10 Best Supply Chain Companies of 2021

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Supply chain masters lead the way Who else made the list?

In the face of severe and ongoing disruption, organizations that can manage conflicting priorities to operate agile, robust, transparent and ethical supply chains are impressive.

Gartner’s Supply Chain Top 25 for 2021 celebrates companies whose supply chain strategies have demonstrated that they are purpose-driven, disruptive and early adopters of innovative technologies.

To recognize the most sustained examples of superior supply chain management services, Gartner lists Apple, Amazon, McDonald’s, P&G and Unilever as Supply Chain Masters – an award earned as a result of achieving top-five composite scores in the Gartner Supply Chain Top 25 for at least seven out of the last 10 years.

These five aside, here are the top 10 supply chain management companies of 2021.

1. Cisco Systems

For the second consecutive year, the telecommunications technology conglomerate Cisco Systems is in the top 25 of Gartner’s Supply Chain.

Thanks to its commitment to creating a dynamic, distributed supply chain, focusing on dual sourcing to build resilience, and fostering meaningful relationships with its suppliers, Cisco has continued to thrive despite the disruptions of the past 18 months.

The company has also made a concerted effort to integrate sustainability initiatives with its supply chain business. Cisco has pledged to reduce its greenhouse gas (GHG) emissions by 30%, while 80% of its component, manufacturing and logistics companies and suppliers will have a GHG emission reduction target.

2. Colgate-Palmolive

Providing household and consumer products to millions of households around the world, Colgate-Palmolive has demonstrated agility, resilience and commitment to supply chain sustainability.

In early 2021, Colgate-Palmolive was featured on Fast Company’s list of the world’s most innovative companies. This was due to its development of a first-of-its-kind recyclable plastic tube, a technology it also shared with third parties.

Colgate-Palmolive has consistently invested in new digital capabilities, including factory automation and advanced network modeling. For example, in an effort to connect manufacturing operations to its supply chain and boost supply chain reliability, the company is moving to a predictive maintenance model. Wireless sensors and artificial intelligence-powered data analytics will enable Colgate-Palmolive to monitor equipment health 24/7 and optimize its performance.

3. Johnson & Johnson

Johnson & Johnson has proven itself to be an MVP since the COVID outbreak. In March 2020, the Johnson & Johnson Family of Companies and the Johnson & Johnson Foundation pledged $50 million to support healthcare workers on the front lines with meals, personal protective equipment, training and mental health support.

A partnership with the not-for-profit company Prisma Health earned Johnson & Johnson Gartner’s Power of the Profession Award for Client or Patient Innovation of the Year. The pair developed a 3D-printable device, which made it possible to adapt a single ventilator for use by two patients.

Part of the company’s Healthy Lives Mission includes a commitment to use 100% recyclable, reusable or compostable plastics, recycled paper and pulp-based packaging by 2025.

4. Schneider Electric

Schneider Electric, a global specialist in energy management and automation, operates a diverse supply chain in more than 100 countries.

Driving sustainability throughout the supply chain, which includes adopting an approach known as “embedded sustainability”, is a top priority for Schneider Electric to ensure that the integration of environmental, health and social value with core business activities does not cost or affect quality.

Currently, more than 73% of the company’s investments are directed towards the development of new and even more sustainable solutions.

In addition, Schneider Electric’s EcoStruxure platform is helping the company build a coalition of partners committed to driving innovation in the energy management industry.

5. Nestle

For the second consecutive year, Nestle achieved a perfect ESG score in the Gartner Supply Chain Top 25. (An ESG rating measures a company’s exposure to long-term environmental, social and governance risks.)

Nestle’s efforts include developing simplified packaging and biodegradable and compostable materials and increasing the use of recycled content. Nestle also launched an interactive video platform to raise consumer awareness of the complex sustainability issues associated with the palm oil supply chain.

The company is also expanding its e-commerce business and developing new direct-to-consumer capabilities across its entire supply chain.

