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ORLANDO, Fla., June 6, 2022

Gartner Supply Chain Symposium/Xpo Americas: Day 1 Highlights

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

On Day 1 from the conference, we are highlighting the Opening Keynote on supply chain’s offset strategy, as well as sessions on smart manufacturing, creating a logistics sustainability roadmap and the threats and opportunities of e-commerce marketplaces. Be sure to check this page throughout the week for updates.

Key Announcements

Opening Keynote: Supply Chain’s Offset Strategy: Recalibrating Our Approach To The Great Acceleration

Presented by Ken Chadwick, VP Analyst, Gartner

Supply chains continue to operate in an environment where changes in markets, risk, social norms, technology, and climate are accelerating exponentially. The gap between the pace of change and the ability to respond to that change is growing. In his opening keynote, Ken Chadwick, VP Analyst at Gartner, explored how supply chain leaders can sense, shift and steer their strategies to get ahead of accelerating changes and disruptions.

Key Takeaways

  • “By applying offset strategies - changing competitive positioning by applying unconventional or untried approaches to leverage your strengths - you can accelerate successes that deliver a competitive advantage you deserve.”
  • "There are five challenges  that require strategies to offset accelerating change and avoid future disruptions:
    • Cognitive Overload
    • Evolving Customer Expectations
    • Technology Change
    • Supply Chain Cyber Risk
    • Energy Instability
  • “A successful customer offset strategy will create opportunities to develop different sourcing priorities and policies, building new relationships and networks to deliver value.”
  • “The biggest challenges facing supply chain leaders in the technology space is not necessarily the technology. It is embracing and adapting to the new technology, and envisioning new ways of doing business.”
  • "You cannot control if you get hit by a cyber-attack. But you can control the business decisions that dictate investments resulting in protection against cyberattacks if you see the attack coming, or how long you are down after an attack."

Why can’t we be friends? Shaping smart manufacturing strategy together

Presented by Simon Jacobson, VP Analyst, Gartner

Smart Manufacturing works when top-down driven corporate initiatives are embraced and executed from bottom-up. Corporate influences, misaligned objectives and funding models create schisms and put success at risk. In this session, Simon Jacobson, VP Analyst at Gartner, provided insights and practical examples to strike a harmonious balance between site and enterprise.

Key Takeaways

  • “Pandemic-driven technology acquisition has created a ‘tech boom’ in manufacturing operations. This is exposing misaligned objectives driven top down by the business, and the day-to-day operation and capabilities from sites.”
  • “Rules are being rewritten: Lean-based production systems are being modernized to deliver new guidance to leverage these investments in lockstep with manufacturing capabilities.”  
  • “The art of the possible has to be affordable. Current funding models are not agile enough to support the speed and scale of smart manufacturing.”  
  • “New tactics focused on creating incentives and funding models that limit risk are motivating site leaders to adopt and scale smart manufacturing.”  
  • “The frontline worker experience is being improved with better access to the tools and training to build digital acumen.”

It’s More Than Just Transportation: How to Create a Logistics Sustainability Roadmap

Presented by Susan Boylan, Senior Director Analyst, Gartner 

Sustainability has become a top priority for all organizations, and transportation is often the immediate focus for greenhouse gas emission reduction initiatives. In this session, Susan Boylan, Senior Director Analyst at Gartner, discussed how logistics leaders can implement a transportation sustainability program.

Key Takeaways

  • “Logistics sustainability is not the responsibility of logistics alone, but requires input from  all stakeholders - internal and external.”
  • “Climate action is critical and must accelerate, but supply chain leaders also need to recognize sustainable logistics is about more than climate change. Logistics can play an active role in many sustainable initiatives across ESG streams.”
  • “Sustainable initiatives will take considerable investment. Be prepared for trade-offs.”
  • “Whether you are outsourced or in-housed, it should still be a strategic priority for your logistics function to deploy a successful sustainability roadmap.” 
  • “Gartner research shows that 64% of logistics is outsourced – If you are part of the 64%, it is time to have discussions with your service providers on their capability to align with your sustainability strategy.” 
  • “Do not procrastinate when it comes to sustainability. There is no prize for second place in this race.”

Marketplaces: The Threats and Opportunities They Present to Online Trade

Presented by Tom Enright, VP Analyst, Gartner

Marketplaces account for the majority of B2B and B2C e-commerce transactions. While providing convenience to businesses across many industries, and consumers to purchase from increasingly wide product offerings, the relevance of existing online channels offered by individual companies is under threat. In this session, Tom Enright, VP Analyst at Gartner,  discussed the best strategies for this new online world order.

Key Takeaways

  • “Marketplaces account for 67% of global e-commerce sales, leaving just 33% of transactions taking place on companies’ own dedicated websites. The revenue gained from the top 100 global marketplaces grew by 18% in 2021 compared to 2020.”
  • “With 2 out of every 3 dollars of spend taking place on marketplaces, are individual companies fighting a losing battle in attempting to capture customers?”
  • “While many platforms may appear to be primarily B2C, these platforms also provide businesses with a means to reach more customers and market their services in new ways.”
  • “An increasing number of retailers, such as Costco, H&M, Kroger, Target and Walmart are setting up their own marketplaces to sell their and many other third-party brands.”
  • Gartner predicts that by 2023: 
    • At least 70% of the enterprise marketplaces launched will serve B2B transactions.
    • 30% of enterprise marketplaces will transition to a majority third-party seller model for better profitability.
    • Organizations that have operated enterprise marketplaces for more than one year will see at least 10% increase in net digital revenue.

About Gartner

Gartner, Inc. (NYSE: IT) delivers actionable, objective insight to executives and their teams. Our expert guidance and tools enable faster, smarter decisions and stronger performance on an organization’s mission critical priorities. To learn more, visit gartner.com.

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