Lessons From the Gartner Supply Chain Top 25 for 2024
Aug 7, 2024
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Discover how the Top 25 supply chains have dramatically evolved over the past two decades. Learn about the standout companies and the surprising shifts in rankings. Explore how industry leaders integrate environmental, social, and governance principles into their operations. Uncover key trends that shape successful supply chain leadership, focusing on talent acquisition and operational resilience. Gain actionable insights for implementing sustainability in supply chain practices. Delve into strategies that drive value and foster adaptability in a changing market.
The evolution of supply chains has shifted towards integrated, demand-driven networks, emphasizing agility and innovation in a changing global landscape.
Leading supply chains are increasingly focusing on talent management, AI integration, and ESG practices to enhance resilience and competitive advantage.
Deep dives
Evolution of Supply Chain Practices
Over the last two decades, supply chain practices have significantly evolved from isolated models to integrated, demand-driven networks, reflecting the dynamic changes in the global landscape. The introduction of the Top 25 rankings in 2004 aimed to elevate supply chain excellence, focusing initially on metrics such as inventory management and asset returns. This evolution is essentially about adapting to the ever-changing environment while promoting innovation and efficiency within organizations. By continually integrating feedback from professionals and the broader community, supply chains now prioritize agility and responsiveness to maintain competitive advantages.
Identifying Key Macro Trends
Three macro trends have emerged as distinguishing factors among leading supply chains: talent management, the integration of artificial intelligence, and the adoption of anti-fragility principles. Companies are now making smarter investments in cultivating talent, enhancing leadership skills, and minimizing workplace friction to retain skilled employees. The rise of AI has allowed top firms to optimize operations through established data frameworks, thereby improving customer experiences and shortening operational lead times. Lastly, companies are rethinking their risk strategies to thrive amid uncertainty, utilizing technology to redefine their operational frameworks and bolster resilience.
Recognition of Top Performers
The latest Top 25 rankings revealed both enduring leaders and notable newcomers that exemplify supply chain excellence. Long-standing Masters such as Apple, Amazon, and Schneider Electric have demonstrated consistent leadership and innovation in their supply chains, with Schneider Electric ranking first for two consecutive years due to its sustainability initiatives. Remarkably, companies like Nvidia have surged into the upper echelons, capitalizing on their leadership in the AI sector. This year’s rankings also emphasized the importance of integrating ESG practices into everyday operations, showcasing firms that achieve competitive advantages through sustainable practices rather than merely meeting benchmarks.
How the Top 25 and the supply chains it ranks have evolved over the past two decades. (1:10)
The common themes and context among organizations that stood out this year. (3:38)
Surprises and standouts among company rankings. (7:50)
How the Top 25 leaders are incorporating environmental, social and corporate governance (ESG) into their operations. (12:50)
Recommendations for supply chain leaders based on practices from the Top 25 organizations. (14:07)
In this episode of the Gartner Supply Chain Podcast, hosts Thomas O’Connor and Lindsay Azim speak with Simon Bailey, Gartner VP Analyst and Top 25 Program Lead Author, on how both the program and supply chains have evolved in the last 20 years. Simon provides insight into this year’s rankings, macro trends, and specific examples of how organizations emerge as leaders across talent, sustainability, digitalization and risk and resilience. Simon also provides several recommendations for supply chain leaders seeking to drive value using transferable lessons from this year’s masters and supply chain leaders.
Simon Bailey is a VP analyst in Gartner’s CSCO enablement team, supporting CSCO’s strategy development in areas including customer centricity, ecosystem orchestration and sustainability. He is also the lead author for Gartner’s Top 25 program and recent published work includes The Gartner Supply Chain Top 25 for 2024: Insights on Leaders, The Gartner Supply Chain Top 25 for 2024: Methodology and The Gartner Supply Chain Top 25 for 2024: Rankings. He has also lead the Supply Chain Strategy Predicts process for several years and recently published Predicts 2024: Reshape Supply Chain Strategy to Outpace Disruption, and Use Ecosystem Partnerships to Achieve Sustainability Goals and collaborated on A Three-Step Approach for Driving Growth via the Supply Chain.