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Scmr Sep Oct 2012 Raising The Bar B321
Scmr Sep Oct 2012 Raising The Bar B321
Scmr Sep Oct 2012 Raising The Bar B321
Scmr Sep Oct 2012 Raising The Bar B321
Scmr Sep Oct 2012 Raising The Bar B321
Scmr Sep Oct 2012 Raising The Bar B321
Scmr Sep Oct 2012 Raising The Bar B321
Scmr Sep Oct 2012 Raising The Bar B321
Scmr Sep Oct 2012 Raising The Bar B321
Scmr Sep Oct 2012 Raising The Bar B321
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Scmr Sep Oct 2012 Raising The Bar B321

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  • 1. SEPTEMBER /OCTOBER 2012www.scmr.com ® FEATURES 10 The Supply Chain Top 25: The Raising the Bar By Debra Hofman and Stan Aronow Collaborative 20 Alliance Managment: TOUCH Engaging Suppliers the Right Way By Bob Engel 28 How the Leaders Are Tackling Global Trade Management By Bob Heaney 36 Bridging the Supply Chain Divide By Ashutosh Dekhne, Xin Huang, and Apratim Sarkar 43 Collaborating for a More Sustainable Supply Chain By Timothy M. Laseter and Nancy Gillis COMMENTARY Insights 4 Global Links 6 Talent Strategies 8 SUPPLY MANAGEMENT 50 BENCHMARKS 62 S53 SPECIAL REPORT European Logistics Update Quo vadis, Europe? European logistics industry looks beyond the crisis
  • 2. LEADers collaboration advantage synergy communitythe supply chain top 25Raising the Bar By Debra Hofman and Stan Aronow Debra Hofman is Managing Vice President and Stan Aronow is a Research Director at Gartner Inc. They can be reached at Debra.Hofman@gartner.com and Stan.Aronow@gartner.com. The 2012 ranking of supply chain leaders from Gartner includes a broad mix of global companies—a few new to the list, but most having recorded multiple appearances. These leaders share certain characteristics that drive day-to-day performance while solidifying the foundation for future growth. Their standout performance is raising the supply chain leadership bar for companies everywhere.10 Supply Chain Management Review • September/October 2012 www.scmr.com
  • 3. G artner’s Supply Chain Top 25, pub- embed innovation in operations rather than keep it isolated lished since 2004, is an annual in the laboratory. The demand-driven model is inherently ranking of leaders in the global sup- circular and self-renewing, unlike the push supply chains of ply chain. At its core, the Supply our factory-centric industrial past. Chain Top 25 is about demand-driv- en leadership. Every year, we iden- Inside the Numbers tify the companies that push the In the 2012 ranking, the top five contenders includeenvelope of supply chain innovation. Our goal is to raise three perennials and two relative newcomers. (See tableawareness of the supply chain discipline, as well as how on page 14 for the complete rankings.) First is Apple,it impacts the business, and to catalyze the debate and maintaining its No. 1 position despite some bumps thisthe cross-fertilization of ideas about what supply chain year, using first-to-market advantage, scale and brand toexcellence really means. wield supply chain as a competitive weapon. Already a stellar performer on the financial metrics we use for theWhat Is the Definition of Excellence? ranking and well-respected in the voting portion of theOur methodology, detailed below, is based on a compos- methodology, Apple astoundingly raised the bar even fur-ite score for each company that is made up of a set of ther, getting to a near-perfect score.financials combined with an opinion component, provid- Both Dell and Procter Gamble have been in the toping a balance between objective and subjective compo- 5 every year of the ranking. Dell, having paved the way withnents. In completing their ballots, voters are asked to its configure-to-order model, has transformed itself andidentify those companies they believe are furthest along developed a sophisticated go-to-market strategy that tailorsthe journey toward the demand-driven ideal, as defined supply chains by segment. Procter Gamble, an iconicin Gartner research and on the voting website. supply chain thought leader, has an unparalleled ability to What does it mean to be demand-driven? Exhibit 1, orchestrate demand and connect the supply chain to theon page 12 captures the organizational ideal of demand- shelf and its customers’ moments of truth. PG continuesdriven principles as applied to the global supply chain. to push the envelope of innovation and performance.This model has three overlapping areas of responsibility: Amazon and McDonald’s were both new to the rank- • Supply management—Planning, sourcing, man- ing in 2010 and have moved steadily up since then. With aufacturing, logistics. three-year weighted average revenue growth approaching • Demand management—Marketing, sales, and 40 percent, Amazon delivers consistently reliable prod-service. uct supply to its shoppers—no small feat given the range • Product management—RD, engineering, and of products it offers, the complexity of its network, andproduct development. its continued expansion into new channels and services. Excellence is a matter of visibility, communication, and McDonald’s, back to double