Ferrari CEO Benedetto Vigna’s leadership highlights the danger of complacency in supply chains.When Benedetto Vigna was appointed CEO of Ferrari, the decision raised eyebrows across the automotive industry. Vigna, a technology executive with no automotive experience, took the reins of one of the world’s most prestigious car manufacturers. Despite the scepticism, Ferrari has achieved one of its most profitable seasons since its foundation in 1947 under Vigna’s leadership.
Benedetto’s perspective offers a lesson not only for the automotive sector but for supply chain management as well. His approach, shaped by a high-tech mindset, challenges the status quo in a traditional industry.
One of Benedetto’s key insights, shared during an interview with Wheels Magazine Australia, highlights the risk of complacency.
“When you feel too confident about the future, then you fail. You know what the biggest risk is to Ferrari? That since we were successful, we believe that we will always be successful,” he says.
This notion of complacency being a threat is familiar to those in the supply chain sector. According to Peter Jones, Managing Director and Founder of Prological Consulting, Vigna’s sentiment mirrors his own experience.
Peter says that Ferrari’s history of balancing profitability with brand value sets it apart.
Learning from other industries
Benedetto’s unconventional journey to Ferrari offers a broader lesson for the supply chain: the value of bringing fresh perspectives from other industries. His background in technology, rather than traditional automotive expertise, allowed him to apply principles of innovation and rapid adaptation to an industry, specifically Ferrari, rooted in legacy culture and practices. This is an advantage in a world where supply chains must constantly evolve.
Peter points out that Ferrari’s decision to appoint someone from outside the automotive industry was perceived as risky but ultimately has proven to be very successful.
“Ferrari went on the same sort of journey. They’ve had every expert in here, and to varying degrees, it’s not really delivered when evaluated against ambition” Peter says. “So, by bringing somebody smart with an alternate view, it added something new that they hadn’t seen before.”
“When you come from another industry, the pacing frequencies are much higher,” Benedetto says.
In the tech sector, change occurs at lightning speed, a mentality that can benefit traditional industries adapting to today’s rapid transformations. Supply chain operations, increasingly driven by technological advancements, face similar challenges.
From automation to facility design, every aspect is evolving. Yet, many organisations continue to operate at a traditional pace, risking obsolescence within a few years if they fail to adapt.
This high-frequency thinking is also evident in the integration of technologies like AI and machine learning into supply chain management. By anticipating and responding to changes in real-time, supply chains can maintain a competitive edge, much like Ferrari did by embracing a technology-driven leadership approach.
The cultural shift
While supply chain has gained strategic importance, organisational structures often lag. Senior supply chain professionals, though skilled, won’t always have the business acumen to influence board-level decisions rapidly. As Benedetto suggests, reassessment is vital.
Peter explains that regular maturity assessments are critical in maintaining a competitive edge. Prological Consulting specialises in conducting these assessments to evaluate a company’s current capabilities, benchmark them against best practices, and identify opportunities for improvement.
“By benchmarking key metrics and updating strategies every few years, businesses can stay competitive. We guide companies to develop work programs that close identified gaps, keeping their supply chain capabilities relevant and robust and progressive,” Peter says.
Ferrari’s transformation under Vigna’s leadership is not just about changing strategies, but about evolving the entire approach to performance and innovation. In a similar way, modern supply chains, especially in warehousing and logistics, must continuously adapt to stay competitive.
Just as Ferrari found that through rethinking its legacy culture and practices to remain a leader, supply chain managers must embrace new technologies, processes, and perspectives to maintain operational efficiency and profitability.
Benedetto likens a Ferrari to a symphony of finely tuned components. Similarly, supply chain excellence involves a balanced integration of strategy, design, automation, and execution. Organisations must find their unique combination of these elements to meet market needs.
For example, companies that balance digital innovation with practical logistics strategies often outperform those that focus solely on one aspect. The key is to ensure that technological advancements enhance rather than disrupt established processes.
Prological helps businesses strike this balance, ensuring that supply chain enhancements lead to sustainable improvements rather than isolated successes.
Leading, not following
Supply chain remains one of the last areas of business where substantial efficiency gains still exist. Yet, complacency is a threat, particularly in an environment where success today does not guarantee success tomorrow. As Peter emphasises, companies must stay agile, curious, and prepared to challenge yesterday’s practices.
Vigna’s lesson resonates; success can be the enemy when it fosters complacency. In today’s supply chain landscape, maintaining the drive to innovate is crucial to avoid becoming obsolete, as happened to former giants like Blackberry, Kodak and others who once were market leaders. The focus must be on sustaining a mindset of continuous improvement, especially when business is thriving.
“The businesses that will be successful are those that embrace risk and innovation, rather than resting on past achievements. Success isn’t about repeating what once worked, but about continuously evolving and staying ahead,” says Peter.
“In the next decade, we’ll have companies that are either have and have nots based on their supply chain capability and the have nots will struggle to compete.”
The supply chain sector must embrace a mindset that values adaptability and curiosity over tradition. As Ferrari’s experience shows, sometimes the bold decision to break from convention can yield the most rewarding results.
Prological’s approach to maturity assessments and strategic innovation helps businesses make these decisive moves, maintaining their competitive edge. Peter says “we call this creating advantage” for the company’s clients through supply chain. ν