Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     

GARTNER, INC.

(IT)
  Report
Delayed Nyse  -  04:05 2022-09-26 pm EDT
274.75 USD   -0.47%
09/23Gartner Finance Survey Shows 55% of Functions Aiming for a Touchless Close by 2025
AQ
09/22Fortinet Named a Leader in the 2022 Gartner« Magic Quadrant(TM) for SD-WAN for Third Consecutive Year
AQ
09/21Gartner Says General Counsel Are Not Delivering on Director Management Activities
AQ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Gartner Survey Reveals 51% of Supply Chain Leaders Increased the Number of Network Locations in the Past Two Years

08/04/2022 | 05:21am EDT

Hybrid regional model with local and regional elements embedded in global networks emerges as most popular option.

In total, 95% of survey respondents are evaluating or executing changes to their China sourcing and manufacturing strategy, and 55% of those already acted on their plans.

Forty percent of respondents see APAC not only as a supply base, but as an end market.

According to a Gartner, Inc. survey among 403 supply chain leaders in the second quarter of 2022, 74% of supply chain leaders made changes to size and number of locations in their supply chain network in the past two years. Fifty-one percent of respondents said they increased the number of locations (see Figure 1).

As constraints, inflation, sustainability goals and national industrial policies put global supply chains under pressure, chief supply chain officers (CSCOs) are adapting their networks to fit this new environment.

'There's clearly a supply chain redesign underway, but not everyone is moving in the same direction or even to the same extent,' said Kamala Raman, VP with the Gartner Supply Chain practice. 'Supply chain leaders have been modifying networks in a number of ways, be it with expansions, consolidations or simply modifications to buffers - which are more reversible than footprint decisions.'

Figure 1: Changes to Supply Chain Network Locations in the Last Two Years

Source: Gartner (August 2022)

The resulting networks span a variety of operating models. Twenty-eight percent of respondents now describe their network as a hybrid regional model - a combination of local or regional elements in a global supply chain network. This is closely followed by global models with regional final assembly (23%) and local-for-local networks (22%).

'While the range of scales and approaches is wide, supply chains are undoubtedly on the move. Over half of participating organizations report making changes to manufacturing and supplier networks supporting at least 20% of revenue,' Raman added.

China and Asia Remain Valued As Both Supply Bases and End Markets

In supply chains with a presence in China, change is afoot as well. In total, 95% of survey respondents are evaluating or executing changes to their China sourcing and manufacturing strategy, and 55% of those already acted on their plans.

However, the survey data does not show strong signs of large-scale nearshoring to developed markets. Supply chain organizations are examining A China Plus One approach that leaves most of the China-based network intact and places net new additions in other markets, or a diversification strategy that still holds significant sourcing or manufacturing in China.

As a result of the diversification away from China many countries in the rest of Asia are profiting from net new foreign direct investment. There are also regionalized Asian networks emerging which are driven by coordinated industrial policies, such as the Regional Comprehensive Economic Partnership (RCEP) or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade deals. Of APAC respondents to the survey, 60% see their home region not only as a supply base but as an end market. Globally, 40% of respondents consider APAC a supply base and an end market.

'The signs are clear that in a fragmented world, global firms have been making changes to their heavily cost-optimized, one-size-fits-all networks, and now favor a mix of global, regional or local elements. Investments into other parts of Asia - outside of China - coexist with expanded investments into developed markets as organizations take advantage of generous national/trade-bloc-level trade incentives,' Raman concluded.

Gartner clients can find more information in 'Cost, Resilience and Sustainability Are Key Themes in the Regionalization of Global Supply Chains'.

About Gartner Supply Chain Symposium/Xpo

Gartner experts will provide additional insights on key issues facing supply chain leaders during Gartner Supply Chain Symposium, taking place September 27-29 in London. Gartner Supply Chain Symposium/Xpo delivers the must-have insights, strategies and frameworks for CSCOs and supply chain leaders to drive impact within their organizations. Supply chain leaders will gather to gain a strategic view of the trends disrupting their business and the insights and frameworks they can use to prepare for disruption, enable digital transformation and build sustainability as a competitive advantage.

About the Gartner Supply Chain Practice

The Gartner Supply Chain Practice provides actionable, objective insights for supply chain leaders and their teams, so they can respond to disruption and innovate for the future through leading-edge supply chain management practices. Additional information is available at https://www.gartner.com/en/supply-chain. Follow news and updates from the Gartner Supply Chain Practice on Twitter and LinkedIn using #GartnerSC. Visit the Supply Chain Newsroom for more information and insights.

Media Contacts

Barbara Ruane

Gartner

barbara.ruane@gartner.com

(C) 2022 Electronic News Publishing, source ENP Newswire

All news about GARTNER, INC.
09/23Gartner Finance Survey Shows 55% of Functions Aiming for a Touchless Close by 2025
AQ
09/22Fortinet Named a Leader in the 2022 Gartner« Magic Quadrant(TM) for SD-WAN for Third Co..
AQ
09/21Gartner Says General Counsel Are Not Delivering on Director Management Activities
AQ
09/20Schneider Electric Ranks #1 For Thir : Europe Top 15
AQ
09/19Gartner : Should You Rely On Your Cloud Provider For Business Continuity?
PU
09/19Gartner Survey Reveals Talent is Top Challenge Facing CFOs Through 2023
AQ
09/19Gartner Survey Shows 49% of HR Leaders Named Innovating For Success As One Of Their Top..
AQ
09/16Gartner Reimaginehr Conference, Lond : Day 2 Highlights
PU
09/15Gartner HR Research Finds Just 25% of Employees Are Confident About Their Career at The..
AQ
09/15Gartner Survey Reveals Marketing Analytics are Only Influencing 53% of Decisions
AQ
More news
Analyst Recommendations on GARTNER, INC.
More recommendations
Financials (USD)
Sales 2022 5 389 M - -
Net income 2022 648 M - -
Net Debt 2022 1 730 M - -
P/E ratio 2022 34,5x
Yield 2022 -
Capitalization 21 835 M 21 835 M -
EV / Sales 2022 4,37x
EV / Sales 2023 3,89x
Nbr of Employees 16 600
Free-Float 46,9%
Chart GARTNER, INC.
Duration : Period :
Gartner, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GARTNER, INC.
Short TermMid-TermLong Term
TrendsBearishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 9
Last Close Price 276,06 $
Average target price 327,75 $
Spread / Average Target 18,7%
EPS Revisions
Managers and Directors
Eugene A. Hall Chief Executive Officer & Director
Craig Warren Safian Chief Financial Officer & Executive Vice President
James C. Smith Director
Michael Diliberto Chief Information Officer & Executive VP
William Otto Grabe Independent Director
Sector and Competitors
1st jan.Capi. (M$)
GARTNER, INC.-17.43%21 835
ACCENTURE PLC-37.29%164 450
TATA CONSULTANCY SERVICES LTD.-20.23%134 505
AUTOMATIC DATA PROCESSING, INC.-6.61%95 633
INFOSYS LIMITED-27.67%70 603
SNOWFLAKE INC.-49.19%55 064