digit growth this year, gets areliable processes that link all three of these functional lot of respect from peers for its ability to deliver growth in areas together. When same-store profitability while managing a more complex these processes work product portfolio driven by its McCafe line. together, the business Movers and shakers in the middle of the ranking can respond quickly and include Unilever (10), Intel (7), and Nike (14), three efficiently to opportuni- companies that have been steadily rising on the list and ties arising from market leading the way for others in their global supply chain or customer demand. transformations with impressive results. Coca-Cola, Defining characteristics known for its “last mile” distribution prowess, returns of supply chains built at No. 6 with strong peer recognition and ROA—even to this design include while it navigates the integration of its bottlers in North the ability to manage America. Cisco returns at No. 8, setting the pace with demand rather than a robust risk management program and collaboration just respond to it, a net- up and downstream in its value chain. Ranked ninth, worked rather than lin- Walmart remains a mainstay. And despite some challeng- ear approach to global es in the past year in Mexico, the company continues to supply, and the ability to get a lot of respect from peer voters for its contributionswww.scmr.com Supply Chain Management Review • September/October 2012 11
  • 4. The Top 25 EXHIBIT 1 Johnson Johnson (22), the only life sciences com- pany on the list, returns with a compelling vision for Demand-Driven Principles an ambitious supply chain transformation program. Hewlett-Packard (24), another perennial, runs one of the most complex supply chains in high tech, and is reaping the cost benefits from being the first PC OEM to move Demand Supply from coastal to Western China. Research in Motion (RIM), the maker of BlackBerry mobile devices, fell to No. 19 this year, after a difficult 2011. Given that our methodology relies on financial metrics for 50 percent of each company’s score, this fall is not a surprise. Yet RIM Product also took a hit in the voting portion of the score, despite its impressive Value Chain Express strategy. New to the ranking last year and coming back strong- Source: Gartner ly this year are Starbucks (16), with a return to growth and a focus on supply chain talent; Nestle (18), focus-to supply chain best practices over the years. ing on supplier development and raw material sourcing Colgate rises to No. 11 this year on consistently strategies; and 3M (21), best known for product innova-industry-leading, double-digit return on assets and a tion and returning to double-digit growth and ROA.strong governance model. Long a recognized leader in The companies populating our Supply Chain Top 25direct store delivery, PepsiCo (12) is collaborating with ranking this year are an impressive group and all haveretail partners to reduce out-of-stocks at the shelf and some best practice aspect of their supply chain opera-increase the visibility and accuracy of its demand sig- tions that is applicable to the rest of the community ofnal. Samsung (13), well known for its advanced SOP practice. In addition to each supply chain’s unique valueprocess, continues with strong growth and profitability proposition, there are commonalities that we see acrossin a tough market. Inditex, the European-based retailer them in terms of underlying characteristics and trendsbest known for its Zara brand and the tight integration on where they are focusing their transformation efforts.between product design and supply chain, returns forthe third time to the ranking at No. 15. Characteristics of Leaders Rounding out the list in the 16-25 section we see a At Gartner, we’ve been researching and writing about thecombination of newcomers, the newly-returning, and importance of being demand-driven since 2003. Since thatold-timers who continue to lead the way in supply chain. time, we’ve published hundreds of pieces on the transfor-We’re excited to welcome two heavy industrials among mation to a demand-driven value network. We continue tothe newcomers: Caterpillar (20), an early leader in the research these concepts and advise companies as they rec-concept of segmentation with its well-known “lane strat- ognize the value of becoming a demand-driven organization.egy,” and Cummins (23) a major player in the engine and While every supply chain organization developspower generation markets recognized for its best-in-class unique strategies and focuses on differentiated initia-parts and service network. Leading industrials are tradi- tives, we’ve found in our research that there are certaintionally strong in upstream supply management, includ- key characteristics that define the leaders. We have talk-ing the agility required to profitably balance their long ed about some of these in past articles, and they remainand complex supply chains against volatile demand. We important foundational elements to being demand-driv-look forward to seeing them share best practices with en. But they are not easy to attain, and what differenti-the supply chain community through the Top 25. ates the leaders in the Top 25 is that they are further Two remaining newcomers come from the consumer along the journey than others. Demand-driven leaders goand retail sectors. HM, the successful Swedish retail beyond best practices to build a foundation for growthapparel group, joins the list for the first time this year at and continual learning that constitutes an engine forNo. 