10
2022 // SUPPLY CHAINS TO ADMIRE
Over the eight years of analysis, fewer process manufacturers and retailers qualify for the Supply Chains to Admire recognition. We observe that discrete manufacturers are smaller and more agile, less likely to struggle with product complexity, and more aligned. In contrast, process industries tied to conventional marketing practices introduce complexity through product proliferation. These marketing programs, in addition, tend to shift and distort demand versus shaping demand by improving market potential (baseline lift). Shifting demand decimates margin. The more significant the alignment gap between operational and commercial teams, the lower the company’s position in the sector. Marketing-driven organizations handicap process companies, which are no substitute for market-driven planning capabilities. Mergers and Acquisitions (M&A) activity in the decade was more significant in process-based companies. No industry sector successfully achieved economy of scale in delivering supply chain performance. Within process-based companies, manufacturing processes became more global, increasing logistics complexity and burgeoning in-transit inventories. The average company entered the pandemic of 2020 with twenty more days of Inventory than at the beginning of the great recession in 2007. Today, companies face inventory sell-offs while facing inflationary pressures. The giant e-commerce providers of Amazon and Alibaba are conspicuously absent from the list. While we recognize them as supply chain leaders, the Supply Chains to Admire methodology requires a peer group comparison. There are too few companies to drive a good peer group for comparison, thus eliminating the inclusion in the analysis.
Table 1. Winners Over Time
Winners Over Time
company
frequency
this year
Apple
8
Y
L'Oréal
6
N
Broadcom
6
Y
TSMC
6
Y
Dollar General
5
N
Nike
5
Y
TJX
5
N
Paccar
5
Y
Dollar Tree
4
N
Ross Stores
4
Y
Eastman
4
N
Sleep Number
4
Y
Abbvie
3
Y
Asso Abloy
3
Y
Celanese
3
Y
Clorox
3
Y
Intuitive Surgical
3
Y
Koninklijke Ahold Delhaize NV
3
Y
Monster Beverages
3
Y
ResMed
3
Y
Toro
3
Y
Table 2. Consecutive Year Winners for the Supply Chains to Admire Year-over-Year
Supply Chains to Admire Summary Year
Sector
2014
2015
2016
2017
2018
2019
2020
2021
2022
Retail
2
6
6
4
9
5
3
3
2
Process
4
5
3
4
11
6
5
4
5
Discrete
12
23
16
24
31
25
14
13
15
Sum
18
34
25
32
51
36
22
20
22
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