Supply Chain Organisations Ill-Prepared for Future – Gartner
Less than a third (29%) of supply chain organisations have developed at least three of the five key competitive characteristics needed to prepare for future challenges.
That's according to Gartner's Future of Supply Chain 2025 report, which contends these attributes will be crucial for Chief Supply Chain Officers (CSCOs) as they tackle emerging pressures, including demonstrating AI’s impact and adapting to shifting trade policies.
Gartner surveyed hundreds of supply chain practitioners across various industries and regions and identified five competitive characteristics that will define supply chain readiness:
- Agility: The ability to adapt quickly to changes and disruptions
- Resilience: Ensuring supply chain operations can withstand and recover from shocks
- Regionalisation: Reducing reliance on global supply chains by developing regional hubs
- Integrated ecosystems: Strengthening collaboration across supply chain partners
- Integrated enterprise strategy: Aligning supply chain goals with overall business strategy
The analysis categorised organisations that have already embedded at least three of these characteristics as “leaders”.
Investing in strategy before technology
According to Gartner, organisations leading in supply chain preparedness take a strategic, long-term approach rather than focusing on short-term fixes.
"Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities," explains Pierfrancesco Manenti, VP Analyst in Gartner’s Supply Chain practice.
Although these leading organisations have not yet widely adopted advanced technologies such as real-time visibility and digital supply chain twins, they plan to invest in them within the next three to five years.
Pierfrancesco explains that, while leaders view technology as a tool to enhance business strategy, non-leaders tend to prioritise technology investments before fully developing the necessary foundational capabilities.
The survey explored how companies are positioning themselves to remain competitive over the next five years. Respondents identified key external factors shaping supply chain performance, including economic shifts, regulatory changes and evolving consumer expectations.
Defining future readiness
Gartner’s research highlights four distinct approaches that organisations are taking to strengthen their supply chains.
Each profile prioritises different capabilities—business model innovation, sustainability, talent and technology—to enhance future resilience.
Design: Focuses on business model innovation to simplify operations and reduce complexity. Organisations in this category standardise product designs across variations, enabling streamlined operations and improved adaptability.
Durability: Prioritises sustainability and risk management, ensuring long-term resilience. These organisations emphasise sustainable sourcing and transparency, aiming to minimise environmental impact while strengthening supply chain stability.
Deferment: Takes a cautious approach, pausing investments strategically to focus on cost efficiency and operational excellence. This profile is common in industries facing stringent regulations or lower risk tolerance.
Decision: Uses technology and talent to navigate complexity. Organisations in this category invest in AI, machine learning and real-time analytics, fostering a culture of innovation and adaptability.
Driving supply chain leadership
Gartner’s findings suggest that, while any of these profiles can lead to success, organisations following the 'Design' approach may see the greatest benefits.
"While CSCOs can be successful aligning to any of the four profiles, the data suggests following the Design profile," adds Pierfrancesco.
"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."
Ultimately, the key takeaway for supply chain leaders is the importance of making focused investments aligned with their chosen strategy.
Organisations that commit to a clear, structured approach will be better positioned to handle the complexities of the future supply chain landscape.
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