Methodology Comparison: Gartner Top 25 and Supply Chains to Admire
Gartner Top 25
Supply Chains to Admire ™
Public Manufacturing and Retail Companies from Fortune Global 500 and Forbes Global 2000 lists.
All public companies are analyzed by industry peer groups. 512 companies by 28 peer groups. No revenue minimum. There is no limit on the number of winners peer group. Likewise, there may be no winner by industry.
Focus
12$B minimum annual revenue. (roughly 300 companies)
2020-2022
2013-2022
Analysis
50% Opinion: (Equally split between analyst and peer voting)
Improvement : Top 2/3 ranking on the Supply Chain Index.
Calculation
Performance: At or above the industry mean for: • Year-over-year revenue growth. • Operating margin. • Inventory turns. • Return on Invested Capital (ROIC).
50% Quantitative Analysis: • 10% of score is Revenue Growth: (Change in revenue 2022-2021)*50%+(Change in Revenue 2021-2020)*50% • 5% of score is Inventory Turns : 2022 cost of goods sold/2022 quarterly average inventory • 15% of the Score is a Weighted Return on Physical Assets (ROPA). Three-year weighted average. (50% 2022 ROPA, 30% 2021 ROPA and 20% 2020 ROPA) • 20% is Environmental, Social and Governmental responsibility (3 rd party indexes)- 20%
Value: At or above the mean for Price-to-Tangible Book or Market Capitalization.
Index Calculations: https://www.slideshare.net/loracecere/sci-summit-2014-math-behind-sc-index?qid=27326733- 0325-4ee7-aacd-e2827bd216de&v=&b=&from_search=11
10 th Year
19 th Year
History
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