Apple Knocks Nokia off AMR's #1 Spot

Apple Knocks Nokia off AMR’s #1 Spot

pcm_adminJune 18, 2008, 12:00 amJune 18, 2008

Apple Computer has traded places with Nokia on this year’s Top 25 Supply Chains list recently released by reknowned US research company AMR Research.

Last year, the computer giant came in second to the cell phone maker, but AMR praised Apple’s handling of the potential supply chain headaches that followed the introduction of the popular iPhone with grace and efficiency.

“With its introduction of the iPhone, Apple could have stumbled meeting demand or failed on quality,” says the AMR report.

“It did neither.”

“Behind-the-scenes moves like tying up essential components well in advance and upgrading basic information systems have enabled Apple to handle the demands of its rabid fan base without having to fall back on their forgiveness for mistakes.”

Procter & Gamble, which came in third last year, was bumped to fourth place this year by Dell, which returned to the list at third place after being left out last year due to AMR not having complete 2006 financial statements from the make-to-order computer manufacturer at the time of the 2007 ranking.

IBM remained in the top 5 at fifth place, slipping from its fourth place slot last year, while Toyota, which was in the top 5 last year at fifth place, dropped to No. 7 on this year’s list.

According to a report from AMR, Toyota “secured top place among peer voters but fell on a less-than-stellar ROA (5 per cent).”

According to the report, Toyota still handily beat Lockheed Martin (No. 23) and Johnson Controls (No. 23), the only other industrial corporations to make the 2008 cut.

The AMR Research Supply Chain Top 25 identifies companies that demonstrate leadership in applying demand-driven principles to their global supply chains.

AMR’s goal is to show how supply chain excellence contributes to economic value creation, and, in so doing, to raise awareness of the importance and influence of the profession.

“The Top 25 is an annual ranking that calls out those large manufacturers and retailers that display superior supply chain performance, capabilities, and leadership,” say AMR researchers Debra Hofman and Kevin O’Marah, who preside over the ranking.

“These are the companies that are furthest along in achieving the ideal of a highly coordinated, demand-driven network that delivers shareholder and community value.”

“The analysis takes basic public data as a foundation— return on assets, inventory turns and growth—and layers on top of it expert and peer assessments of the future leadership potential of each company.”

“Since 2003, the Supply Chain Top 25 portfolio of companies have outperformed the market, in 2007 time by a wide margin,” the researchers point out.

“The average total return of the Top 25 portfolio for 2007 is 17.89%, compared with returns of 6.43% for the Dow Jones Industrial Average (DJIA) and 3.53% for the S&P 500.”

“Clearly, this is a group of companies that excels, strongly weathering the ups and downs we’ve seen in the market this year.”

This year’s 25: