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Conference Updates

October 27, 2021

Gartner Supply Chain Symposium/Xpo Americas: Day 3 Highlights

We are bringing you news and highlights from Gartner Supply Chain Symposium/Xpo, taking place this week virtually in the Americas. Below is a collection of the key announcements and insights coming out of the conference.

On Day 3 from the conference, we are highlighting sessions covering the sustainability challenges of same-day delivery,  discuss the future of quality management and supply chain planning, and resolve the dichotomy of logistics outsourcing. 

Make sure to also check out our session highlights from Day 1 and Day 2

Key Announcements

Kill Your Speed, Not The Planet. How Customers' Sustainability Concerns Are Pulling Up The Handbrake on Same-Day and Next-Day Deliveries

Presented by Tom Enright, VP Analyst, Gartner

In this session, Tom Enright, VP Analyst with the Gartner Supply Chain practice, discusses why companies should cut their funding of fast fulfillment and focus on carbon-reducing delivery options instead.

Key Takeaways

  • “The reality is that many organizations don’t either have a plan or recognition as to how much revenue they make from fast fulfillment services. The focus is on the provision of the service, rather than the usage.”

  • “If we do nothing, carbon emissions from urban delivery traffic will increase by 32% as recently as 2030.”

  • “Over the last couple of years, we’ve seen a strong emergence of  another element: How green, how sustainable are the fulfillment methods that the company that is selling something to me are adopting?”

  • "There’s been this perception over the last 4-5 years that if suppliers can get their product to customers quickly, that’s the most convenient thing in consumers’minds. It’s not. Convenience to consumers means that they can receive their order on the most agreeable terms to them."

  • “Just because a lot of people select a certain delivery speed, it doesn’t necessarily mean that this is what they really wanted. It might be the thing that they dislike the least. This can give the impression of huge popularity, but the most popular thing might not even be available.”

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Four Shifts in Quality Management Needed by 2025

Presented by Ankur Mehta, Director Advisory, Gartner

Accelerating digital transformations, changing business models, and expanding customer demands are causing quality and supply chain leaders to question how much longer their current approach to quality management will be effective. Ankur Mehta, Director Advisory with the Gartner Supply Chain practice, shares how the value, scope, governance and implementation of quality management will change by 2025.

Key Takeaways

  • “By 2025, quality management needs to be defined by four characteristics: predictive, connected, flexible and embedded. These are the four critical shifts we must make to be successful in the future.”

  • “To keep up with the expectations and help companies get high-quality products out of the door faster, the value of quality management will shift from solving known problems to predicting problems before they occur.”

  • “Quality can no longer just focus on the product, but has to take into account the product’s interaction with the ecosystem. Basically, quality can no longer be internally focused, as an expanded ecosystem exposes the organization to new risks.”

  •  “In the future, quality governance will evolve to a flexible, open-source governance model, optimized for speed and customization, keeping only critical parts of decision-making while giving control to the end user.”

  • “To align with the new needs of business and new ways of working, we can no longer rely on subject matter experts to own all quality tasks. Instead, quality will be democratized, relying on a broad set of employees to apply quality management skills as needed. ”

Supply Chain Planning Anno 2030: How Technology Will Revolutionize SCP

Presented by Pia Orup Lund, Director Analyst, Gartner

In this session, Pia Orup Lund, Director Analyst in the Gartner Supply Chain practice, explored how supply chain planning might look around a decade from now with strong technology support, and the path to get there.

Key Takeaways

  • "Technology will identify when a decision must be made, and it  will help us to screen the decisions. It will also help us to track the quality of decisions."

  • “Technology will allow us to use more data, to become more automated - even autonomous when the situation allows - and leverage our human intelligence for decisions that cannot just flow through automatically.”

  • “We will have fewer static cycles (quarterly, monthly, etc.) and move to a position where decisions can be made whenever, wherever they are needed: moving towards continuous decision making.”

  • “Supply chain planners will have to work differently. They will need to learn much more on how they can model the supply chain: the setups, the constraints, the dependencies; how they can model the business priorities: which customer is more important? Which products are more important?”

  • “This will also affect skills: the organizational setup will need to have even more network-oriented end-to-end (E2E) planners with a very good understanding of technologies and how they work.”

How to Resolve the Dichotomy of Logistics Outsourcing

Presented by David Gonzalez, VP Analyst, Gartner

With logistics outsourcing by shippers on the rise, David Gonzalez, VP Analyst with the Gartner Supply Chain practice, discusses why 3PL and shipper communities are often misaligned, and how they work more collaboratively to deliver mutual success.

Key Takeaways

  • “At the moment, the control of the logistics industry very much sits in the carrier or service provider area.”

  • “What logistics leaders are expected to do is to ensure that the technology they deploy to run their logistics function is indeed fit for purpose.”

  • “Cost optimization can no longer simply come from negotiating a rate reduction. Cost reduction has to come from the removal of waste -removing redundant processes, looking to automate more of the manual processes that have traditionally been undertaken by a lot of logistics functions.”

  • “We are facing a labor crisis in the logistics industry, and as much as technology can replace some of that labor,  it’s not going to replace the human element altogether from the logistics industry.”

  • “What we see emerging is the concept of supply chain as a service and how some 3PLs are trying to take the lead in developing that concept and incorporating all of the extended supply chain functions into one outsourcing value proposition.”

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