60% of Supply Chain Digital Adoption Won't Deliver Value by 2028
No one wants to hear that investment in digital technology will not deliver what is promised. But recent research from Gartner, Inc. found that by 2028, 60% of supply chain digital adoption efforts will fail to deliver promised value due to insufficient investment in learning and development (L&D),.
To improve digital adoption outcomes, the firm says that chief supply chain officers (CSCOs) must take the lead in prioritizing strategic L&D initiatives, protecting and maintaining investment levels, and adopting agile methodologies to ensure effective skills development.
“In the current economic climate, CSCOs are under immense pressure to manage costs while striving for efficiency gains through new technology investments,” said Tom Enright, vice president analyst in Gartner's supply chain practice, in a statement. While technology promises long-term cost savings, the lack of investment in L&D jeopardizes these initiatives, as it is crucial to equip teams with the skills needed to leverage these new tools effectively.”
Gartner survey data of 579 supply chain practitioners completed in October 2024, focused on the future drivers of supply chain over the next three-to-five years showed that among supply chain leaders:
- 58% identified rapid tech advancement as a major future challenge
- 58% expected intensified talent competition to raise hiring costs
- 40% believed hyperautomation was evolving skills requirements
Additional Gartner research on generative AI (GenAI) deployments within supply chain showed that individual productivity gains enabled by the technology for desk-based workers have not translated into gains at the team level or for frontline workers.
This data indicates that L&D initiatives must be integrated into the technology investment process to ensure that full value is realized.
“High-performing learning environments are emerging as strategic differentiators,” said Enright. “Leaders in these enterprises embed L&D initiatives within their new technology investments and are therefore better able to shield these activities from short-term budget pressures.”
L&D Strategies for Successful Digital Adoption Outcomes
To overcome the barriers to successful digital adoption, CSCOs should consider the following strategies:
- Lead and invest in development: Supply chain leaders should spearhead L&D strategy, collaborating with HR to focus on skills, audiences, priorities, timing, and funding. This ensures investments gain traction with supply chain leaders and staff.
- Reframe L&D as an investment: Position L&D as a critical component of supply chain outcomes, emphasizing its role in amplifying the future value of data, technology, and productivity from AI investments.
- Consistent investment during technology deployment: Maintain steady investment in L&D to shift mindsets, skills, and behaviors. This includes courseware, dedicated roles for training design and deployment, and extended learning networks to foster a community of learning.
- Embrace agile methodologies: Implement agile learning tools and methodologies that allow supply chain staff to use natural language questions for real-time learning. This approach ensures skills development keeps pace with the demands of AI disruptions.
