SCDigest: Top Consumer Goods and Retail Supply Chains for 2009
By SCDigest Editorial Staff
a special arrangement, presented here for discussion is a summary of
a current article from Supply Chain Digest.
Each year, SCDigest reports
on the annual survey results from Cannondale Associates, which ranks the
top consumer packaged goods industry supply chains and the top retail supply
chains in the primary store segments that sell those packaged goods products. The
full Cannondale survey and report, which it calls PowerRankings, was released
in late 2009 and 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., as well as supply chain.
Too often, Cannondale
says, pressures lead manufacturers and retailers to focus on “the right
now” instead of doing what is “right” for long-term business success.
As a result, Cannondale
says manufacturers and retailers too often seem to be working at cross
purposes. Instead, both sides need to pursue a more collaborative model
that focuses on the five elements of the Cycle of Success:
- Follow Through
We’ll start with the top
consumer packaged goods supply chains, as rated by their retail channel
partners. The percentages in the chart below reflect the number of retailer
respondents who said a given manufacturer’s supply chain was in the top
three in the industry. For a number of consecutive years, Procter & Gamble
has come out on top, though it took a bit of a hit, down almost 11 percentage
points from its 2008 rankings, which were down five percent from 2007.
The report says there was some feedback from retailers that P&G had
become “less flexible” than in the past. However, it still has a fairly
sizable margin over second place Kraft.
Meanwhile, Nestlé made
a big move both positionally and percentage-wise, up five percentage points
over last year’s rankings. ConAgra and Campbell cracked the top 10 this
year, replacing Clorox and Coca-Cola on the Cannondale list.
One retailer, for example,
said “ConAgra has really stepped up its game on supply chain. They went
from a middle of the pack supplier to one of our best.”
Among consumer packaged
goods focused retailers, it should come as no surprise that Walmart came
out on top, named among the top three by an astounding 95.6 percent of
manufacturer respondents – increasing that number by 3.5 percentage points
Costco, meanwhile, jumped
from fourth to second place, moving past last year’s number two Target,
which fell 4.7 percentage points. Meijer also took a fairly large percentage
drop, while Kroger enjoyed a big percentage gain, up 6.3 points.
Because of a tie, the
top 10 is really a top 11, with Safeway and Giant Eagle new to the list
for 2009, and SuperValu falling off.
“Costco is a Supply Chain
that just happens to have a big box on the end of it. They are relentless
when it comes to improving the efficiency of every aspect of the supply
chain,” one manufacturer noted.
Kroger also got kudos
from one manufacturer respondent, who said that the grocer “is extremely
progressive in what they are trying to do with their supply chain.”
Questions: What’s your reaction to this year’s Cannondale CPG manufacturer
and retail supply chain rankings? Of the five listed criteria (simplicity,
consistency, follow through, creativity, involvement), which ones do
you consider becoming more critical to supply chain management in the coming