17, with a consistently high-flying ROA on top of a superior competition.proprietary distribution network of centrally controlled These are among the key characteristics of the lead-stores. Kimberly Clark, joining at No. 25, has brought ers we’ve observed:an innovative approach to logistics partnerships to North Outside-in Focus. The concept of developing andAmerica and is now focusing on continued improvements maintaining an outside-in focus is almost synonymousin on-shelf availability and predictive demand planning. with the phrase “demand driven.” The galvanizing prin-12 Supply Chain Management Review • September/October 2012 www.scmr.com
  • 5. What’s ina name?Even if you don’t know how to say the name (pronounced Sigh’-ah),you recognize the logo. And there’s more behind it than youknow: 87 years and billions of miles of LTL experience; the mostcomprehensive guarantee in the industry; an unparalleledproactive customer service program; and 8000 professionalsready to go the distance for you. No matter how you say it,the name means performance without exception—accountability without excuse.Unusual name. Extraordinary carrier. 1.800.765.7242 • www.saia.com
  • 6. The Top 25 The Gartner Supply Chain Top 25 for 2012 Three-Year Gartner Weighted Peer Opinion1 Opinion1 Three-Year Revenue (173 voters) (37 voters) Weighted ROA2 Inventory Turns3 Growth4 Composite Rank Company (25%) (25%) (25%) (15%) (10%) Score5 1 Apple 3241 651 20.2% 74.1 51.5% 9.69 2 Amazon 2713 435 4.4% 10.0 37.7% 5.40 3 McDonald’s 1121 283 16.0% 142.4 7.2% 5.37 4 Dell 2131 546 6.8% 35.6 2.7% 5.30 5 PG 1940 622 9.2% 5.5 2.5% 5.05 6 The Coca-Cola Company 1818 372 13.0% 5.8 19.7% 4.85 7 Intel 1006 406 16.2% 5.0 17.8% 4.63 8 Cisco Systems 1243 582 8.4% 11.0 5.5% 4.46 9 Wal-Mart Stores 1874 410 8.8% 8.3 4.2% 4.24 10 Unilever 1043 534 10.2% 6.0 5.5% 4.21 11 Colgate-Palmolive 697 342 19.6% 5.3 4.2% 4.17 12 PepsiCo 917 427 10.2% 7.7 17.6% 4.05 13 Samsung 1014 291 9.4% 17.1 15.9% 3.67 14 Nike 1073 278 13.3% 4.6 5.2% 3.55 15 Inditex 397 225 17.3% 4.0 10.3% 3.37 16 Starbucks 940 191 14.3% 6.2 6.3% 3.28 17 HM 385 24 28.6% 3.6 5.7% 3.09 18 Nestle 651 196 15.9% 4.9 -9.5% 3.06 19 Research In Motion (RIM) 254 104 17.0% 11.3 13.3% 3.00 20 Caterpillar 876 226 4.6% 3.4 22.7% 2.67 21 3M 856 70 13.2% 4.4 8.4% 2.65 22 Johnson Johnson 798 176 10.7% 3.2 2.1% 2.55 23 Cummins 142 52 11.9% 6.0 20.0% 2.22 24 HP 598 192 6.2% 13.7 2.8% 2.22 25 Kimberly-Clark 463 182 8.9% 6.1 3.5% 2.21 1. Gartner Opinion and Peer Opinion: Based on each panel’s forced-rank ordering against the definition of “DDVN orchestrator” 2. ROA: ((2011 net income / 2011 total assets) * 50%) + ((2010 net income / 2010 total assets) * 30%) + ((2009 net income / 2009 total assets) * 20%) 3. Inventory Turns: 2011 cost of goods sold / 2011 quarterly average inventory 4. Revenue Growth: ((change in revenue 2011-2010) * 50%) + ((change in revenue 2010-2009) * 30%) + ((change in revenue 2009-2008) * 20%) 5. Composite Score: (Peer Opinion * 25%) + (Gartner Research Opinion * 25%) + (ROA * 25%) + (Inventory Turns * 15%) + (Revenue Growth * 10%) 2011 data used where available. Where unavailable, latest available full-year data used. All raw data normalized to a 10-point scale prior to composite calculation. Source: Gartner (May 2012)ciple here is to design the supply chain starting with the Embedded Innovation in Supply Chain. In ourcustomer experience, and work back upstream through Demand Driven Value Network model, first published inthe supply chain. While the concept is relatively simple, 2004, the inclusion of a “product” circle to accompanyits implementation is anything but. It requires a fun- supply and demand carried an explicit message aboutdamental re-orientation not only in mindset, but in the the importance of connecting traditional notions of sup-way groups are measured and in the way networks and ply chain with the new product development and launchbusiness processes are designed. An outside-in focus is process. The point is to ensure that new products arenot synonymous with a customer focus: companies can brought to market that satisfy the total customer experi-be—and often are—focused on the customer from the ence profitably and effectively. Leaders understand theinside-out, as witnessed in service metrics such as on- balance between operational excellence and innovationtime shipments or fill rates. excellence (see Exhibit 2). Supply chain considerations14 Supply Chain Management Review • September/October 2012 www.scmr.com