6. Intel

Amid a global chip shortage, Intel announced in March 2021 that it would spend $20 billion to build two new chip plants in Arizona. This signaled the company’s continued focus on manufacturing and demonstrated its ability to deliver innovative supply chain solutions under challenging conditions.

Intel’s RISE (Responsible, Inclusive, Sustainable, Empowering) strategy includes the goal of developing “the most sustainable and energy-efficient computer in the world, eliminating carbon, water and waste in its design and use.”

In its 2020-21 Corporate Responsibility Report, Intel notes that it has increased its use of renewable energy from 71% to 81%, saving 7.1 billion gallons of water in the process.

To drive sustainability throughout its supply chain, Intel requires its 9,000+ Tier 1 suppliers to adhere to the Intel Code of Conduct and the Responsible Business Alliance (RBA) Code of Conduct, and to develop their own corporate responsibility strategies, policies and processes .

7. PepsiCo

One of PepsiCo’s top priorities is investing in digital tools and advanced technologies to create a more efficient, streamlined supply chain. It focuses on data integration to better meet consumer demands and sophisticated data analytics to drive that efficiency.

Following the COVID outbreak, PepsiCo showcased its agile supply chain by quickly launching two direct-to-consumer offerings—Pantryshop.comandSnacks.com—to allow customers to customize a range of its products.

The company is also committed to driving sustainability throughout its supply chain. For example, PepsiCo recently unveiled plans to become net water positive—replenish more water than it uses—by 2030. If successful, the company would be one of the most water-efficient food or beverage manufacturers operating in high-risk watersheds .

8. Walmart

Walmart’s supply chain is often touted as one of the most efficient in the world. In the past two years alone, the retailer has invested $11 billion in e-commerce, supply chain, logistics services and technology.

The company launched Walmart+, which competes with Amazon Prime, implemented a range of new fulfillment options — such as curbside pickup — and is upgrading its warehouse management system to drive efficiency throughout its supply chain.

The company has also committed to zero emissions by 2040.

9. L’Oreal

L’Oréal made it into the top 10 of the Gartner Supply Chain Top 25 for the first time thanks to its agile, customer-centric and ethical supply chain practices.

“Digital Beauty” is a key focus of the company’s supply chain strategy. This includes a shift to technology-enhanced logistics and increased use of data to accommodate the rise of e-commerce.

L’Oréal also has a fantastic record for corporate social responsibility (CSR). Not only is it the only company to rate Triple-A for four consecutive years in the Customer Data Protection (CDP) ratings, but it was also on Ethisphere Institute’s 2021 list of the World’s Most Ethical Companies. In addition, the L’Oréal for the Future program includes the goal of reducing the greenhouse gas emissions linked to the transport of its products by 50% between 2016 and 2030.

10. Alibaba

Appearing in the Gartner Supply Chain Top 25 top 10 for the second consecutive year, Alibaba has significantly expanded its supply chain offerings to deliver manufacturing efficiencies.

Example: Alibaba.com Freight was launched by the company in 2020. This supply chain-as-a-service initiative enables small and mid-sized companies to compare, book, manage and track bulk sea and air freight in real time.

The Chinese retailer has also partnered with Unilever on The Waste Free World Initiative to accelerate the process of returning high-grade plastics to a closed-loop recycling system within China.

SOURCES: Thomas Insights, Gartner Inc.

Supply chain masters are leading the way

To recognize sustained supply chain excellence, Gartner introduced the “Masters” category in 2015. To be considered a Master, companies must have achieved top-five composite scores for at least seven of the past 10 years. All the 2020 Masters qualified for the category in 2021. Meet the Masters:

Apple Amazon McDonald’s Procter & Gamble Unilever

Supply chain masters are leading the way

These leading companies round out the Gartner Supply Chain Top 25 list:

11. AbbVie

12. Nike

13. Index

14. Dell Technologies

15. HP Inc

16. Lenovo

17. Diageo

18. The Coca-Cola Company

19. British American Tobacco

20. BMW

21. Pfizer

22. Starbucks

23. General Mills

24. Bristol Myers Squibb

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