Supply Chain News: Top Retail Supply Chains 2011 Supply Chain News: Top Retail Supply Chains 2011

 

 
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  Supply Chain Trends and Issues: Our Weekly Feature Article on Important Trends and Developments in Supply Chain Strategy, Research, Best Practices, Technology and Other Supply Chain and Logistics Issues  
 
 
  - March 6, 2012 -  

Supply Chain News: Top Retail Supply Chains 2011

 

Walmart Dominates the Rankings, more than 60 Percentage Points Ahead of Number 2 Kroger

 
     
     
  by SCDigest Editorial Staff  
     
 
SCDigest Says:

Walmart as usual came out on top with a dominating performance, selected in the top three by 91.5% of manufacturers. That was more than 60 percent point shigher than number 2 Kroger.


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What companies have the top supply chains among consumer packaged goods-oriented retailers?

Last week, we took a look at the top consumer packaged goods and food/beverage manufacturing supply chains, as ranked by the annual Kantar Retail PoweRankings survey (see Top CPG Supply Chains 2011.)

This week, we look at the top retail supply chains from that same survey, focused on the grocery, mass merchant and drug store retailers that are the main channels for those CPG products.

The unique PoweRankings report was started by Cannondale Associates many years ago. Kantar acquired Cannondale in 2010.

The full report covers a number of company performance measures for both consumer goods manufacturers and retailers, including such areas as brand power, marketing programs, sales teams, overall business fundamentals, and more. Supply chain management is one of those categories included in the survey.

The rankings for this year, as always, were developed through the interesting methodology of asking retailers to rate manufacturers on each of these categories, and manufacturers to rank retailers on a similar set of attributes. Most major CPG companies and retailers participate, with some 400 respondents in total across both groups.

Both manufacturers and retailers are from the consumer packaged goods, food and beverage areas. That means manufacturers in such categories as apparel/soft goods, electronics, hard goods, etc. are not included. Similarly, the participating retailers are drawn exclusively from sectors that focus on consumer packaged goods sales.

A graphic of the top retail supply chain rankings is shown below. The scores represent the percentage of manufacturer respondents that placed a given retailer as having one of the top three supply chains in the industry.

 

Top Retail Supply Chains for 2011

 

 

Source: Kantar Retail

 

Walmart as usual came out on top with a dominating performance, selected in the top three by 91.5% of manufacturers. That was more than 60 percent points higher than number 2 Kroger, which had a score of 31.1%.

We will note, however, that on recent years Kroger has actually made very strong gains, with a number of manufacturers noting its great strides in supply chain management performance.

 

(Supply Chain Trends and Issues Article - Continued Below)

 

 
 
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There was frankly fewer dynamics in the retailer scores this year than there was on the CPG side, with most scores changing very little from 2010.

 

Walgreen's made the biggest positive move, up 3.9 percentage points over 2010. On the negative side,  Safeway saw its score drop by 3.8 points year over year.

However, there were some changes in the top 10, with Giant Eagle and Wegmans dropping out this year, while Meijer entered the top rankings.

"No one even comes close to the expertise and experience that Walmart conveys in this area," one respondent noted. "Their people know more than our people and are light years ahead of the supply chain needs in their business."

But, said another, "Target is able to stay incredibly efficient – utilizing their cross-docking system and merchandising in store to offer value and differentiation."

Any reaction to the top retailer supply chain rankings? Let us know your thoughts at the Feedback button below.

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