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47% of Supply Chains Reduced Headcount Due to AI Impact

Supply chain leaders report headcount reduction is concentrated at the entry level.

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Nearly half of supply chains have reduced headcount by an average of 10.5% over the past two years, primarily due to the impact of AI, according to Gartner, Inc.

Additionally, 66% of supply chain leaders report headcount reduction is concentrated at the entry level, more than double the percentage reporting reduction at other levels in the supply chain workforce.

“AI is thinning the entry-level supply chain workforce faster than most chief supply chain officers (CSCOs) are redesigning the talent pipeline, creating a future capability gap that will actually weaken their organizations’ AI performance,” says Tess Frenzel, director analyst in Gartner’s Supply Chain practice.

Key takeaways:

 

·       Data found that high-performing supply chains, defined as the Top 25% based on AI integration, AI-enabled automation, and business outcomes, are responding by elevating entry-level roles.

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