Top supply chains identified

By Staff -- Modern Materials Handling, 1/1/2006

For the second consecutive year, Dell took top honors in AMR Research's Supply Chain Top 25, a list exemplifying the very best in supply chain practices. Published recently in "The AMR Research Supply Chain Top 25 for 2005," the list identifies the manufacturers and retailers that exhibit superior supply chain performance.

Rounding out the top three performers are Proctor & Gamble, in the second spot, followed by IBM in third. Both companies moved up a spot from the previous year's rankings.

Nokia falls two slots to fourth in 2005, while Toyota Motor moves into the fifth spot from sixth last year.

Top supply chain leaders shape demand, instantly respond to market changes, and outflank competitors, according to AMR Research. Benchmarking data say leaders carry 15% less inventory, are 60% faster to market, and complete 17% more perfect orders.

The report identifies what is publicly known about each company's past performance, and augments this information with analysis of future earning potential as dictated by supply chain dominance.

The first component of the ranking is publicly available financial data, which comprises 60% of the total score and of that, return on assets and inventory turns account for 25%, and trailing 12 months growth accounts for 10%. The second component of the ranking is AMR's opinion, which is 40% of the total score. The opinion component was based on a structured voting methodology across AMR Research's team of analysts.