Chief supply chain officers (CSCOs) can adapt capabilities of nontraditional competitors to be better equipped to fit the needs of modern customers and support new business models, according to new research by Gartner.
Create an Agile Supply Chain
An agile supply chain organisation makes use of self-forming teams and data-driven decision-making to become more responsive. By embracing less hierarchical organising and leadership models, companies are able to engage more of their talent to develop new ideas across operations, products and customer service.
Align the Operating Model to New Business Models
An advantage that nontraditional competitors frequently have over established companies is that they don’t follow the established supply chain conventions. These new competitors — especially emerging startups — often solely focus on achieving innovation as their business goal, instead of having to achieving the performance metrics that management and markets expect from established companies.
“Many supply chain executives operate separate supply chain segments within their global networks to support emerging new products. Those segments rely on third-party contract manufacturers and use different distribution channels than the traditional supply chain. This combination of conventional and innovative supply chain segments is a recipe for success for traditional organizations,” Pierfranceso concluded.