Procter and Gamble Places Fifth in Supply Chain Evaluation

P & G Leads Industry Peers

 

The Gartner Supply Chain Top 25 for 2012, which identifies global supply chain leaders and highlights their best practices, has revealed Apple took the No. 1 position, while Amazon followed in the No. 2 slot.

Rounding out the list at No. 5 was perennial winner, P&G (Procter & Gamble), viewed as a supply chain thought leader and a representative of brand management. 

The study showed P&G optimized decisions across the supply network using its world-class, open innovation platform, combined with an impressive new product organizational capability integrated within the supply chain. P&G continues to demonstrate a deep understanding of their consumers' "moments of truth" to deliver new products.

P&Gs peers also made the list in the following ranking and Composite Score ((Peer Opinion * 25%) + (Gartner Research Opinion * 25%) + (ROA * 25%) + (Inventory Turns * 15%) + (Revenue Growth * 10%)):

• No. 5: P&G - Composite Score - 5.05
• No. 10: Unilever - Composite Score - 4.21
• No. 11: Colgate/Palmolive - Composite Score - 4.17
• No. 18: Nestle - Composite Score - 3.06
• No. 22: Johnson & Johnson - Composite Score - 2.55

According to the study, many companies have exhausted easily gained efficiencies within their existing supply networks and products. Further improvement will require structural changes to streamline the flow of supply, and eliminate less profitable products. 

Supply chain leaders are continuing to adopt optimization strategies to eliminate rarely used product features, service offerings, suppliers and distribution network capacity that does not add value to customers. Supply chain segmentation has become a critical enabler of supply chain simplification, delivering only the level of service required by each customer type and nothing more. 

Segmenting the end-to-end supply chains to meet customer-driven needs, such as cost efficiency, personalization and speed to market, has been around for several years, but the study reveals the difference this year is that leading companies are adopting and executing on their segmentation strategies.

Why is this important to you?  Simplification of product and service offerings as well as delivering/management of the client experience has never been more important than it is right now.  

Read the Gartner Study