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Amazon, H&M and Inditex on 2016 Gartner Supply Chain List

It is possible for a company to have excellent performance and future potential, despite economical challenges and growing technological demands.

Gartner announced the 2016 Supply Chain Top 25 list at its Supply Chain Executive Conference in Phoenix, Arizona, on May 19.

“2016 marks the 12th year of our annual Supply Chain Top 25 ranking. In this year’s edition, there are several longtime leaders with new lessons to share and a number of more recent entrants from the high-tech, industrial, chemical, auto and life sciences sectors,” Stan Aronow, research vice president at Gartner, said in a statement.

Unilever scored the top spot for the first time, McDonald’s placed second, Amazon followed in third, Intel in fourth and newcomer to the top five, H&M. All five had stellar composite scores above 4.49.

Inditex, the parent company of Zara, narrowly missed out on being included in the top five, finding itself in the sixth spot this year. Five new companies also made the list this year, including Schneider Electric, BASF, BMW, HP and GlaxoSmithKline.

The Supply Chain Top 25 rankings are broken into two main categories: overall company performance and supply chain community opinion. Public financial and CSR data provide Gartner with past company performance analysis. Future growth and leadership reputation create the foundation for the second category, supply chain opinion. A total composite score is then granted to companies ranked on the list.

Other rank evaluations included opinion of peers, inventory turns, three-year weighted revenue growth and a CSR component score.

Although scoring a spot on the list is a great industry accomplishment, the Masters category is an even higher honor for companies. Created by Gartner in 2015, the Masters category recognizes supply chain leadership over the past decade. Apple and P&G were the two companies that qualified for this separate ranking this year due to exceptional customer service and increased synchronization program development.

Regardless of scoring a spot on the Supply Chain Top 25 or Masters category, Gartner highlighted three standout trends for supply chain leaders this year: customer-driven partner integration requires a demand-driven value network in order for companies to fulfill supply needs of online customers; adoption of advanced analytics allows companies to operate efficiently throughout their supply chains; lastly, increasing emphasis on corporate social responsibility urges companies to handle environmental, social and governmental factors efficiently for better non-financial performance.