• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Top Supply Chains in Capital Goods and Conglomerates

Top Supply Chains in Capital Goods and Conglomerates

September 19, 2007
From AMR Research/Jane Barrett

AMR Research's Supply Chain Top 25 for 2007 was dominated by consumer brand names like top 5 finishers Nokia, Apple, Procter & Gamble, IBM, and Toyota. High-tech, consumer goods, and retail companies have owned the list the past three years, with diverse capital goods manufacturers and conglomerates not seeing the Top 25. Only Caterpillar gained a position in the top 50, coming in at No. 31.

Three metrics are used because of their public availability, with inventory turns providing an indication of supply chain cost, ROA as a general proxy of operational efficiency and productivity, and revenue growth as an indicator of innovation.

As mentioned above, only Caterpillar showed up in the top 50, with a total score of 2.63. Nokia, the 2007 leader, had a total composite score of 6.74, and AstraZeneca came in at No. 25 with a score of 2.88.
Analysis of those in the Top 25 shows these companies have more mature, demand-driven supply chains that take advantage of global scale and innovation. We have developed an organizational maturity model that identifies stages of development as transformation occurs. The change involves a strategic business project portfolio to move the organization through four stages of maturity to value-driven operational excellence, summarized as follows:
Stage 1--Local markets focused
Stage 2--Customer and brand control focused
Stage 3--Demand-driven, integrated, transactional supply chain
Stage 4--Value-driven network relationships and workflows

Overall, the diverse organizations we looked at are in Stages 1 and 2 and tend to have the following attributes:
1. Focus on operational excellence and technological innovation in their markets and for their brands. They have the potential to capitalize on global standardization and scale given their diversity, upstream and particularly downstream.
2. Relatively low inventory turns, which could be improved by becoming more demand driven with an outside-in focus.
3. Individual businesses manage their performances and asset utilization well. In some cases, however, when rolled up to the total company, the results don't compare with globally integrated Top 25 companies that are in Stage 3 or Stage 4 where the focus is on demand and ultimately value.
4. Companies with longer customer and/or product lifecycles tend to focus on upstream supply management versus a shorter lifecycle where downstream gets the attention.

Leaders in this group are crossing into Stage 3 on the supply side and chasing improved perfect order performance. However, in Stage 3, perfect order delivery is about low cost versus Stage 4's goal of perfect order profitability.

In their relentless efforts to drive business unit and value chain performance, leaders are investing in several global initiatives:
1. Standardized processes and metrics across the organization for scale and efficiency, which unlocks value tradeoffs and provides analytical sophistication that enables fact-based decision making.
2. Better understanding of global demand and consumer/user/buyer insights that can help facilitate the right tradeoff decisions.
3. Taking an external, outside-in view of business processes for maximum use of assets to generate higher revenue and profit, which means squeezing more margin out of assets with best practices.
4. Standardized sales and services processes, tools, and technologies for global visibility and optimization.
5. The top organizations should be recognized for their superior business unit performances in very diverse markets. These companies typically have long product lifecycles, highly engineered innovative products and services, and a loyal customer base.

Manufacturers in these sectors have traditionally focused on their supply networks. Leaders, however, are very customer focused. They are now looking to value chain transformation and sustainability through employing globally consistent processes and balancing the tradeoffs of risk and opportunity through sales and operations planning.
http://www.amrresearch.com

RELATED CONTENT

RELATED VIDEOS

Quality & Metrics
KEYWORDS Quality & Metrics
From AMR Research/Jane Barrett

S&OP Change Management: How To Get Out of the Starting Gates

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A PAINTING IN WHICH A RED HOT AIR BALLOON IS TETHERED TO A GIANT ANCHOR

    Will FTC Succeed in Banning Non-Compete Clauses in Employment Contracts?

    HR & Labor Management
  • WORKERS INTERACT WITH VARIOUS TYPES OF CARGO MOVING EQUIPMENT ON A CROWDED DOCK

    White House Urged to Intervene in West Coast Port Labor Talks

    Global Gateways
  • A MEDLEY OF GRAPHS SHOWING ZIG-ZAG RESULTS AGAINST A MAP OF THE WORLD AND AN IMAGE OF OIL DERRICKSiStock-peshkov-1316669671(1).jpg

    Bringing the Supply Chain Closer: Nearshoring Is Here

    Sourcing/Procurement/SRM
  • TWO FINGERS MANIPULATE WOODEN LETTER BLOCKS TO TURN FROM SHOWING THE WORD RECOVERY TO RESILIENCE

    A Data-Driven Approach to Supply Chain Resilience

    Technology
  • A WOMAN STANDS NEXT TO A BIKE, DAPPLED BY THE SHADOWS OF BICYCLE RACKS.

    Walmart is Changing the Way Its Employees Get to Work

    Sustainability & Corporate Social Responsibility

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Holman Logistics Honeywell Intelligrated
IFM Infor Inmar
Keelvar Kinaxis Korber
Lean Solutions Group 2H Liberty SBF Locus Robotics
Logility LogistiVIEW Lucas Systems
MCA Connect MPO Nvidia
Old Dominion OpenText ORTEC
Overhaul Parsyl PMMI
QIMA Redwood Logistics Ryder E-commerce by Whiplash
Saddle Creek Logistics Schneider Dedicated Setlog Holding AG
Ship4WD Shipwell Shyft
Sourcemap Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing