Supply chain and procurement leaders can better address resource constraints by focusing on the immediate risks that threaten business viability, instead of on long-term challenges, according to new research from Gartner Inc.
The findings showed that leading supply chains motivate action by focusing stakeholders on urgent, tangible issues, rather than attempting to mitigate exposure to long-term constraints directly. Counterintuitively, this approach proves to be more effective in finding solutions to actually address long-term limitations.
Gartner experts presented research that identified three key barriers preventing supply chain leaders from taking sufficient action to address constrained resources. The conclusions came from a survey of 143 supply chain leaders completed in January 2024, and was presented this week during Gartner Supply Chain Symposium/Xpo in Barcelona, Spain.
The survey showed six top constraints being faced by supply chain leaders today: access to labor (55%), fixed/limited capacity (45%), excessive energy costs (43%), contribution to labor fatigue (41%), availability of raw materials (33%), and commitment to greenhouse gas emission reductions (23%).
The most effective way to gain stakeholder buy-in for action to cope with those problems is to highlight short-term, immediately apparent impacts to business viability, the research showed. That approach provides a basis for designing solutions that will also address long-term resource constraints that are set to be exacerbated by worsening climate change impacts in the years ahead.
“It’s difficult to motivate action on long-term constraints when leaders are focused on the clear and present dangers in front of them,” Laura Rainier, Senior Director Analyst, Gartner Supply Chain Practice, said in a release. “Rather than wait for a mandate that may never come, supply chain leaders can work with the short-term pressures facing the organization to design solutions today that will address both current and future constraints.”
The research named three categories of action where supply chain leaders should shift their strategies:
First, motivate action by de-prioritizing long-term constraints. Even established long-term strategies are likely to be de-prioritized in the event of supply chain disruptions. So in the near term, supply chain leaders should focus on obtaining investments and stakeholder buy-in that address the constraints their organizations are already facing.
Second, reprioritize long-term constraints to design solutions. Supply chain leaders can exert significant influence in product design, and thus ensure that both present and future constraints are considered as part of the design process. They should start with a focus on designing resource constraints out of new products, phasing in more sustainable and viable products for the future.
Third, leverage the marketplace to learn and innovate. Top supply chains innovate new solutions by creating opportunities to learn, and they rely on external partners—such as innovators, startups, and solution providers—to overcome technical and regulatory barriers.
