The Supply Chain Top 25 is Revealed

AMR Research has released the findings from its sixth Supply Chain Top 25, an annual initiative that aims to raise awareness of the supply chain discipline and how it impacts the business. Apple held onto the No 1 position for the third year in a row, making it the first time a company has been ranked number one for three consecutive years in the Supply Chain Top 25 research.

Analysts attribute Apple's success to its ability to consistently bring both operational excellence and innovation excellence to bear in some of the most competitive markets in the world. Apple has broken new ground in transforming a supply chain into a value chain by starting with the consumer experience and designing its network to serve that master first and foremost.

"By embedding product and process innovation in supply chain operations and consciously managing and shaping demand from a customer, production and fulfillment standpoint, the companies included in our Top 25 are doing a lot more than just shipping," said Kevin O'Marah, group vice president at AMR Research.

Second-placed Procter & Gamble (P&G) is the only company to have been in AMR's Supply Chain Top 25 for six years running, and it still commands tremendous respect among its peers, according to AMR Research. As one of the original pioneers of demand-driven principles in supply chain, P&G remains at the forefront of areas such as specialized production operations in emerging markets and has established new beachheads of leadership in other areas, including its use of innovation networks to tap external expertise for at least 50 percent of its new product ideas.

Cisco Systems has climbed steadily in AMR's rankings for five straight years, moving up two slots to No. 3 this year, while five companies — Research In Motion (RIM), Amazon.com, McDonald's, Microsoft, and Inditex – joined the Top 25 for the first time in 2010.

"In designing your own supply chain strategy, take a cue from the leaders: Work outside-in, starting with your customers and working your way back and around your network of trading partners to design a profitable response," Mr. O'Marah said. "Remember that one size does not fit all, define how many supply chain types you have, and design a customized response for each."

The Supply Chain Top 25 rankings comprise two main components: financial and opinion. Public financial data gives a view into how companies have performed in the past, while the opinion component provides an eye to future potential and reflects future expected leadership, a crucial characteristic. These two components are combined into a total composite score.