**Global**: A recent Gartner study shows that only 29% of supply chain organisations are prepared for future challenges, with a significant divide in strategies between leaders and non-leaders. The report highlights the need for investment in technology and the development of critical competitive characteristics.
A recent study conducted by analyst firm Gartner has revealed that only 29 per cent of supply chain organisations possess the competitive characteristics necessary for future readiness. The findings underscore significant challenges facing companies as they navigate an evolving landscape influenced heavily by advancements in artificial intelligence (AI) and shifting trade policies.
The survey, which included responses from 579 Chief Supply Chain Officers (CSCOs) worldwide, sought to evaluate the preparedness of these organisations for future market conditions and their strategies to maintain competitiveness. Among the key competitive characteristics identified by Gartner were agility, resilience, regionalisation, integrated ecosystems, and a cohesive business strategy.
According to Pierfrancesco Manenti, VP Analyst at Gartner, leading supply chain companies share a common approach centred on developing at least three of these five critical characteristics. Manenti noted, “The leading companies have in common that they are preparing through well-considered long-term strategies, while non-leaders are more often focused on short-term priorities.” This insight suggests a clear divide in strategic approaches between those organisations that are setting the groundwork for sustainable growth and those that are reactive to immediate pressures.
The survey also highlighted a notable trend regarding technological investment. Many CSCOs have yet to embrace advanced technologies such as real-time visibility tools and digital supply chain twins, with intentions to implement these innovations within the next three to five years. “Most CSCOs have not yet invested in cutting-edge technologies… but plan to do so in the next three to five years,” Manenti added. Leading organisations view technology not merely as an expense but as a crucial component supporting their overall business strategies, contrasting with those organisations that invest in technology without a firm foundation of basic capabilities.
From the survey data, four distinct profiles of future readiness emerged, characterised by the CSCOs’ priorities and perceived drivers impacting supply chain performance over the forthcoming years.
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The Design profile focuses on business model innovation and seeks to simplify operations through product designs that facilitate standardisation and adaptability to variations. Companies adopting this profile aim to enhance efficiency and potential market success by refining their product offerings.
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The Durability profile emphasises sustainability and risk management, advocating for responsible sourcing and operational transparency. Firms within this category are intent on building robust supply chains that can navigate uncertainty while making positive contributions to their environmental footprint.
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The Deferment profile adopts a more conservative stance, opting for strategic pauses in investment. Companies here concentrate on operational excellence and budgetary control, typically characterised as ‘fast followers’ who wait to observe industry trends before committing resources.
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The Decision profile leverages technology and talent to address complexities within supply chains, prioritising capabilities such as AI, machine learning, and real-time analytics. Firms in this profile are focused on enhancing visibility and engaging employees in environments conducive to innovation.
Gartner’s findings suggest that although organisations across these profiles can achieve success, leaning towards the Design profile may yield greater outcomes. Manenti stated, “Although CSCOs can be successful in any of the four profiles… highlighting innovation capabilities in business models may well be the most fruitful option.” The data indicates a higher concentration of successful leaders within the Design profile, underlining the importance of making targeted investments that align with specific strategic aims.
As supply chains continue to grapple with rapid changes and increased complexity, the insights from Gartner’s study will likely serve as a crucial reference point for organisations seeking to refine their future readiness strategies.
Source: Noah Wire Services
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