Walmart, Pepsico: 2 Top Supply Chain Management

What do the top supply chain management companies have in common? Is there a “secret sauce” that only the supply chain masters know? What is it that the largest companies know?

Walmart and PepsiCo are the companies with the best supply chain management, according to the latest report by Kantar-Retail Poweranking, a retail analytics firm in Norwalk, Connecticut. According to the company, over 550 manufacturer and retailer respondents participated in the annual study.

Top Supply Chain Management Best Practices

The Top Suppliers

Pepsico topped the list of companies with the best supply chains according to retailers, gaining nearly 43% approval for its 2021 performance. Retailers noted that the company had the best supply chain management because it loses very little product at the store level and is able to move product in and out of the warehouse at top speed.

One of PepsiCo’s top priorities is investing in digital tools and advanced technologies to create a more efficient, streamlined supply chain WMS solutions. Focuses include data integration to help the company better meet consumer demands and sophisticated data analytics to drive a more streamlined and cost-efficient chain.

PepsiCo recently revealed plans to become net water positive—replenish more water than it uses—by 2030. If successful, the company will be among the most water-efficient food or beverage manufacturers operating in high-risk watersheds.

PepsiCo is once again at the top of the list, followed by Coca-Cola and Procter & Gamble.

• Retailers said Coca-Cola has good communication and has superior handling of old stock while making sure new stock is replenished.
• For Procter & Gamble, the report says the company deals well with customer unpredictability.
• Rounding out the top five are Apple and Kraft Heinz who ranked 6th and 8th respectively in 2020.

The Top Retailers

Among retailers, Walmart again tops the list of superior supply chain partners. The report said that Walmart knows how to drive costs out of the systems to efficiently deliver products and ensure minimal damage in the process.

Walmart’s supply chain is often touted as one of the most effective in the world. In the past two years alone, Walmart has invested $11 billion in e-commerce, supply chain vendor relationships, and technology. The company launched Walmart+, which rivals Amazon Prime, implemented a range of new fulfillment options — such as touchless curbside pickups.

Target switched places with Kroger this year to take the #2 spot. Amazon and Costco continue in 4th and 5th place again. The report noted Kroger’s strong data accountability and strong reporting as well as Costco’s superior focus on forecasting, availability, lead times, and consistency.

In ranking retailers, the company focused on data-centric practices, supply chain management, branding, and treating retail as a service.

Top Supply Chain Management Practices

While there was no one consistent activity that all the top companies did equally well, it is clear that they all have something in common. These supply chain companies all use a warehouse management system (WMS).

Good WMS software is essential to your having the visibility to not lose product, to efficiently manage and turn stock, and to generate the data that will help you master all the other requirements of being an excellent supply chain partner.

How Things Changed … and Stayed the Same

Amid severe and ongoing supply chain risk reduction disruptions, top organizations were capable of juggling conflicting priorities to operate agile, robust, transparent, and ethical supply chains. Gartner’s Supply Chain Top 25 for 2021 celebrates companies whose supply chain strategies have shown them to be purpose-driven, disruptive, and early adopters of technology.

Frequently Asked Questions

How often is the Kantar-Retail supply chain ranking study conducted?

The Kantar-Retail Poweranking study is conducted annually. The study surveys over 550 manufacturer and retailer respondents each year to evaluate supply chain performance. This annual frequency allows companies to track their progress year-over-year and identify emerging trends in supply chain excellence across different industries.

What specific technologies do top supply chain companies invest in?

Leading supply chain companies prioritize digital tools, advanced data analytics, and warehouse management systems (WMS). PepsiCo focuses on data integration and sophisticated analytics to streamline operations and reduce costs. Walmart has invested $11 billion in e-commerce, supply chain technology, and digital fulfillment options like touchless curbside pickup over the past two years.

Why did Target move ahead of Kroger in the rankings?

The article indicates that Target switched places with Kroger to take the #2 retailer spot, but doesn’t specify the exact reasons for this change. However, the study evaluates retailers based on data-centric practices, supply chain management effectiveness, branding strength, and how well they treat retail as a service to determine rankings.

How do supply chain disruptions affect ranking criteria?

During severe supply chain disruptions, ranking criteria emphasize agility, robustness, transparency, and ethical operations. Top organizations must demonstrate their ability to juggle conflicting priorities while maintaining efficient operations. Companies that are purpose-driven, disruptive, and early adopters of technology tend to perform better during challenging periods according to industry analysts.

What makes warehouse management systems essential for supply chain success?

Warehouse management systems provide critical visibility to prevent product loss, enable efficient inventory management and stock turnover, and generate essential data for decision-making. All top-performing supply chain companies identified in the study use WMS technology. These systems help companies meet the fundamental requirements of being an excellent supply chain partner.