Major retailers are being held back from essential supply chain transformation by outdated decision-making methods, according to the Deciding in the Dark report from Kallikor.
In fact, more than four in five significant strategic decisions encounter issues during delivery, and nearly nine in 10 leaders expect to deliver at least one step-change decision in the next 12 months.
"Supply chain leaders are being asked to make decisions of a different order to what came before, but the tools available to them have not kept pace. They were built for a simpler, more stable operating environment,” says Jonathan Barrett, CEO, Kallikor. “Leaders are being underserved by what exists, and our research shows the consequences of that gap are significant. Fewer than one in five major decisions are delivered as intended. That is not a leadership problem. It is a decision environment problem, and it is one that is entirely solvable."
Key takeaways:
· Leaders are often forced to choose between a simplified strategic view or a detailed operational view in isolation, with no practical way to evaluate both together.
- 63.5% say they are unable to evaluate decisions both end-to-end and in operational reality.
- 92% report unintended performance trade-offs emerging elsewhere in the system following major decisions.
- Fewer than one in five major decisions achieve their original objectives, with many requiring significant rework, being scaled back, or reversed entirely.
- Leaders also reported that decisions can take up to 18 months, with 74% admitting that slow decision-making reduces willingness to pursue bold change.
- 90% of leaders report concerns about reputational risk and this is having a direct impact on progress, as 60% rank personal or reputational risk itself among the top barriers to making major decisions.
