British American Tobacco - BAT named in The Gartner Supply Chain Top 25 for 2020

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09 June 2020

BAT named in The Gartner Supply Chain Top 25 for 2020

BAT believes company transformation and focus on ESG has driven elevation to 21st position.

BAT has been recognised by Gartner in The Gartner Supply Chain Top 25 for 20201  ranking for the first time. The ranking identifies supply chain leaders and BAT has moved from outside the 25th position to 21st position in 2020. BAT believes this reflects the great progress in its supply chain maturity journey, its strong financial performance and the fact that ESG is front and centre of everything BAT does, particularly in relation to the company’s supply chain.

Alan Davy, BAT Group Operations Director, said:

“We are delighted to receive this recognition which I believe is confirmation of our efforts to deliver a world-class supply chain as part of our journey towards A Better Tomorrow. To us, it not only acknowledges the achievements of our colleagues who have succeeded in transforming our business, but also the partners, suppliers and communities we work alongside. 

“The supply chain integration and synchronisation steps taken over the last few years built greater Resilience and Agility. Furthermore, Sustainability is front and centre of everything we do - it sits at the heart of our supply chain, has driven many of the investment decisions we have made, and will be a key element of our plans for the future as we build on this success.”

In recent years, BAT has implemented a single ERP platform, has invested in building people’s capabilities, as well as increased automation of certain business processes.  Crucially, the quality of data the company now uses for decision making has been transformed. AI and Machine Learning based platforms have been used to improve how BAT’s transportation and logistics networks are managed. This has built additional resilience and much needed agility and has contributed to the way BAT continues to navigate the Covid-19 situation. Further improvements and efficiencies are planned for 2020 and beyond.

According to Gartner, “three key trends stand out this year for these leaders that are accelerating their capabilities, separating them further from the rest of the pack.”

Purpose-driven organisations

“Even before the pandemic occurred, supply chain teams at leading companies defined their work using the language of purpose. These companies recognize that solving the world’s largest problems only works through partnership with others in the broader community, as well as through their own radical transparency.”

Business model transformers

“One of the largest external forces impacting corporate supply chains is a dynamic competitive landscape that is driven by a combination of expanded customer expectations, new market entrants from existing industry ecosystems and the emergence of non-traditional competitors.” Further, “leading supply chains have positioned themselves as the disruptors to traditional business models, either through reinvention of their offerings and the ability to deliver them or by acquiring start-ups that offer the expertise and DNA necessary to compete in new and reinvented markets.”

Digital orchestrators

“Leading companies on the Supply Chain Top 25 are early, and frequent, adopters of digital technologies. More importantly, these investments enable business capabilities and outcomes that allow them to thrive in even the harshest economic conditions.”

The Gartner report states that:

"In our 16th edition of the Supply Chain Top 25, we have an impressive group of leaders with new lessons to share, including a diverse set of six new entrants.” It further mentions that, “with substantial portions of the economy closed due the COVID-19 pandemic, we are seeing unemployment and negative economic growth rates on a scale not seen since the early 20th century in some cases.” Further, “leaders need an agile, or adaptive, strategy that allows the supply chain organisation to sense and respond to changes in the business context as they happen.”

Regarding the Supply Chain Top 25 Methodology, Gartner states, “the ranking comprises two main components – business performance and opinion. Business performance, in the form of public financial and ESG data, provides a view into how companies have performed in the past. The opinion component offers an eye to future potential and reflects leadership in the supply chain community. These two components are combined into a total composite score. We derive a master list of companies from a combination of the Fortune Global 500 and the Forbes Global 2000. In an effort to maintain the list of companies evaluated at a manageable level, we apply a general annual revenue threshold of $12 billion.”

Gartner, “The Gartner Supply Chain Top 25 for 2020”, Mike Griswold et al, 19 May 2020

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