FOLLOW

FOLLOW

SHARE

The Top 25 Supply Chains

Corporations that have adopted demand-driven supply chains are outperforming their competitors by a wide margin, according to AMR Research.

11Jan

Accounting rules treat inventory as assets. But as revealed by the top 25 supply chains compiled by Boston-based consultancy AMR Research, most demand-driven companies maximize sales while minimizing safety stock. The secret of their success? Replacing inventory with information from customers and suppliers.



































































































































































































































































VendorAMR
Opinion
(40%)*
ROA
(20%)**
Sales/Inv.
(20%)***
Trailing
12-mo. Growth
Composite
Score****
1. Dell23813.7%126.717.1%20.75
2. Nokia14515.0%25.217.5%13.31
3. Procter & Gamble18810.7%11.97.8%11.70
4. IBM13713.5%29.39.8%11.31
5. Wal-Mart Stores1758.5%9.810.9%11.27
6. Toyota Motor1515.7%14.416.6%11.08
7. Johnson & Johnson11015.0%11.715.3%10.93
8. Johnson Controls1515.2%27.412.6%10.70
9. Tesco425.9%25.727.7%9.43
10. PepsiCo10114.1%19.17.4%9.10
11. Nissan Motor5110.8%11.822.1%9.09
12. Woolworths1411.1%14.327.3%8.80
13. Hewlett-Packard333.4%12.129.1%8.30
14. 3M6613.7%10.011.6%8.09
15. GlaxoSmithKline3518.8%10.211.9%7.95
16. Posco239.6%8.623.3%7.85
17. Coca-Cola5815.9%16.87.6%7.69
18. Best Buy528.1%9.417.2%7.53
19. Intel5212.0%12.012.6%7.47
20. Anheuser-Busch7014.1%24.14.3%7.45
21. The Home Depot6212.5%7.110.1%7.29
22. Lowe's379.9%6.716.4%7.00
23. L'oreal249.9%12.817.6%6.98
24. Canon138.7%7.222.0%6.94
25. Marks & Spencer187.5%20.919.2%6.89

* AMR opinion: based on panel of experts' forced-rank order against definition of "demand-driven supply network orchestrator"

** ROA: 2003 net profit/2003 total assets

*** Sales/Inventory: 2003 sales/2003 year-end inventory

**** Composite score = [(AMR opinion / 10) x 40%] + [(ROA x100) x 20%)] + [((sales / inventory) / 5) x 20%] + [(trailing-12-month growth x 100) x 20%]

Comments

comments powered byDisqus
Cfoport

Read next:

Finance At BeyondCore

i