The world´s supply chains are being tested in unprecedented ways by the COVID-19 crisis. While many are now focused on the post-lockdown recovery as markets start to reopen, others are positioning themselves for the future. New ways of working are being identified and innovations are being developed.
Given this environment, it pays to look toward the leading innovations from across the supply chain community. Since 2014, Gartner has run the Supply Chainnovator program as a means to celebrate, highlight and recognize innovative leaders from across industries, ensuring light is shed on the fantastic work these businesses do.
This year supply chain leaders showed a real willingness to share and build capability across the community, with 100 overall submissions received across six industry categories — Consumer Products, Retail, Industrial, High-Tech, Healthcare and Life Sciences. Submissions were diverse, ranging across a broad spectrum of initiatives including digital printing, supply chain automation, product serialization, digital twins and even a rethink of global innovation management. Three finalists have been identified for each of the six industry level awards and the winners will be announced via webinar at 10 a.m. on June 9, 2020.
Finalist 1: Hershey’s, for its segmentation strategy that showed how developing shared goals and metrics can dramatically change how different parts of the organization can work together more effectively to drive improved results.
Finalist 2: Johnson & Johnson, for its initiative to provide consumer-customized product preference at scale for the Listerine supply chain in Asia. With this new approach, J&J is meeting local demands in new and existing markets.
Finalist 3: Philip Morris International, for its initiative to develop digital printing technology. This shows how innovation can lead to significant competitive advantage, in this case by drastically reducing time to market, resulting in improved agility, flexibility and speed.
Finalist 1: Ralph Lauren, for its digital product IDs initiative that cost-effectively tags each individual item manufactured, making them identifiable for both business users and consumers. This provides benefits ranging from counterfeit mitigation to optimized product flow and increased consumer engagement.
Finalist 2: Tory Burch, for its state-of-the-art unified commerce distribution center. The initiative, enabled by advanced material handling equipment and supporting systems, has significantly cut cost to serve while delivering both faster delivery lead times and improved Net Promoter Scores.
Finalist 3: Woolworths Group, for its initiative to rethink the Australian standard pallet to two-thirds its traditional size. This has already delivered benefits including improved voice of the customer scores, reduced manual handling of products and improvements in operational efficiency.
Finalist 1: Intel, for an analytics initiative that enabled its supply chain to assess all of its supplier contracts with a projected savings of $19 million annually.
Finalist 2: Microsoft, for its digital transformation that empowered the supply chain planner as a co-creator of change and automated supply chain planning tasks, improving inventory availability, cutting costs and enabling planners to focus on higher-value activities.
Finalist 3: Western Digital, for its adaptive fulfilment model, which resulted in an increase in shipment reliability and consolidation, and a decrease in time in transit and overall costs.
Finalist 1: Shell Lubricants, for its digital tools that created a trusted data layer to uncover end-to-end business insights and improve decision making. The initiative resulted in positive contributions in 2019 to productivity, schedule adherence and a 1,000-hour reduction in manual conflict resolution across two plants.
Finalist 2: Siemens, for deploying predictive demand planning that enables forecasts on demand by selecting the best demand planning method automatically from statistical and machine learning algorithms, delivering $10 million in inventory optimization savings.
Finalist 3: SKF, for the digitalization of its supply chain by creating a digital twin to support an integrated supply chain planning process. This enabled SKF to move toward a much higher degree of automation and deliver nearly $9 million of inventory savings while utilizing 11% fewer planning resources.
Finalist 1: Cleveland Clinic, for its laundry plant cooperative initiative that demonstrated the role supply chain plays when investing for sustainable service and cost improvements in a core care delivery function.
Finalist 2: Rush University Medical Center, for developing a suture optimization initiative that achieved substantial savings while freeing up clinical staff to focus on their core mission.
Finalist 3: The University of Texas System, for its robotic process optimization journey that achieved cost savings while allowing employees to focus on higher value activities.
Finalist 1: Amgen, for its use of serialization to generate additional business value from a project initiated to ensure compliance with serialization regulations. Using capability created through the project, Amgen improved its returns process by reducing reimbursement pricing errors valued at an estimated $12 million per year.
Finalist 2: Ipsen, for its comprehensive supply chain transformation program that has reduced stockouts of its drugs by 50% and enabled 99.5% on-time delivery.
Finalist 3: Johnson & Johnson, for its Fast Track Ideas global idea management system used by its supply chain organization. In the first two years, the initiative to foster innovative ideas resulted in benefits including $16 million in inventory reduction, 76 safety catches and a reduction of plastics.
Senior Director, Analyst,
Gartner Supply Chain