Technology expertise and leadership are moving into the supply chain function

Consider technology from day one
This massive wave of digitalisation in the supply chain field is not a new story, but has certainly peaked over the last 2-3 years with many companies taking not just steps, but leaps into the digital space.

Recently, I wrote how planning technology finally lives up to its 10-year promise to support agile and resilient supply chain processes. Many advanced technologies, from AI, machine learning and IoT to cloud computing and data availability, now offer exponential capabilities at a lower cost than ever before. And the major systems like Kinaxis, o9 or SAP IBP now enable real-time scenario planning – something we will see a lot more of in 2023 and 2024 with many companies still embarking on ambitious digital journeys.

However, the new supply chain technologies do not just change how companies use data or how they make informed decisions; they also fundamentally change processes, ways of working, roles and responsibilities and the entire operating model of how companies manage their supply chain. The result is that technology and supply chain are becoming interlinked in ways that we have never seen before as companies strive to build resilient digital supply networks through an interconnected flow of information. There simply is no clear demarcation line anymore, which leads me directly back to Gartner’s prediction that by 2025, more than 50% of supply chain organisations will likely have a technology leadership role reporting directly to the Chief Supply Chain Officer. Expectedly, this will only be the tip of the iceberg. On all levels of the supply chain organisation, changes in technology will lead to new roles, and many more young and experienced supply talents will work at the crossroads of business-driven, technology-enabled transformation.

Reconfiguring for the future
Of course, no one can predict the future. However, with the current revolution of supply chain technology that seem to reshape much of the core of how employees work, we can already begin to understand the shape of that change – and how ground-breaking it is for our whole profession. Here are four pieces of advice when thinking about digital supply chain transformation:

1. First, determine how supply chain technology can support your strategic goals, but remember that technology itself is not an end to aspire to; it is a tool for achieving other business and supply chain goals. New technology most often requires innovative approaches to training or business processes, and as I said before, extensive digital competencies need to be built and maintained within the supply chain organisation to overcome traditional cultural obstacles.
2. Second, craft a holistic plan to create a multidisciplinary, tech-savvy supply chain workforce. As agility and cross-functional skills become increasingly important, teams of all backgrounds may come together to solve the complex challenges that arise in a digital supply network, then dissolve and move on to address new challenges. Focus on finding talent with the right skills and mindset to work in this way.
3. Third, remember what makes humans human. While having the right technical skills is important for success, cultivating soft skills such as storytelling and communications, critical thinking, and knowledge of the customer’s personality and preferences, is equally important. These skills typically also enable people to share their technical expertise in a way that builds relationships and adds even more value.
4. Finally, re-examine your human capital strategy on your journey to a digital supply network. The hallmarks of supply chain should be flexibility and adaptability, so talent should be viewed in the same way. Considering how future talent needs may change is a core strategic discussion for the entire C-suite. Similarly, encouraging that same flexible and adaptable mindset in employees could help the entire organisation react quickly to new opportunities.

Going back to Gartner’s predictions, there is one place where I disagree. They predict that through 2023, less than 5% of control-tower-like deployments will fulfil their end-to-end potential due to mindset and cultural obstacles. There is no doubt that some companies will face difficulties, but many have come a very long way towards digital transformation, also when it comes to culture and mindset.

The next 10 years will surely see the rise of even higher levels of automation of supply chain planning. Many of our clients have already changed their entire mindset around technology, and they are seeing huge progress – and I think many more will follow soon.

¹ https://www.gartner.com/en/articles/gartner-predicts-the-future-of-supply-chain-technology