  • 7. The Top 25must be taken into account early on in the new product individuals in these companies get together to discussdevelopment and launch process. And the fact that new and interpret a set of numbers, the conversation isn’tproducts require different supply chain strategies than about whose fault something is; it’s about where thingsexisting products must be taken into account in the sup- broke down in the system, how to fix them, and thenply chain design process. how to take it to the next level. They are ruthless in con- Extended Supply Chains as Networks. Leaders stantly examining their own processes to push the enve-take the notion of the organization as value chain one lope of performance.step further, designing and managing their supply chainsas the extended networks of trading partners—custom- Three Trends Evidenters’ customers, suppliers’ suppliers, logistics providers, Each year, our analysts talk to and research the supplycontract manufacturers, third-party warehouses, etc. chains of hundreds of companies. Through these discus-—that they really are. What they’re doing is orchestrat- sions, we note the trends: What are the leaders focusing on,ing a set of activities across the network, aligning goals where are they investing time and effort, and what can bebased on each player’s value proposition that will result applied broadly? Overall, we’ve seen companies continuingin the desired outcome from that network—the profit- to invest in resources and assets for growth, a trend thatable delivery of final product to a customer. started last year and is continuing. The global economic Excellence Addicts. All companies measure. What recovery has been uneven and halting in some cases, but,most still struggle with is how to focus on the metrics that companies’ outlooks are increasingly expansionary in termsmatter—and even more importantly, how to interpret and of the markets they serve and the products they offer.then act on those metrics to achieve a desired outcome, There are three trends to note:namely to improve operational results. From our years of 1. Supply Chain Risk Management andresearch in this area, we find that most organizations are, Resilience. Despite investing for growth, companiesin fact, awash in supply chain metrics. They find them- also know that the potential for disruption at any-selves so caught up in the tactical aspects of measuring— time remains real. Many are looking to improve thedefining, collecting, sorting, translating, rationalizing dif- resiliency of their supply chains to mitigate this risk.ferences—that it becomes an end in itself, and suddenly In turbulent times, and in the face of growing com-they realize they’ve lost sight of the bigger picture. plexity and risk, leading companies need sustainable, The best companies—the ones we call “excellence resilient supply chains that support profitability andaddicts”—have a very different approach to metrics. drive industry leadership. This requires managers toFirst, they know what to measure. But they also under- re-evaluate the layout of their supply network designsstand that the whole is greater than the sum of the parts, to make them more resilient to future catastrophes.that it is, in fact, a system, and that the purpose of the It may also include designing products that allowmetrics is to make the entire system work better. When more flexibility in supply and manufacturing, increas- ing long-term alternative sources of raw materials and EXHIBIT 2 logistics capabilities, and expanding outsourced man- Operational Excellence and Innovation Excellence ufacturing capacity. Leading companies such as Intel, PG and Unilever improved multitier supply chain Leader Higher Cash Flow, Profits, P/E visibility and advanced network management capa- bilities to be agile in the face of disruptions. Overall, Demand Supply leaders have remained focused throughout the past year on building resiliency into their global supply Operational Product chains. We see this continuing to be a highly valued Excellence (Perfect Order, Winners supply chain characteristic. Total Supply 2. Simplification. Many companies tell us that Chain Cost) they have exhausted easily gained efficiencies within their existing supply networks and product portfolios. D Further improvement will require structural changes Losers S P to streamline the flow of supply, and eliminate less Laggard profitable product and portfolio complexity. Supply Laggard Innovation Excellence Leader chain leaders are adopting complexity optimization (Time to Value, Return on RD) strategies to eliminate infrequently used product fea- Source: Gartner tures, service offerings, suppliers and distribution16 Supply Chain Management Review • September/October 2012 www.scmr.com
