When the COVID-19 pandemic laid bare the flaws in global supply chains, chief supply chain officers (CSCOs) zeroed in on finding short-term solutions to structural and organizational weaknesses. Now, the time has come for addressing longer-term concerns.
According to a Gartner report, there are three main concerns supply chain leaders need to be aware of.
A changing global trade ecosystem
Organizations had already experienced increased uncertainty around tariffs and trade regulations last year. That’s why 57% of CEOs were planning to redevelop their supply chains to better adapt to this new environment. Now, in light of the pandemic, 21% of supply chain leaders believe their supply chain is highly resilient, with 55% expecting to achieve that state within two or three years.
Digital drivers of supply chain efficiency
This year will be a cash-sensitive one. However, in a recent Gartner survey, 39% of manufacturing businesses indicated that they had increased their technology investment beyond the levels budgeted before the pandemic. Supply chain leaders must make sure that any planned investment aligns with their CEOs’ critical priorities — growth, financial stability, cost management and risk management.
Structural shifts in the workforce
Although many organizations have frozen hiring since the pandemic began, most CEOs recognize that the structure of their workforce needs to change permanently. 40% of the CEOs surveyed pre-COVID were already substantially or completely changing their organizational structures.
While this concerns all parts of the business, it’s the responsibility of supply chain leaders to make sure that their organizational design is appropriate for an increasingly digitized world. This means upskilling existing supply chain staff as well as ensuring that new talent is motivated by the prospect of a robust career path.
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