Many supply chain reorganizations suffer from at least one of three critical organizational design mistakes that can derail their efforts to achieve critical business outcomes, according to Gartner, Inc. Chief supply chain officers (CSCOs) who improve outcomes radically redesign their structure based on their distinct organizational needs, while prioritizing balance, strength and speed as key business objectives.
"Supply chain reorganization is high up on CSCOs’ agendas, yet many are unclear about how organization design outcomes link to business goals," says Alan O'Keeffe, senior director analyst in Gartner’s Supply Chain practice. "Our findings reveal that the leaders who achieved success took a more radical approach to redesigning their supply chain organizations, resulting in the ability to deliver on new and transformational operating models.”
Key Takeaways:
- The research was based in part on qualitative interviews conducted between February and June 2024 with supply chain leaders from organizations that had undergone organizational redesign. Insights were drawn from those who had successfully completed a radical reorganization, defined as a shift that enabled organizations to deliver on new activities and operating models that better met the needs of the business. Additionally, more than 1,200 inquiries with clients conducted between July 2022 and June 2024 informed the report.
- Gartner experts found that successful companies did not design similar organizational solutions. They assigned responsibilities to reporting lines in radically diverse ways. They focused on the unique characteristics of their business and networks to design organizations that were tailored to meet the unique needs of their organization.
