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  
 
 
  - January 5, 2009 -  

Supply Chain News: Who has the Top Retail Industry Supply Chains for 2008?



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Wal-Mart Continues Rankings Dominance, while Publix makes a Move

 
     
 

SCDigest Editorial Staff

SCDigest Says:
Another respondent observed that “Costco is focused on getting product to their shoppers in a timely and efficient manner versus trying to shift as many costs to the vendors as possible.”

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Who has the top retail supply chains? In December, SCDigest reported on the annual survey results from Cannondale Associates which ranked the top consumer packaged goods industry supply chains. (See Who has the Top Consumer Goods Industry Supply Chains for 2008?) This week, we report on similar results for retailers.

The full Cannondale survey and report, which was recently released, 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, etc. The rankings are developed by asking retailers to rate manufacturers on each of these categories, and manufacturers that participate to rank retailers on a similar set of attributes.

Both manufacturers and retailers are from the packaged goods, food and beverage areas, meaning the retailers rated are drawn exclusively from sectors such as mass merchandise, traditional grocery, warehouse clubs, and drug store chains.

The theme of this year’s overall report is “Full Tilt,” which Cannondale says is a new era of retailing that is marked by increased sophistication in terms of customer segmentation, marketing, and other strategies.

In Cannondale’s view of a Full Tilt retail world, “Of all the areas measured in the PowerRanking, Supply Chain is probably the measurement most effected in the move to Full Tilt. As retailers look for ways to differentiate themselves and lower costs, the supply chain has come under fire for inefficiencies the retailers want to improve.”

Top Retail Supply Chains

Not surprisingly, Wal-Mart dominated the field as usual, with more than 90% of manufacturer respondents ranking its supply chain as one of the top three in retail. There was then a big drop off to number 2 rated retailer, Target, picked in the top three by just over 31% of manufacturers.

(Supply Chain Trends and Issues Article - Continued Below)

 

 
   
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The remainder of the top 10 is shown in the graphic below. Notable was the big move made by grocery chain Publix, whose rating increased by 7.6% in 2008 versus 2007.

One respondent commented that “Publix has an excellent Scorecard for supply chain with a strong focus on core metrics and strong collaboration with manufacturers.”

Costco also continued its move up the rankings. Another respondent observed that “Costco is focused on getting product to their shoppers in a timely and efficient manner versus trying to shift as many costs to the vendors as possible.”

There were two changes in the top 10 this year as well. Grocers chain Delhaize (Food Lion, Hannaford Brothers, etc.) and Safeway exited the top 10, replaced by SuperValu and CVS.

What’s your reaction to this year’s Cannondale retail supply chain rankings? Think any of the rankings are out of whack? What are the key attributes of a world class retail supply chain? Let us know your thoughts at the Feedback button below.

 
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