Chief supply chain officers (CSCOs) must expand their focus beyond cost management or else accept a relegated role within the enterprise, according to the latest analysis by Gartner Inc.
In remarks at the firm’s Gartner Supply Chain Symposium/Xpo this week, experts said that to retain influence and control of their strategic objectives, CSCOs must focus on initiatives that can deliver multiple sources of value and align with their CEOs’ growth agendas.
“Stakeholders perceive that the worst of the supply chain crisis has receded, and CSCOs now face the prospect of being allocated fewer resources with the expectation of returning to a role more confined within the enterprise,” Tom Enright, VP Analyst in Gartner’s Supply Chain practice, said in a release. “CSCOs’ own priorities centered on cost management may be contributing to a loss of influence, as their CEOs remain steadfastly focused this year on driving growth.”
So for the supply chain function to retain influence in a “post-crisis” state, CSCOs must deliver multi-value contributions where their investments create maximum impact across key priorities that include growth, resilience, sustainability, risk reduction, and other priorities, while also addressing cost, he said.
“While the supply chain function is most often delegated cost management responsibilities, it is indispensable for delivering other important forms of value,” said Enright. “It is up to supply chain leaders to identify and prioritize those investments that will deliver simultaneous sources of value, in line with their team’s strengths and stated priorities.”
