4 Supply Chain Companies Using Trends and Innovation to Succeed

These supply chain companies were ranked among the highest in the world last year based on innovation and performance.

4 Supply Chain Companies Using Trends and Innovation to Succeed

4 Supply Chain Companies Using Trends and Innovation to SucceedYou know it’s important to not only come up with innovations that make your business run smoother, but also to follow the trends of what works best. The supply chain companies experiencing the most success design great processes and streamlined cycles to produce and distribute products. Their attention to detail never ends until products reach their final destinations.

For the past 12 years, Gartner has ranked the world’s Top 25 Supply Chain Companies based on multiple categories, including Gartner and peer opinions, three year weighted statistics, inventory turns, and composite scoring. The numbers those in the top rankings of supply chain companies tell the tale; however, understanding why leaders ranked high is crucial if you want to find your own success in the supply chain industry.

These four supply chain companies led the way in 2016 specifically because of innovation, consistency, and leadership in the industry.

Starbucks®

Though you might only think of its retail stores, Starbucks is a great example supply chain innovation, especially when it comes to technology. Starbucks spends 1/5th of its annual revenue on technology and innovation alone. They have done this on two fronts:

  • The consumer: Starbucks developed, and continues to enhance and perfect, its mobile application for consumers letting them order ahead to “skip-the-line” at their store fronts.
  • The back end: Starbucks uses an automated information system to know and understand where and what its demand is in real time. If time is money, Starbucks is rolling in both.

McDonalds®

Another player whose name conjures up images of its consumer outlets, in order to be successful in the supply chain industry, McDonalds “super-sizes” effort in their supply chain management and processes. Most notably, they made changes in their menu options (who doesn’t love all-day breakfast) and switched up many of their sources for where their meat and food comes from.

Without a strong supply chain, McDonalds wouldn’t be able to successfully fill demand for their new and super-popular time-limited menu items. Not only does this keep them in better touch with the audience they need to be successful, it helps insure they will have fewer disruptions in their supply chain. As a company, if your supply chain goes through portals that might be shut down, experience material or labor shortages, or have quality-related issues, it could seriously impact your company’s bottom line.

Nike®

Because Nike has over 500,000 products available to their consumers, a strong supply chain is imperative to a smoothly operated business. What did Nike do this year to get ranked so high on the list? They improved efficiency and opted for increased sustainability.

  • At its new Logistics Campus in Europe, Nike recycles 95 percent of its waste from the campus and has reduced its CO2 emissions by 30 percent.
  • This campus includes six wind turbines that could power 5,000 common households and solar panels that could cover 3 soccer fields.

Nike calls this new campus “the supply chain of the future” and represents a view to the long term. It’s a win-win strategy; investments in efficiency and sustainability can positively impact your company’s bottom line, but they can also positively impact customer perception and emotional connection.

Amazon®

It’s impossible to leave off one of the most impressive and dominant supply chain companies from the list. When it comes to innovation in the supply chain industry, Amazon’s technology is racing out ahead of the pack. Some of their innovations getting the biggest hype:

  • Drone delivery: Wouldn’t it be nice if you could order your groceries, birthday gifts, or just anything (literally, ANYTHING) and have it dropped to your doorstep within hours? Amazon is testing out drone deliveries and plans to make this a huge part of their supply chain in the future. Drones flying around might be a spooky thought, but at least you’d never miss a package because the delivery man is frightened by your dog, right?
  • Delivery fleet: Amazon now has their own delivery fleet and airline carrier to deliver their products, eliminating third parties to create the most efficient supply chain system.
  • New warehouses and fulfillment centers: As Amazon grows, they are not afraid to invest in new warehouses to make their system more efficient, and invest in new warehouses and distribution centers based on both the past (purchase histories) and the future (population and economic trends). When it comes to supply chain, making investments to reduce transportation time and cost streamline operations and improve your ability to serve your customers.

To win in the supply chain industry, you must not only follow these trends with efficiency, technology, and sustainability, but you need to be able to come up with innovations of your own.

Every industry has different supply chain needs and capabilities; not all systems and technologies work for everyone. However, each company has the same end goal: For the buyer to be happy with the product and the time and manner in which it’s delivered. Looking at ways these supply chain companies led the way last year can help your business perfect is supply chain processes and systems in a New Year that’s promising to get off to a fast start.

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Even if you’re already factoring, we would be happy to give you a free, no-obligation quote so you can be sure that you have the best financing options in place for your business; simply submit the form below:

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