Nearly 72% of supply chain leaders have to revisit final approvals for network decisions at least once, contributing to delays, according to Gartner, Inc.
In fact, more than half say they revisited those decisions three or more times, leading to lower satisfaction in the final outcome.
“Most organizations plan for major disruptions, but it’s the day-to-day instability, or what we call turbulence, that steadily drives up costs, decreases service levels and forces leaders to regret their decisions,” says Vicky Forman, senior director analyst in Gartner’s Supply Chain practice. “The more successful investment outcomes incorporate the costs associated with chronic turbulence into the business case calculations from the start.”
Key takeaways:
· Respondents recently made a significant network investment decision and represented companies with annual revenue of at least $250 million across manufacturing, life sciences, retail, and technology sectors, spanning executive and senior operational roles.
· Traditionally, supply chain leaders focused on the one-time and ongoing costs of a network investment, without explicitly incorporating the variable costs associated with managing chronic turbulence.
“Revisiting a decision in itself shouldn’t be seen as a failure,” says Forman. “In a volatile environment, the ability to stop, reverse, and repurpose an investment can prevent larger losses. Organizations that treat network decisions as adaptable, rather than fixed, are better equipped to protect margins and respond to change.”
