The Characteristics and Profiles of Supply Chain Readiness
Less than a third (29 percent) of supply management organizations have developed at least three of five characteristics essential for future readiness, according to research by Gartner, the Stamford, Connecticut-based global business consultancy.
These characteristics — agility, resilience, regionalization, integrated ecosystems and integrated enterprise strategy — have been identified by Gartner as crucial for chief supply chain officers (CSCOs) as they navigate such challenges as artificial intelligence (AI) implementation and shifting trade policies.
The study, which surveyed 579 supply chain professionals across various industries and regions, classified organizations as “leaders” if they had already adopted at least three of the five characteristics, positioning them to tackle the top drivers of supply chain transformation.
Leaders and Non-Leaders
According to Pierfrancesco Manenti, research vice president at Gartner’s supply chain practice, leading organizations focus on long-term, deliberate strategies, whereas non-leaders prioritize short-term concerns.
“Most leaders have yet to invest in the most advanced technologies (for example, real-time visibility and digital supply chain twins), but plan to do so in the next three to five years,” Manenti said in a press release. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
Respondents chose the most significant drivers of supply chain performance in the next three to five years, with 74 percent identifying the ability to successfully leverage AI, highlighting the technology’s growing role in operational efficiency and decision-making.
Environmental, social and governance (ESG) regulations and trade policies were cited by 67 percent of respondents. Geopolitical turbulence (65 percent), data control (62 percent) and talent shortages (59 percent) rounded out the top five.
Supply Chain Readiness Profiles
The study categorized supply chain organizations into four profiles, based on their strategic priorities for future growth.
Design emphasizes business model innovation by standardizing simplified product designs across variations. This method improves efficiency and customizes products to meet customer needs through simplification and segmentation.
Durability emphasizes sustainability and risk management for long-term stability. They prioritize sustainable sourcing, transparency, and environmental impact reduction, enhancing resilience and benefiting broader ecosystems.
Deferment delays investments to focus on efficiency and cost-saving, following industry trends before innovating. This is typical in industries with regulatory constraints or low risk tolerance.
Decision uses technology and skilled professionals to manage complex environments. These companies focus on AI, machine learning and real-time data analytics for scenario planning and operational visibility. This approach supports adaptability and employee engagement.
The Case for the Design Profile
While organizations can succeed with any of the four profiles, Manenti said, Gartner’s analysis suggests the design model may be the most advantageous.
More leading organizations align with this approach due to its emphasis on business-model innovation. By committing to strategic investments that align with their chosen profiles, companies can strengthen their future readiness.
“Critically important is a commitment to making very focused investments aligned to their profile, something the leading organizations share,” Manenti said. Companies that adopt this disciplined approach — rather than making scattered or reactionary investments — are better positioned for sustained success, he added.
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