We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Digital business, trade uncertainty, sustainability will reshape supply chains

Digital business, trade uncertainty, sustainability will reshape supply chains

A supply chain evolution is changing the way chief supply chain officers will operate their organizations, Gartner analysts say.

Gartner details 3 trends shaping supply chains, CSCOs
October 9, 2020
DC Velocity Staff
No Comments

Three macro trends will impact the future of supply chains and, as a result, change the way chief supply chain officers (CSCOs) run their organizations, Gartner analysts said during a virtual symposium this week.

Digital business strategies, trade uncertainty, and sustainability efforts are increasingly impacting supply chain operations, according to Gartner, whose analysts presented new research on the topic during the Virtual Gartner Supply Chain Symposium/Xpo, EMEA (Europe, Middle East, and Africa), the company said Thursday. 

“CSCOs are tasked to design a supply chain organization that fits into this new era,” Mike Burkett, distinguished vice president analyst with the Gartner Supply Chain practice, said in a statement following the event. “While in the past, a good supply chain was efficient and powerful, it must now be agile and fast.”

Gartner said the three trends are affecting supply chains and CSCOs in important ways. First, the rise of digital business is putting pressure on CSCOs because supply chain operations shoulder most of the burden of a firm’s digital transformation efforts. 

“Given the critical role of supply chain in ensuring customer satisfaction and experience, much of the digitalization efforts will be on the shoulders of the CSCO,” Burkett said. “This is the greatest transformation of supply chain structures in a long time, and it will not be easy.”

Gartner research shows that the top barrier to a digital supply chain today is culture, followed by legacy technology, usable data, and legacy processes. As a result, the researchers say CSCOs must work with partners across the business to overcome those barriers and enable their firm’s digital business ambitions.

CSCOs are also challenged by new competitors and trade uncertainty. Almost half of CSCOs say they believe their business is at risk of being disrupted in the coming years, for instance, with the greatest risk coming from nontraditional businesses such as startups, according to Gartner. In addition, the impact of trade wars and the Covid-19 pandemic on supply chains has placed renewed emphasis on risk management and resiliency.

“The ongoing uncertainty calls for a new approach to supply chain management,” Burkett said. “CSCOs must build more flexible and resilient networks that can respond effectively to global shocks and disruptions–be it caused by nature or a competitor.”

Sustainability and the “circular economy” are also helping to reshape the role of the CSCO. Gartner defines the circular economy as “an economic model that separates the ability to achieve economic growth from the consumption of natural resources.” The supply chain plays a critical role in every part of the cycle: make, use, return, recycle, reuse. 

Pointing to their 2019 Gartner Future of Supply Chain Survey, the researchers said that 28% of organizations had already implemented circular design approaches in their innovation strategies and that 39% planned to do so within the next two years. This places new emphasis on processes such as reverse logistics.

“A supply chain that enables the circular economy has to have strong reverse logistics capabilities. The heavy equipment and machinery industries are already on a good path. However, this is a trend that no industry can miss out on–including consumer products,” Burkett said.

Gartner will present its Virtual Supply Chain Symposium/Xpo for the Americas November 3-5.

Supply Chain Services
KEYWORDS Gartner
  • Related Articles

    Digital supply chains, circular economies, and a whole bunch of uncertainty

    New service from Jabil will analyze the impact of changes in trade, tax, and tariff policies on a company's supply chain

    The Logistics Matters podcast: The pandemic spawns new sustainability standards; risk mitigation gets a fresh look; supply chains brace for a vaccine rollout | Season 1 Episode 23

  • Related Events

    DigiMarCon East 2021 - Digital Marketing, Media and Advertising Conference & Exhibition

Recent Articles by DC Velocity Staff

Report: Global TMS revenues to nearly double by 2025

E-commerce fulfillment squeezes retailers’ profit margins, Manhattan Associates says

Logistics-as-a-Service platform expands with $2.5 million funding round

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • IBM survey says digitalization trends will sweep trucking industry by 2030

  • Gartner survey signals increased investment in resilience over the next two years

  • What Level of Automation is Right for Your Warehouse?

  • Growing up … and up and up: interview with Sam Bertram

  • Old Dominion adds nine freight service centers to handle business growth

Now Playing on DCV-TV

D92f0dd1 a98c 434a 9e17 30b63ee72c90

Automated Pack-out and Print-Apply System for thredUP

DCV-TV 4: Viewer Contributed
SilMan Industries designed and implemented a mixed polybag-carton system, including automated print and apply, in a new regional Fulfillment Center for thredUP, one of the world’s largest online resale platforms for women’s and kids’ apparel, shoes, and accessories.The Situation Secondhand clothing and online...

FEATURED WHITE PAPERS

  • Using innovation to manage peak seasonal demand

  • Time to rethink your lift truck power

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing