As impact of the pandemic becomes a more distant memory, supply chain executives are reportedly losing the strategic ground they had gained with their C-suite colleagues during the crisis. Despite 88% of supply chain executives asserting that their organization’s supply chain plays a crucial role in enhancing customer experience, an equal percentage of C-suite executives view the supply chain function as a cost center. This perception gap underscores the need for a shift in how organizations view and invest in their supply chains.
Post-Pandemic Focus on Cost Management
The EY 2024 Supply Chain Survey reveals that 78% of supply chain leaders report their organization has reverted to focusing on supply chain cost management post-pandemic. This shift from pandemic-era strategies sees 28% citing cost reduction as one of the top three current priorities.
The Value of Cross-Collaboration
The research also highlights perception gaps around the value of cross-collaboration between supply chain and C-suite executives. About 39% of supply chain executives admit that one of the top challenges their organization currently faces is proving the value of cross-functional collaboration. This gap in perception could be a missed opportunity to help the C-suite better understand the impact of supply chain functions.
Digital Maturity and Modernization Efforts
While both C-suite and supply chain leaders identified modernization efforts as a top priority, there is a discrepancy in their expectations of when the supply chain will become mostly autonomous. Supply chain executives are more optimistic, with 39% anticipating this by 2030, compared to only 25% of C-suite leaders. Furthermore, about a quarter of the C-suite believe their organization’s digital connectivity with suppliers is limited, highlighting an underestimation of supply chain’s progress in digital maturity.
As the pandemic moves further into the past, it is vital for organizations to bridge the gap between supply chain executives and the C-suite perception to drive success. By recognizing the strategic importance of the supply chain and investing in cross-collaboration and digital modernization efforts, companies can transform their supply chain from a mere cost center to a crucial growth engine.
