How Objective and Accurate is the Gartner AMR Supply Chain Top 25?

Every year, the industry awaits the results of the much heralded Gartner Supply Chain Top 25 ranking. The list is intended “to raise awareness of the supply chain discipline and how it impacts business” - The Gartner Supply Chain Top 25.

For professionals based in Asia who deal with supply chain and manufacturing on an operational level, Gartner ranking is surprising to say the least, with companies like Apple and Wal-Mart making the top 10 despite their overall practices with suppliers and poor CSR efforts in Asia.

How relevant is this ranking given that most of these companies outsource their manufacturing to suppliers and contract manufacturers plagued with CSR issues in Asia?

Why is Apple #1 when its supply chain and product launch have been constantly affected by parts and labor shortages, not mentioning the lack of transparency on its CSR efforts. Gartner praised in this report Apple’s “embedded innovation, networked supply and demand shaping”. Interesting comment when most of its innovation is now driven by its contract manufacturers (e.g. Foxconn) and when its demand forecast has been quite poor with the iPad.

How much do the researchers at Gartner or AMR know on how these companies really operate in Asia? Do they have people on the ground to check the extent of the companies’ value chain network which the “integration” is praised so much in the report?

Last but not least, how biased is the ranking given many of the Supply Chain Top 25 companies are Gartner’s clients? Recently, other Gartner rankings like the IT Magic Quadrant  has been under heavy fire for being everything from merely subjective to rewarding companies that have paid Gartner the most money for its services. Gartner is well known in the industry for rewarding those who pay for it.

What’s your take on Gartner’s Top 25 Supply Chain? Accurate or way off? Do you agree or disagree with that ranking? Register, and leave you comments below.

Commentary from Louis Columbus
Louis Columbus, ran product management at Ingram Micro during the time period when Web-based EDI was being piloted.

I am a former Senior Analyst from AMR Research and was an employee at the firm when the AMR Supply Chain Top 25 methodology and program was launched. It was the most thorough and complete effort I’d ever seen in the four years I worked there.

I’ve worked with two of the main creators of the program and many of those who contribute their efforts to its completion. Kevin O’Marah is one of the primary architects.  Kevin is far and away the best and most brilliant analyst I have ever worked with, either as a client or a member of an analyst firm. Debra Hofman, Vice President, Supply Chain Research has an incredible work ethic and personally visits many if not all candidates for inclusion in the Supply Chain Top 25. She knows down to the metrics, measures of performance, dashboards and approaches each take to managing their supply chains. I’ve had discussions with her and seen her present to a depth no other researcher on supply chains has been able to.  These people live and breathe this research methodology and effort all year long.

Bottom line: It’s real and a tremendous amount of time, effort and analytical insight goes into this program.