49% of Organizations Lack Confidence in Future Manufacturing Strategy: Gartner

Nearly half of organizations lack confidence in their manufacturing strategy to deliver on business outcomes over the next three years, according to a survey from Gartner, Inc.

“CSCOs picture a near future of advanced automation where machines are involved in completing a majority of tasks, yet most operating models are not keeping pace to enable these strategic priorities,” says Simon Jacobson, VP analyst in Gartner’s Supply Chain practice. "Leadership wants to embrace future capabilities to increase competitiveness, yet 66% of survey respondents say integrating supply chain and manufacturing is the most significant challenge for the next three years. This uncomfortable reality should motivate leaders to take more aggressive action to reinvent their operations." 

Key takeaways:

·        Two-thirds of organizations are not pursuing the needed aggressive redesign of manufacturing operations to deliver on expectations for advanced automation, including the use of AI technologies and autonomous robots. 

·        Advanced automation that allows for minimal human oversight was ranked in the Top 3 manufacturing capabilities driving competitive advantage over the next three years. Additionally, respondents expected the amount of manufacturing tasks machines will complete to increase significantly over the same period.

·        Respondents reporting to the chief supply chain officer (CSCO) are 68% more likely to have stronger alignment, investment coordination, speed and agility, and integration with the supply chain than those reporting to the chief operating officer (COO).