What organizations strategies and skills will be required to succeed in the supply chain of the (near) future?
The analysts at Gartner are out with a new report on this topic, based on a major survey of supply chain executives.
Supply Chain Digest Says... |
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| Each profile prioritizes different capabilities - business model innovation, sustainability, talent and technology - to enhance future resilience. |
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From that and other research Gartner identified five competitive characteristics that will define supply chain readiness in the future world:
Agility: The ability to adapt quickly to changes and disruptions
Resilience: Ensuring supply chain operations can withstand and recover from shocks
Regionalization: Reducing reliance on global supply chains by developing regional hubs
Integrated ecosystems: Strengthening collaboration across supply chain partners
Integrated enterprise strategy: Aligning supply chain goals with overall business strategy
While these seem like common sense observations, and one might guess that many companies have embraced these strategies, not so says Gartner. Its research found that less than one-third (29%) of supply chain organizations have developed at least three of the five key competitive characteristics.
Those that have embraced just three of the five are characterized as supply chain leaders, according to Gartner.
There are other difference between supply chain leaders and laggards, the Gartner report finds.
"Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities," says Pierfrancesco Manenti, VP Analyst in Gartner’s supply chain practice.
And although these leading organizations have not yet widely adopted advanced technologies such as real-time visibility and digital supply chain twins, they plan to invest in them within the next three to five years, Gartner adds.
Segmenting Companies by Supply Chain Strategies
Gartner’s research identifies four distinct approaches that companies are taking to drive their supply chains.
Each profile prioritizes different capabilities - business model innovation, sustainability, talent and technology - to enhance future resilience.
(See More Below)
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CATEGORY SPONSOR: SOFTEON |
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 Each profile prioritizes different capabilities - business model innovation, sustainability, talent and technology - to enhance future resilience.
1. Design: Focuses on business model innovation to simplify operations and reduce complexity. Organizations in this category standardize product designs across variations, enabling streamlined operations and improved adaptability.
2. Durability: Prioritizes sustainability and risk management, ensuring long-term resilience. These organizations emphasize sustainable sourcing and transparency, aiming to minimize environmental impact while strengthening supply chain stability.
3. Deferment: Takes a cautious approach, pausing investments strategically to focus on cost efficiency and operational excellence. This profile is common in industries facing stringent regulations or lower risk tolerance.
4. Decision: Uses technology and talent to navigate complexity. Organisations in this category invest in AI, machine learning and real-time analytics, fostering a culture of innovation and adaptability.
Gartner’s research finds that, while any of these approaches can lead to success, organizations embracing the “Design” approach may achieve the greatest benefits.
While CSCOs can be successful aligning to any of the four profiles, the data suggests following the Design profile," adds Pierfrancesco.
"Its emphasis on business model innovation capabilities could be the most fruitful, as there are more leaders aligned with the Design profile compared to the others."
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