  • 8. network capacity that does not add sufficient value to EXHIBIT 3customers. Supply chain segmentation has emergedas a critical enabler of supply chain simplification, Supply Chain Top 25 Methodologyand while this is a concept that has been around fora few years, leaders are aggressively adopting it to ROA 25% Peer Vote 25%reduce complexity. 3. A Shift Toward Multi-Local Operations.Manufacturers and retailers have long sought ways to 50%balance the trade-off in their supply network designs 50% Opinionbetween global economies of scale and the demand for Inventory Financials lslocal responsiveness. Leading companies are reassessing Turns 15%their sourcing and manufacturing networks, and rebalanc- Analyst Vote 25%ing their supply network strategies in favor of multi-local Revenue Growth 10%design, supply and support. More specifically, they areshifting from a centralized model, where these functions Source: Gartnersupport global markets, to a regionalized approach, wherecapabilities are placed locally, but architected globally. leadership, but what the community as a whole respects. The Supply Chain Top 25 ranking comprises two mainSupply Chain Top 25 Methodology components: financial and opinion (see Exhibit 3). PublicOne of the reasons this list has worked over the years financial data provides a view into how companies haveis its transparent methodology. From the beginning we performed in the past. The opinion component offers anhave sought direct feedback from supply chain profes- eye to future potential and reflects future expected leader-sionals and incorporated suggested changes into the ship, which is a crucial characteristic. These two compo-methodology where possible. As a result, the list reflects nents are combined into a total composite score.not only what Gartner analysts think about supply chain We derive a master list of companies from a combi- Drive Operational Excellence Your company’s supply chain function has direct implications for efficiency, cost, customer service and competitive advantage. Improve your ability to drive operational effectiveness with Olin Business School’s Supply Chain Certificate for Managers. This program takes place over the course of three 2-day modules: Module One: Module Two: Module Three: Managing the Managing Supply Supply Chain Supply Chain and Demand Analytics as a System November 6-7 December 4-5 October 9-10 Apply now to improve your organization’s competitive advantage. www.olin.wustl.edu/Certificates ExecEd@wustl.edu | 314-935-9494www.scmr.com Supply Chain Management Review • September/October 2012 17
  • 9. The Top 25nation of the Fortune Global 500 and the Forbes Global snapshot, end-of-year view provided on the balance2000, with a revenue cutoff of $10 billion. We then pare sheet in a company’s annual report.the combined list down to the manufacturing, retail and Opinion Componentdistribution sectors, thus eliminating certain industries, The opinion component of the ranking is designed tosuch as financial services and insurance, which do not provide a forward-looking view that reflects the progresshave physical supply chains. companies are making as they move toward the ideal- ized demand-driven blueprint. It’s made up of two com-Financial Component ponents, each of which is equally weighted: a GartnerROA is weighted at 25 percent, inventory turns 15 per- analyst expert panel and a peer panel.cent, and growth 10 percent. Inventory offers some The goal of the peer panel is to draw on the extensiveindication of cost, and ROA provides a general proxy for knowledge of the professionals that, as customers and/oroverall operational efficiency and productivity. Revenue suppliers, interact and have direct experience with thegrowth, while clearly reflecting myriad market and companies being ranked. Any supply chain professionalorganizational factors, offers some clues to innovation. working for a manufacturer or retailer is eligible to be onFinancial data is taken from each company’s individual, the panel, and only one panelist per company is accept-publicly available financial statements. ed. Excluded from the panel are consultants, technol- The weighting within the financials is the same as ogy vendors, and people who don’t work in supply chainlast year. Prior to 2010, inventory was weighted at 25 roles (such as public relations, marketing, or finance).percent. We had considered dropping it altogether. We accepted 246 applicants for the peer panel thisAs much as inventory is a time-honored supply chain year, with 173 completing the voting process. Participantsmetric—one of the few “real” supply chain metrics on came from the most senior levels of the supply chain orga-a company’s balance sheet—there have always been nization across a broad range of industries. There wereissues with it, not the least of which is that higher 37 Gartner panelists across industry and functional spe-turns don’t always point to the better supply chain. At cialties, each of whom drew on his or her primary fieldthe same time, it’s a metric that’s widely known and research and continuous work with companies.understood, both inside and outside the supply chain Organizations must receive votes from both panels tocommunity. Despite the issues, it’s not entirely invalid be included in the ranking. Therefore, a company thatas an indicator, particularly if combined with other had a composite score fall within the Supply Chain Topmetrics. Therefore, we decided to leave inventory in, 25 solely based on the financial metrics would not bebut reduce its weighting. included in the ranking. Since 2009, we’ve used a three-year weighted aver- The