Samsung is Asia Pacific's top supply chain


Electronics giant Samsung leads Gartner’s new Top 15 Asia-specific supply chains list, revealed at the company’s executive conference in Sydney today

Samsung is Asia Pacific's top supply chain
Samsung top Asia Pacific supply chain

By Anna Game-Lopata | July 24, 2012

Electronics giant Samsung leads Gartner’s new Top
15 Asia-specific supply chains list revealed at the company’s executive conference in Sydney today.

Hyundai Motor, Tata Motors, Lenovo Group and Huawei Technologies snatched the next four positions respectively, while Australian retailer Woolworths sat pretty in sixth position.

Over 150 Asia Pacific-based executives are currently attending Gartner’s two-day Supply Chain Executive Conference where the research and advisory firm launched its first Supply ChainTop
15 ranked list highlighting the region.

The conference is also Gartner’s first-ever supply chain event to be held in Australia.

Gartner Research Director Vikas Sarangdhar says achieving low cost innovation is the top key issue to be raised at conference being held at the Sydney Convention and Exhibition Centre.

"Professionals in Asia don’t see demand as the problem it is in the western world, but the challenge for them is the management of demand," Sarangdhar says.

"As a response, we are seeing many companies in this region re-structuring their supply chains to align with the various divisions and components in order to cater to demand."

Other challenges include rising inflation and rising resource costs.

Sarangdhar, who authored the Gartner Supply Chain Top 25 report released today, says the initiative aims to raise awareness of supply chain discipline and how it impacts business results.

The Top
15 list of Asian-headquartered companies is an extension of the global ranked list
of 25
pioneered by US research firm AMR Research, recently acquired by Gartner.

Companies are identified as top performers based on revenue growth, return on assets (ROA), inventory and peer opinion.

"Samsung has demonstrated a solid balance of operational excellence, product innovation and end to end supply chain orchestration; from procurement to the end user," Sarangdhar says.

"We see Samsung, along with the other top ranked companies as mature users of Sales and Operations (S&OP) processes.

"They are able to work around their supply chain in the most efficient way."

Gartner’s Global Supply Chain Top 25, released earlier in the year places Apple in first position, followed by Amazon, McDonald’s and Dell.

Sarangdhar says the differences between companies like Apple and Samsung come down to a top reputation with peers and customers, along with the ability to shape demand.

"The top global companies like Apple and Amazon use best practices including demand sensing and shaping, segmentation and collaboration, to help manage demand volatility and deliver predictable results," he says.

"To measure supply chain performance, they select the right metrics that are aligned to the company’s overall business objectives.

"They also build resiliency into supply network design, and implement risk management strategies across trading partner networks."

Gartner's 2012 Supply Chain Top 15

2012 APAC Rank

2012 Overall Rank

Company

Return on Assets (1)

Inventory Turns (2)

Revenue Growth (3)

Composite Score (4)

1

13

Samsung Electronics

9.4%

17.1

15.9%

3.67

2

31

Hyundai Motor

8.7%

18.0

12.6%

1.95

3

42

Tata Motors

3.3%

5.9

44.0%

1.75

4

43

Lenovo Group

1.0%

20.8

16.7%

1.75

5

45

Huawei Technologies

9.8%

4.9

16.4%

1.73

6

57

Woolworths

10.5%

10.4

4.7%

1.56

7

69

Toyota Motor

0.6%

11.7

-6.6%

1.41

8

76

ASUSTeK Computer

7.5%

5.6

14.6%

1.35

9

81

Hyundai Heavy Industries

7.9%

7.5

8.8%

1.33

10

94

Seven & I Holdings

2.8%

20.0

-5.1%

1.11

11

104

Honda Motor

3.2%

7.2

-5.5%

1.03

12

111

Canon

5.7%

3.8

-1.7%

0.88

13

116

LG Electronics

-0.4%

20.8

-1.1%

0.83

14

118

Komatsu

4.8%

3.1

3.6%

0.78

15

121

Flextronics International

-8.2%

7.7

5.3%

0.72

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