Under pressure from the increasing frequency and magnitude of supply chain disruptions, supply chain managers (CSCOs) can take three particular actions to manage change at both the macro and micro level, According to a study by analyst firm Gartner Inc.
“There are many types of macro supply chain disruptions, including natural disasters, trade wars, political unrest, cybersecurity breaches and other events,” said Chris Poole, vice president of Gartner’s supply chain practice, in a statement. “In addition to managing these macro-disruptions, CSCOs must also pay close attention to micro-disruptions, such as new market entrants, emerging technologies, and internal organizational changes.”
In response to these growing threats, CSCOs can follow a strategy playbook with three broad approaches, the company said.
First, leaders need to understand their organization’s risk appetite and areas of exposure. The term “risk appetite” generally refers to the level of risk a company intentionally takes to achieve its strategic goals. This metric varies widely from company to company, but a 2022 Gartner survey of 273 board members found that 57% increased their risk appetite, even during times of disruption.
Second, CSCOs need to accelerate their company’s digital transformation efforts, which can be crucial tools to help mitigate disruption. For example, new technologies can improve supply chain agility by improving a company’s ability to detect and respond quickly to unforeseen changes in demand and supply.
And third, supply chain managers need to expand their partner ecosystem, striving to better connect the organization’s supply chain with its partners, customers, manufacturing sites, vehicles and others. machines, and other nodes to extend visibility to detect disturbances. “The larger the ecosystem, the greater the scope to detect changes and increase options moving forward,” Poole said.
To #GartnerSC Symposium, Gartner Analyst Chris Poole Says CSCOs Need to Take 3 Actions to Navigate the Ongoing Macro and Micro #disturbance. Read the press release to learn more: https://t.co/C8zbZSU4xl pic.twitter.com/bMdfXArj8B
— Gartner (@Gartner_inc) September 27, 2022