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Amid severe and ongoing disruption, organizations capable of juggling conflicting priorities to operate agile, robust, transparent, and ethical supply chains are impressive, to say the least.
The Gartner Supply Chain Top 25 releases rankings every year, and the 2023 list features a few new logos as well as businesses from years past that have sustained supply chain excellence. The compilation celebrates companies whose supply chain strategies have shown them to be purpose-driven, disruptive, and early adopters of innovative technologies.
To recognize the most sustained examples of supply chain excellence, Gartner lists Amazon, Apple, Procter & Gamble, and Unilever as Supply Chain Masters—an accolade earned as a result of having attained top-five composite scores in the Gartner Supply Chain Top 25 for at least seven out of the past 10 years.
Gartner Supply Chain Top 10
Over the years many innovative companies from the supply chain industry have made the list from larger online retailers working on a Waste-Free World Initiative and closed loop recycling system like Alibaba to palm oil supply chain specialists like Nestlé. These aforementioned three aside, here are the top 10 supply chain companies of 2023.
1. Schneider Electric
Schneider Electric, a global specialist in energy management and automation, operates a diverse supply chain in more than 100 countries.
Driving sustainability throughout the supply chain is a top priority for Schneider Electric, which includes embracing an approach known as “embedded sustainability,” to ensure that integrating environmental, health, and social value with core business activities does not impact price or quality.
At present, more than 73% of the company’s investments are being directed toward developing new and even more sustainable solutions.
In addition, Schneider Electric’s EcoStruxure platform and global supply chain are helping the company build a coalition of partners committed to driving innovation in the energy management industry.
2. Cisco Systems
Telecommunications technology conglomerate Cisco Systems earned second place in this year’s Gartner’s Supply Chain Top 25.
Thanks to its commitment to creating a dynamic, distributed supply chain, focussing on dual sourcing to build resiliency, and fostering meaningful relationships with its suppliers, Cisco has continued to thrive despite disruptions that happen to the global supply chain.
The company has also made a concerted effort to integrate sustainability initiatives with its supply chain business. Cisco has pledged to reduce its greenhouse gas (GHG) emissions by 30%, while 80% of its component, manufacturing, and logistics suppliers will have a GHG emissions reduction target.
3. Colgate-Palmolive
Colgate-Palmolive, which provides household and consumer products to millions of households around the world, has demonstrated agility, resilience, and commitment to supply chain sustainability.
Colgate-Palmolive has been recognized for its innovative whitening technology and a first-of-its-kind recyclable plastic tube, a concept it has also shared with third parties.
Colgate-Palmolive has consistently invested in new digital capabilities, including factory automation and advanced network modeling. For example, in a bid to connect manufacturing operations to its supply chain and boost supply chain reliability, the company is moving toward a predictive maintenance model.
Wireless sensors and AI-powered data analytics will enable Colgate-Palmolive to monitor equipment health 24/7, optimize its performance, and improve its inventory management.
4. Johnson & Johnson
Johnson & Johnson has proven itself to be an MVP when it comes to supply chains since the outbreak of COVID-19. In March 2020, the Johnson & Johnson Family of Companies and the Johnson & Johnson Foundation pledged $50 million to support frontline health workers with meals, personal protective equipment, training, and mental health support.
In 2022, Johnson & Johnson was a finalist for Gartner’s Power of the Profession Award for Customer under the Process or Technology Innovation of the Year. This was for its Real-Time Release Transformation and decision making when it comes to supply chain management.
Part of the company’s Healthy Lives Mission includes a commitment to using 100% recyclable, reusable, or compostable plastic, recycled paper, and pulp-based packaging by 2025.
5. PepsiCo
One of PepsiCo’s top priorities is investing in digital tools and advanced technologies to create a more efficient, streamlined supply chain.
Beverage manufacturers operating on this global scale can falter when it comes to supply chain offerings, but not PepsiCo. Its focuses include data integration to help the company better meet consumer demands and sophisticated data analytics to drive a more streamlined and cost-efficient chain.
Following the outbreak of COVID-19, PepsiCo showcased its agile supply chain by quickly launching two direct-to-consumer (DTC) offerings. Pantryshop.com and Snacks.com enable customers to customize a range of its products.
The company is also committed to driving sustainability through its innovative supply chain solutions. The company’s continued focus is on its corporate responsibility strategies. These include reducing carbon emissions, creating sustainable packaging, and supporting a more sustainable food system.
6. Pfizer
Pfizer earned its spot on the Gartner Supply Chain Top 25, holding sixth place for the second year in a row—a dramatic jump from 21st in 2021. The pharmaceutical company makes many different drugs and medications. One of its most recent products known to the wider public was the creation of a COVID-19 vaccination.
Pfizer aims to excel at its manufacturing efficiencies while still maintaining an intense testing process and rigorous standards. Complying with laws and staying up to date with advancements in the science and medical fields.
When it comes to medications, it can be tricky to deliver them on time, keep them at an affordable cost, and continue to develop and improve the formulas. Pfizer uses 58 manufacturing sites globally to keep its entire supply chain on track.
7. Microsoft
When it comes to software solutions and navigating supply chain management successfully, Microsoft does it well. It earned the seventh spot on Gartner’s list for 2023 and for good reason.
Microsoft has perfected its own supply chain enough to offer supply chain management tools for other businesses. In spring 2023, the company launched an array of products backed with AI to make processes easier for businesses—particularly when it comes to supply chains.
As for sustainability, Microsoft also teamed up with a renewable energy nonprofit this year that involves sourcing, buying, and utilizing clean steel. This material has been made with far fewer carbon emissions.
8. Lenovo
Lenovo has been recognized by Gartner in 2023 for the work it put into reducing delays and improving its supply chains. With 38 different manufacturing centers around the world, it has configured a system that allows for hardware and software solutions to get to clients and customers on time.
Most notably, Lenovo implements a wide range of new tech innovations in its supply chain management. Tools such as 5G, AI, AR/VR, Blockchain, Big Data, and IoT are vital to its success and the company found it was able to slash lead times and ship a staggering “four devices per second.”
Lenovo was also recognized at the World Economic Forum and had its Hefei Factory, LCFC, added to the Global Lighthouse Network—which consists of global manufacturers that are noticed for their leadership in the space and penchant to be on the cutting edge of technology.
9. Walmart
When it comes to revenue, the largest retailer in the world makes this list: Walmart. Walmart’s supply chain is often touted as one of the most effective in the world.
Over the past few years, Walmart has invested over $11 billion in e-commerce, supply chain, and technology. The company launched Walmart+, which rivals Amazon Prime, implemented a range of new fulfillment options — such as curbside pickups — and is upgrading its warehouse management system (WMS) to drive efficiency through its supply chain.
The company has also committed to achieving zero emissions by 2040.
10. L’Oréal
L’Oréal has made it into the top 10 of the Gartner Supply Chain Top 25 for the third time in a row thanks to its agile, customer-centric, and ethical supply chain practices.
“Digital Beauty” is a key focus of the company’s supply chain strategy. This includes a shift towards technology-augmented logistics and increased use of data to accommodate the rise of e-commerce.
L’Oréal also has a fantastic track record for its own corporate responsibility strategies. Not only is it the only company to rate Triple-A in the client data protection (CDP) ratings for four years in a row, but it was also featured in Ethisphere Institute’s 2023 list of the World’s Most Ethical Companies for the 14th time.
In addition, the L’Oréal for the Future program includes the goal of reducing the greenhouse gas emissions linked to the transport of its products by 50% between 2016 and 2030.