With multiple disruptions from ongoing technological advancements, generational shifts in global trade, and growing economic uncertainties, Chief supply chain officers (CSCOs) should focus on three high-impact strategies, according to Gartner, Inc.
The strategic actions for CSCOs to prioritize to deliver value include:
- Navigate risk and uncertainty by investing aggressively in advanced visibility and building an iterative scenario planning capability
- Orchestrate dynamic supply chain outcomes through diversifying networks and taking ownership of commercial outcomes
- Accelerate innovation by matching ambitions with capabilities, while enabling and inspiring their teams to lead the transition
“Supply chain is viewed today as both a top risk and opportunity among CEOs,” said Ken Chadwich, distinguished vice president, advisory, in Gartner's supply chain practice, in a statement. “Supply chain can be a positive catalyst for growth if CSCOs match their ambitions with focused investments in areas including tech adoption, commercial innovation and developing the most critical capabilities that are yet unrealized within their own teams.”
Navigate Risk and Uncertainty
Chadwick highlighted gaps in core supply chain capabilities where CSCOs recognize the importance of the capability but have yet to match their ambitions with full execution.
While advanced data visibility is consistently recognized as an aspirational capability, according to a December 2024 survey of 506 supply chain leaders, it was prioritized last among supply chain technology investment priorities. Similarly, supply chain leaders consistently rate scenario planning as a high-value activity, yet few organizations have fully integrated the practice as part their overall strategy.
“Advanced visibility and the foresight gained from scenario planning can equip the supply chain function to be the driving force to navigate risk and uncertainty,” said Chadwick. “Unfortunately, many CSCOs let obstacles such as an incomplete tech stack or data issues prevent them from making any progress. Instead, they should identify high-impact use cases and the most pressing risks and start to generate insights from what they do have in place today.”
Orchestrate Dynamic Supply Chain Outcomes
Scenario planning is also central to orchestrating dynamic supply chain outcomes by helping CSCOs to double down on network design flexibility and to model new options to deliver the capacity to help their CEOs drive growth.
Chadwick also emphasized the importance of CSCOs in taking ownership of commercial leadership outcomes. This means pushing beyond short-term considerations on cost and portfolio optimization to deliver analytics-driven insights to support new products and product designs and identify unique delivery methods and platforms.
Accelerate Innovation
Gartner’s December survey of 506 supply chain leaders also revealed that innovation has declined as a key motivator for technology investments at a time when growth, cost and efficiency have gained prominence. A lack of focus on innovation may compound concerns around data from Gartner’s survey of 456 CEOs completed in November 2024, with 71% stating their current operating models are not fit for AI purposes.
To accelerate innovation and drive value from technologies such as AI, Chadwick recommended that organizations identify their investment profile based on factors such as risk tolerance, regulatory obligations and culture. Investing within a defined profile helps organizations to choose the right investments at the appropriate stage of maturity. Innovation is driven by making a diverse range of tactical and transformative bets, while also investing in dedicated adoption efforts.
“The best organizations at digital adoption encourage their teams to see newly introduced technologies as part of an ongoing transition, rather than an isolated change,” said Chadwick. “Supply chain digital leaders are more likely to organize around new technologies, adopt digital centers of excellence and leverage change leaders and strategic change management experts.”
