Samsung tops Asian supply chain ranking

26 July 2012

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26 July 2012 | Kamalpreet Badasha

Samsung has taken top spot in a ranking of the supply chains of companies based in the Asia Pacific region.

The firm beat Hyundai Motors and Tata Motors into second and third place respectively.

Of the top 15 companies, four are based in South Korea – Samsung (1st), Hyundai Motors (2nd), Hyundai Heavy Industries (9th) and LG Electronics (13th). A further four, Toyota (7th), Seven & I Holdings (10th), Canon (12th) and Komatsu (14th) have their headquarters in Japan.

The majority of companies in the listing are from the high-tech, consumer electronics, automotive, retail and industrial products sectors. Firms are judged using revenue growth, return on assets, inventory and peer opinion.

Research firm Gartner, which compiled the ranking, believes the results show that Japan is gaining stability having recovered from the global economic crisis and natural disaster of 2011.

It said the best organisations had common characteristics: a focus on growth and low-cost innovation; moving supply chain bases when necessary; with trade growth within Asia Pacific offsetting the global downturn.

“Companies leading the top supply chains in Asia Pacific have demonstrated capabilities in demand management, operational excellence and innovation,” said Debashis Tarafdar, Gartner’s research director in Singapore.

“They are using best practices, including demand sensing and shaping, segmentation and collaboration, to help manage demand volatility and deliver predictable results. To measure supply chain performance, they select the right metrics that are aligned to the company’s overall business objectives. They also build resiliency into supply network design, and implement risk management strategies across trading partner networks.”

Vikas Sarangdhar, research director at Gartner in Mumbai, said: “While demand in Asia Pacific is growing, inflation, rising costs and a tightening labor market pose challenges for companies in the region. Economic challenges in the rest of the world also amplify the risks, as a further sharp fall in exports to advanced economies and capital outflows would impact Asia both directly and through knock-on effects on domestic demand.”

● Although it topped the ranking in Asia, Samsung was only rated number 13 on the worldwide ranking topped by Apple published in May.

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