Gartner, Inc. forecasts a troubling outlook for supply chain digital adoption, predicting that by 2028, around 60% of initiatives will fail to deliver the promised value. The underlying cause of this anticipated failure is insufficient investment in learning and development (L&D). As companies grapple with rising operational costs and strive for efficiency through technology, the emphasis on equipping personnel with the necessary skills to utilise these tools effectively is often overlooked.
Tom Enright, a VP analyst in Gartner’s supply chain practice, emphasised the current pressures faced by Chief Supply Chain Officers (CSCOs), who are torn between the need for technology investment and the escalating demand for efficient cost management. He noted that while technology has the potential to yield long-term savings, without a concurrent focus on L&D, these initiatives may falter.
The challenges highlighted by Gartner are echoed in a broader industry context. In another report, the firm indicated that 95% of companies are expected to struggle with achieving end-to-end resiliency within their supply chains by 2026. This inadequacy is largely attributed to a failure to transition from traditional forecast-driven models to more flexible strategies that embrace uncertainty. Such a paradigm shift is essential for building resilience and aligning technological investments with these strategic goals.
Moreover, Gartner has highlighted the extent of the digital gap in supply chains, revealing that approximately 80% of the environment is not represented in current digital decision models. This significant ‘digital-to-reality gap’ inhibits the effectiveness of various decision-making tools, including scenario modelling, which are vital for informed management in dynamic and fluctuating markets. Bridging this gap necessitates not just technological investments but also enhanced decision support mechanisms that empower local and cross-functional teams to act effectively.
Productivity in supply chains has been further compromised, as identified in separate research, which states that even innovative technologies like AI and smart robotics cannot rectify declining productivity trends without a comprehensive strategy that includes workforce engagement. Data from Gartner’s Global Labor Market Survey indicates that only a quarter of the supply chain workforce is fully engaged, coupled with a turnover rate that exceeds pre-pandemic levels by 33%. As organisations introduce new technologies, fostering an engaged and skilled workforce becomes critical to unlocking their full potential.
The urgency for skills development is underscored by a recent Gartner survey, which found that a staggering 85% of business leaders foresee an increase in learning requirements attributable to advancements in AI and digital transformation over the next three years. Nearly all respondents expressed the belief that it is their responsibility to facilitate continuous learning and ensure that the workforce is adequately prepared to adapt to evolving demands.
To tackle these multifaceted challenges, Gartner points to four human economic drivers pivotal for revitalising supply chain productivity: thoughtful work design, development of digital capabilities, network-driven growth, and robust talent management. High-performing organisations stand out by investing in L&D programmes that enhance data literacy—an essential competency in navigating today’s complex supply chain landscapes. By fostering an environment centred on continuous learning and proactive knowledge management, companies can significantly improve their operational efficiency and responsiveness.
In summary, the convergence of rapid technological advancement, escalating talent competition, and changing skill requirements signifies that merely investing in new technologies is insufficient. For supply chain transformations to fulfil their potential, a holistic approach encompassing L&D and strategic talent management is indispensable.
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Source: Noah Wire Services
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