Top 10 Manufacturing Supply Chains
Faced with social and environmental challenges, fluctuating demands, disruption, and accelerated digitalisation, supply chains around the world have been hit with some of their biggest challenges yet following the outbreak of COVID-19.
Emerging from the pandemic, Gartner identifies three key trends that are being adopted by those who are “effectively navigating the post-pandemic landscape through excellence in supply chain management”:
- Integrated and purpose-driven organisations
- Customer-driven business transformation
- The digital-first supply chain
In this Top 10, we take a look at Gartner’s Supply Chain Top 25, identifying the manufacturers who have excelled in these three areas.
Believing that “collaboration is key to raising the bar on industry standards, working conditions and issue remediation,” Nike is committed to improving standards, monitoring working conditions and providing sustainable remediation.
“Today, we are working with a wide range of partners, including our suppliers, other businesses, governments, multi-stakeholder organisations, unions, civil society organisations and others to address risks and to strengthen the resiliency and capability of our supply chain,” says Nike.
CEO: John Donahoe
Working “with the future in mind”, AbbVie is committed to supply chain, sustainability, agility, and visibility.
Like many other organisations today, AbbVie has been faced with the challenges presented by COVID-19. To combat these challenges, AbbVie has been working to incorporate real-time transportation visibility into their strategy to improve agility and improve its customer experience.
Purchasing goods and services from over 56,000 suppliers, AbbVie - via its Sustainable Supply Chain Programme - is also committed to working with its supplier network to ensure quality, compliance and social responsibility.
CEO: Richard A. Gonzalez
Helping businesses to transform the way they market, sell and operate, Alibaba provides the technological infrastructure and marketing reach to help merchants, brands, and other businesses operate more efficiently.
When it comes to Alibaba’s own supply chain, the company is committed to:
- Demonstrating leadership in supply chain sustainability - in particular integrating a closed-loop recycling system into its operations
- Innovating customer to manufacturer product design to improve efficiencies
- Developing platforms that enable real-time management of supply chain operations
“We do not pursue size or power; we aspire to be a good company that will last for 102 years. We aim to build the future infrastructure of commerce,” says Alibaba.
CEO: Daniel Zhang
Recognised for its agility, digital transformation and performance in sustainability, L’Oréal has been operating for more than 100 years in the cosmetics industry.
Driven to accelerate its supply chain transformation, L’Oréal focuses its efforts on three key areas: agile beauty, services beauty, and digital beauty.
“We are very proud of this renewed recognition that encourages us to go further and to continue accelerating our Supply Chain’s transformation,” says Francisco Garcia Fornaro, Chief Supply Chain Officer at L’Oréal, who emphasised that the achievements and transformation strategy “are all made possible thanks to the strong commitment and incredible drive of our teams.”
CEO: Jean-Paul Agon
As one of the biggest Food and Beverage manufacturers in the world, PepsiCo is committed to efficiency, high-quality raw materials and outstanding suppliers in its supply chain.
Being increasingly focused on its investment into digital tools and advanced technologies, PepsiCo strives to have a more collaborative and integrated supply chain to distribute products to the market depending on product characteristics, local trade practices and customer needs.
CEO: Ramon Laguarta
Responsible, resilient, and diverse - Intel’s global supply chain strategy is driven by these three words in order to create technology solutions for its customers that “unleash the potential of data.”
Four Core Areas Intel Is Committed to Tackle in the Supply Chain Include:
- Combatting slavery and human trafficking
- Responsible minerals sourcing
- Reducing environmental impact
- Increasing diversity in the supply chain
“Through leadership and collaboration with our suppliers, stakeholders, consortia, and fellow travellers, we are accelerating responsible standards and accountability across industries,” says Intel.
CEO: Patrick P. Gelsinger
Defining itself as “an aligned, agile, and adaptable organisation that is committed to delivering results, not only within [the] supply chain but also in support of overall business priorities," Nestlé is committed to investing in its global supply chain.
Key Focus Areas for Nestlé Include:
- Demonstrating its strength in ESG and leadership
- Investing in reducing package waste
- Adapting to new business models and improving its end-to-end supply chain
“Supply chain professionals at Nestlé play a critical role in ensuring quality products reach our customers and consumers. To achieve this, we collaborate with the commercial teams to develop the demand forecast and with our suppliers around the world to ensure responsibly sourced materials,” says Nestlé.
CEO: Ulf Mark Schneider
3. Schneider Electric
Against the backdrop of what has been a significantly tough year for most organisations, Schneider Electric has strived to continue on its mission to deliver its Sustainable Connected 4.0 Strategy.
Combining people, processes and technology, the company has developed a unique supply chain strategy - built on three key trends tailored, sustainable and connected 4.0 - that is both good for the company and the planet.
“It’s truly an honour to be held in such high regard by our supply chain peers globally. Leveraging our supply chain strategy, STRIVE, we managed to demonstrate resilience during a challenging year,” says Mourad Tamoud, Chief Supply Chain Officer, Schneider Electric.
CEO: Jean-Pascal Tricoire
Website: Schneider Electric
2. Johnson & Johnson
Starting out as a “simple partnership among three forward-thinking siblings,” Johnson & Johnson (J&J) sits today as one of the largest healthcare companies in the world.
Leading the life science industry, the company’s leadership, operational strength and innovative expertise has helped it to not only navigate the challenges of COVID-19 but rapidly scale its operations to manufacture an effective vaccine against the virus.
Ways in Which J&J Helped Navigate the Pandemic:
- Leveraging its manufacturing network, J&J’s medical device company - Ethicon - in partnership with Prisma Health, used 3D printing to make and distribute VESper™ Ventilator Expansion Splitter at no cost going from concert to launch in 10 days.
- Repurposing its supply chain, J&J converted its manufacturing lines around the world to produce hand sanitiser, donating its products to health and community service workers.
- When demand for Tylenol doubled in certain markets, J&J ramped up its production of critical medications, running sites 24/7 to produce and ship at all times.
“In the wake of COVID-19, it's organisations with the strongest supply chains that have been able to ensure people around the world continue to receive access to the products they need to stay safe and healthy” - Johnson & Johnson.
CEO: Alex Gorsky
Website: Johnson & Johnson
Number one on our list is Colgate-Palmolive.
Focused on transformation, Colgate-Palmolive’s supply chain strives to be ahead of the curve, harnessing customer segmentation strategies and new business models, as well as investing in advanced digital technologies. Such enhanced capabilities have helped the company to continue to grow, becoming more resilient, agile and efficient.
Not only does Colgate-Palmolive look to transform internally, but the company is also committed to reducing its impact on the environment and openly shares its innovations with third parties, such as its recyclable plastic tube - a world first.
“During times of disruption, these companies continue to lead by example and provide advanced lessons for the supply chain community” - Mike Griswold, vice president team manager with the Gartner Supply Chain practice
CEO: Noel R. Wallace