled by new
technologies, enhanced decision-making and leadership capabilities."
(Source: Gartner May 2019)
Evaluation criteria
Qualitative 50％ (Gartner Opinion and Peer Opinion)
Quantitative 50％
ROA 20％
Inventory turns 10％
Revenue growth 10％
CSR 10％
ROA：Return on assets
＝(Net income / total assets)
Total for the past three years: 50% in FY2018
+ 30% in FY2017 + 20% in FY2016
Inventory turns: Cost of goods sold/inventory
2018 cost of goods sold/2018 quarterly
average inventory.
Revenue growth: Change in revenue from prior year
Total for the past three years: 50% in FY2018
+ 30% in FY2017 + 20% in FY2016
CSR: Index of
third-party CSR measures
Source: Gartner (May 2019)
Evaluation criteria for 2014-2021
The Gartner Supply Chain Top 25 ranking trend for 2014-2021