regional breakdown of voters continued to beage for the ROA and revenue growth metrics (rather a particular emphasis for us, and we made significantthan the one-year numbers we had previously used), and progress this year. In the past, North American votersa one-year quarterly average for inventory (rather than made up 80 percent of the total, despite many effortsthe end-of-year number we had previously used). The to get a more even regional distribution. Last year, weyearly weightings are as follows: 50 percent for 2011, 30 made some inroads toward increasing the percentagepercent for 2010, and 20 percent for 2009. of voters from Europe and Asia/Pacific. This year, the The shift to three-year averages was put in place to improvement was even more robust, providing a moreaccomplish two goals. The first was to smooth the spikes and balanced global view of supply chain leadership, withvalleys in annual metrics, which often aren’t truly reflective 43 percent from North America, 33 percent fromof supply chain health, that result from events such as acqui- Europe, and 24 percent from Asia/Pacific. We expectsitions or divestitures. It also accomplishes a second, equally this trend to continue towards fully balanced regionalimportant goal: to better capture the lag between when a representation.supply chain initiative is put in place (a network redesign or anew demand planning and forecasting system, for example) Polling Procedure and when the impact can be expected to show up in finan- Peer panel polling was conducted in April 2012 via a Web-cial statement metrics, such as ROA and growth. based, structured voting process identical to previous years. Inventory, on the other hand, is a metric that’s much Panelists are taken through a four-page system to get to theircloser to supply chain activity, and we expect it to reflect final selection of leaders that come closest to the demand-initiatives within the same year. The reason we moved to driven ideal, which is provided in the instructions on thea quarterly average was to get a better picture of actual voting website for the convenience of the voters.inventory holdings throughout the year, rather than the Here’s a breakdown of the voting system:18 Supply Chain Management Review • September/October 2012 www.scmr.com
  • 10. • The first page provides instruc- ership in the global supply chain. ners. We look forward to continu-tions and a description of the Companies that move fastest into ing to share the lessons learned,demand-driven ideal. global markets with innovative providing a platform for informed • The second page asks for products—coupled with supply and provocative debate, and help-demographic information. chains that are customer-driven, ing the supply chain community • The third page provides pan- adaptable to change and resilient provide vital contributions to theelists with a complete list of the to disruption—will be the win- global economy. j j jcompanies to be considered. Weask them to choose 30 to 50 that,in their opinion, most closely fit thedemand-driven ideal. • After the subset of leaders ischosen, the form refreshes, bringingjust the chosen companies to a list.Panelists are then asked to force-rank the companies from No. 1 toNo. 25, with No. 1 being the com-pany most closely fitting the ideal. Individual votes are tallied acrossthe entire panel, with 25 points earnedfor a No. 1 ranking, 24 points for aNo. 2 ranking and so on. The Gartneranalyst panel and the peer panel usethe exact same polling procedure. By definition, each person’sexpertise is deep in some areasand limited in others. Despitethat, panelists aren’t expected toconduct external research to placetheir votes. The polling system isdesigned to accommodate differ-ences in knowledge, relying on what We focus on your customers.author James Surowiecki calls the“wisdom of crowds” to provide the Kenco’s supply chain solutions go beyond the shipping dockmechanism that taps into each per- to satisfy your customers—during their coffee break or anyson’s core kernel of knowledge and time. How? We combine common sense customer service withaggregates it into a larger whole. unparalleled execution, driving continuous value to you—and your customers. Kenco provides distribution and fulfillment,Composite Score comprehensive transportation services and intelligentAll this information—the three information technology, all engineered for operationalfinancials and two opinion votes—is excellence.normalized onto a 10-point scale andthen aggregated, using the afore- For common sense solutions that delivermentioned weighting, into a total uncommon value, turn to Kenco.composite score. The compositescores are then sorted in descend-ing order to arrive at the final SupplyChain Top 25 ranking.Raising the Leadership Bar Common Sense, Uncommon ValueThe goal of the Supply Chain Top 1-800-758-3289 | solutions@kencogroup.com | kencogroup.com25 is to help raise the bar for lead-www.scmr.com Supply Chain Management Review • September/October 2012 19 SCMR_HP_4-5X7-5_Coffee.indd 1 8/16/12 10:00:31 AM

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