Disconnect Between C-Suite and Supply Chain Leaders

Not everyone is seeing eye to eye with regard to supply chain strategy. A new survey from LeanDNA of 100 C-level U.S. executives and 100 U.S. supply chain leaders, found there are differing perspectives on the value and priorities of supply chain functions.

While a majority in both groups recognize supply chain as a growth driver, supply chain leaders overwhelmingly see themselves as such (85%) compared to C-level executives (70%). This 15-point gap suggests a potential misalignment in investment prioritization and the level of attention supply chain leaders receive from top leadership.

A striking 99% of executives and 100% of supply chain leaders acknowledge that supply chain leaders struggle to articulate the value they bring to the company. Moreover, 55% of executives and 61% of supply chain leaders believe the onus is on the supply chain side to improve communication.

“Even as many companies rely on smooth supply-chain operations to keep their company going, and as most executives acknowledge supply chains as growth drivers, there’s still a disconnect in linking those concepts,” said Andy Ellenthal, CEO of LeanDNA, in a statement. “For 85% of C-Level executives and 94% of supply-chain leaders, their company’s top leadership is still skeptical of the link between supply-chain resiliency and business growth. That lack of effective communication from the supply chain probably isn’t helping.”

Despite this gap, nearly half (46%) of C-level executives expect supply chain operations to increase in visibility within the C-suite over the next 12 months, with planned increases in staffing (41%) and investments (38%).

Areas of Disagreement: Risk Prioritization

Executives and supply chain leaders differ in their prioritization of risks associated with delaying operational innovations. Executives are most concerned with increased production disruptions (53%) and slower response to market fluctuations (43%), while supply chain leaders prioritize higher inventory costs, reputational damage, and lost revenue (53% each), as well as regulatory compliance risks (50%).

Supply chain leaders’ top concerns include balancing sustainability goals (41%), handling compliance and regulatory changes (41%), and reducing costs without compromising delivery performance (37%). Executives, on the other hand, are most worried about managing disruptions from material shortages or delays (38%) and balancing sustainability with operational efficiency (37%).