Global pharma leaders like Johnson & Johnson and AstraZeneca are featured in Gartner’s Supply Chain Top 25. Explore trends in talent, AI, and antifragility.
In the ever-evolving world of global supply chains, certain companies stand out for their excellence in managing complex logistics, driving innovation, and maintaining sustainability. The Gartner Group, a leading management consulting firm, annually ranks these top-performing organizations. This article delves into the companies that have earned their place in Gartner’s Supply Chain Top 25, with a focus on the bio/pharmaceutical industry.
The Methodology Behind the Rankings
Gartner’s Supply Chain Top 25 ranking is based on a comprehensive assessment that evaluates both business performance and community opinion. This ranking comprises two key components:
1. Business Performance: This is measured through public financial data and ESG (environmental, social, and governance) metrics, offering insights into how companies have performed over the past three years.
2. Community Opinion: This reflects the views of industry peers and Gartner experts, offering a perspective on the future potential and leadership of these companies in the supply chain community.
These elements are combined into a composite score, which includes:
- Peer opinion score (25%)
- Gartner expert score (25%)
- Return on physical assets (ROPA) score (5%)
- ROPA change score (10%)
- Inventory turns score (5%)
- Revenue growth score (10%)
- ESG component score (20%)
Gartner’s analysis covers companies from the Fortune Global 500 and the Forbes Global 2000, applying a revenue threshold of $15 billion. Companies without physical supply chains are excluded.
Top Supply-Chain Performers in 2024
Schneider Electric claimed the top spot in this year’s ranking, followed by Cisco Systems, Colgate-Palmolive, Microsoft, and Johnson & Johnson. Notably, Nvidia made a significant leap into the Top 25, securing the seventh position due to its strong financial performance.
Bio/Pharmaceutical Companies in the Top 25:
1. Johnson & Johnson (Ranked 5th)
2. AstraZeneca (Ranked 12th)
3. Pfizer (Ranked 20th)
Characteristics of Leading Supply Chains
The companies that make it to the top of Gartner’s rankings share several key characteristics that set them apart:
1. Attracting and Engaging Talent
A crucial factor for supply chain success is talent management. Leading companies excel at attracting and retaining talent, driving performance through a focus on employee needs such as respect, recognition, autonomy, and flexibility. They emphasize cultural transformation and innovation, leveraging diversity, equity, and inclusion (DEI) initiatives. These companies are also investing in AI to redesign processes, reduce work friction, and enhance knowledge management.
2. Embracing AI-Driven Advances
Artificial Intelligence (AI) is reshaping supply chains, particularly in areas like customer service, planning, and manufacturing. The most advanced supply chains have built strong digital foundations and are now exploring both traditional AI and generative AI (GenAI) to develop practical use cases that enhance operational efficiency. The success of AI strategies is closely tied to talent management, as AI will significantly impact workforce demands and capabilities.
3. Developing Antifragile Supply Chains
In response to a volatile, uncertain, complex, and ambiguous global environment, leading supply chain organizations are evolving toward what Gartner calls “antifragile” supply chains. These supply chains not only withstand disruption but also thrive in uncertainty, making better-informed decisions about resource use and investments. Antifragility helps organizations link risks, disruptions, and performance, allowing them to achieve their objectives even amid chaos.
The “Masters” of Supply Chain Excellence
Gartner also recognizes sustained excellence through its “Masters” category, which includes companies that have ranked in the top five for at least seven of the last ten years. This year, Amazon, Apple, Procter & Gamble, and Unilever retained their Masters status, showcasing their consistent leadership in supply chain management.
The Future of Supply Chains: Adapting to New Challenges
As the global supply chain landscape continues to evolve, companies that can effectively manage talent, harness AI, and build antifragile systems will be best positioned to lead. The inclusion of bio/pharma companies like Johnson & Johnson, AstraZeneca, and Pfizer in Gartner’s Top 25 highlights the critical role that robust supply chains play in the success of the pharmaceutical industry, particularly in an era of unprecedented challenges and rapid change.
Global Pharma
Global Pharma
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