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Gartner Survey Shows Only 29% of Supply Chain Organizations Have Built Necessary Capabilities to Deliver on Future Performance

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Achievement of AI Capabilities and Navigating New Trade Policies Identified as Key Future Drivers of Influence on Supply Chain

Just 29% of supply chain organizations have developed at least three of the key five competitive characteristics needed for future readiness, according to a survey by Gartner, Inc. These characteristics will be needed for chief supply chain officers (CSCOs) to manage the future drivers of influence on the function, including proving their achievement capability of AI and navigating new trade policies.

Gartner surveyed 579 supply chain practitioners across industry and geography, July 31 through October 1, 2024. The competitive characteristics Gartner identified included:

  • Agility
  • Resilience
  • Regionalization
  • Integrated ecosystems
  • Integrated enterprise strategy

The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.

“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” said Pierfrancesco Manenti, VP Analyst in Gartner’s Supply Chain practice.

“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti said. “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.”

The Gartner survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive. As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three-to-five years (see Figure 1).

Figure 1: Achievement Capability of AI Tops Future Drivers of Supply Chain

Source: Gartner (February 2025)

Gartner’s analysis identified four unique profiles of supply chain organizations, determined by what their leaders deem the most crucial capabilities for empowering their organizations over the next three to five years. Each profile places an emphasis on key capabilities such as business model innovation, sustainability, talent and technology to deliver on future readiness.

These profiles include:

Design: Emphasizes business model innovation to reduce complexity, focusing on product designs that can be shared across variations. Organizations prioritize simplification, standardization, and differentiation based on customer and product segmentation to streamline operations and enhance future success.

Durability: Highlights sustainability and risk management as essential for long-term viability, focusing on sustainable sourcing and transparency in initiatives. By minimizing environmental impacts, these organizations build resilient supply chains that withstand uncertainties and contribute positively to their ecosystem.

Deferment: Adopts a cautious approach with strategic pauses in investments, focusing on operational excellence and cost containment. Organizations are fast followers, observing others before investing, common in industries where regulatory pressures and lower risk appetites influence strategies.

Decision: Leverages technology and talent to manage complexity, emphasizing AI, machine learning, and real-time data analytics. Organizations prioritize scenario planning and real-time visibility, fostering a culture where employees thrive in dynamic environments and support growth through innovation.

“While CSCOs can be successful aligning to any of the four profiles, the data suggests following the Design profile. 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,” said Manenti. “Critically important is a commitment to making very focused investments aligned to their profile, something the leading organizations share.”

 

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