Top Consumer Package Goods Supply Chains
At the end of last year, the consultants at Kantar once again released their annual PowerRanking report.
The full study 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 the categories included in the survey.
The rankings for last 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 take part, with about 80 participant companies in each group.
Supply Chain Digest Says... |
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| “PepsiCo is the most efficient and punctual company that I receive. Its check-ins are always seamless and its deliveries are never late,” one retailer said. |
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Both manufacturers and retailers are from the consumer packaged goods, food and beverage areas. That means manufacturers in such categories as apparel, electronics, hard goods, etc., are not included. Similarly, the participating retailers are drawn exclusively from sectors such as mass merchandise, traditional grocery, warehouse clubs, and drug store chains that focus on consumer packaged goods sales, and does not for example include department stores or most specialty retail areas. For the last few of years, however, Amazon.com has been included in the retail group.
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The scores represent the percentage of respondents that place a given manufacturer or retailer as having one of the top three supply chains in the industry.
So the analysis pool is limited to CPG type companies and their retail channel partners. That said, below are the top rated consumer goods supply chains for 2019 from the Kantar survey.
Just to be clear, the results say that 47.8% of retailers placed number 1 PepsiCo as having one of the top three CPG supply chains, as did 34.8% of retailers for number 2 Coca-Cola, etc.
The rest of the top 10: P&G, General Mills, Nestle, Unilever, AB InBev, J&J, Mondelez and Kellogg.
The report also includes some comments from retailers.
“PepsiCo is the most efficient and punctual company that I receive. Its check-ins are always seamless and its deliveries are never late,” one retailer said.
Another commented that “Procter & Gamble, relative to other top tier CPG companies, it has had limited interruption in its ability to provide consistent fill rates and on-time delivery that meet our performance standards."
Next month, we’ll be back with the top 10 retail supply chains.
MIT’s Yossi Sheffi on what to Do about Coronavirus
The spreading coronavirus in China and now beyond is wreaking havoc on supply chains of thousands of companies in retail, wholesale and consumer goods sectors.
What to do?
Dr. Yossi Sheffi of MIT has written a couple of excellent books on supply chain risk management (e.g., The Resilient Enterprise,) so he comes with some credentials in terms of offering thoughts on the current coronavirus crisis.
Writing recently in the Wall Street Journal, Sheffi offers five actions companies should consider now:
1. Set up a central emergency management center: At this point it can be virtual but should include a clear roster of participants with clear decision-making rules in case of a pandemic.
2. Review the company's product portfolio and the customer base in order to set priorities: If capacity is reduced, there will need to be rules for which products should be built and which customers should be supplied first.
3. Review suppliers: Who makes critical parts? Are there alternate sources? What is the suppliers' inventory status?
4. Plan for operating to maximize cash flow rather than profits.
5. Maintain communications with federal and local authorities, as well as Chinese and other Southeast Asian friends and colleagues on the ground.
"Hoping for the best while preparing for the worst may not seem like a rigorous business approach to the crisis," Sheffi concludes. "But given our lack of knowledge, it is the most prudent strategy for managing risk."
Macy’s Revamping Dated Supply Chain
Macy’s chief supply chain officer Dennis Mullahy – the retailer’s first – is making major changes to supply chain strategy, notably ending the use of separate distribution networks for store and ecommerce channels.
Among many changes and initiatives, Macy’s will now fully implementing its "hold and flow model," which says initial allocations to stores should be light and replenishment flexible to feed stores that need it and avoid the markdowns that result from feeding stores that don't.
In the new model, multipurpose warehouses will hold inventory, which will either replenish stores or fulfill ecommerce orders. Macy's four existing ecommerce warehouses will transition to the multipurpose function.
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