For more than 25 years, industry thought leaders have argued that it is crucial to view your supply chain as a source of growth and competitive advantage. A recent survey by Wakefield Research, however, shows that 30% of C-levels executives in the United States still view the supply chain as a cost center.
Conducted on behalf of supply chain execution software provider LeanDNA, the survey of 100 C-level executives and 100 supply chain leaders shows a disconnect between the two over the value of the supply chain. To be sure, a majority of both groups view the supply chain as a growth driver: 85% of supply chain leaders and 70% of the C-suite. However, LeanDNA believes the 15-point gap suggests that supply chain may not be getting the level of attention and investment that supply chain leaders believe it deserves.
Indeed, 94% of supply chain leaders and 85% of C-level executives either strongly agree or somewhat agree with the following statement: “Leadership is skeptical of the link between supply chain resiliency and business growth.” (See above table.)
“We see an opportunity for supply chain to be the biggest untapped lever for business growth. The friction between the C-suite and supply chain leaders is holding the entire organization from being as successful as possible and tackling larger opportunities,” said Andy Ellenthal, CEO of LeanDNA in a statement.
This friction may be in part due to a communication gap, according to the survey results. The survey found that 99% of executives and 100% of supply chain leaders believe that supply chain leaders struggle to communicate the value they bring to the company. Survey results also show that 55% of executives and 61% of supply chain leaders believed the responsibility for bridging that gap lies more with supply chain leaders than chief executives.
Tariffs: Mix of Threats and Benefits
The survey also produced some interesting insights into respondents’ outlook on tariffs. In spite of the polarizing dialogue around the trade policies, the majority of respondents—both executives and supply chain leaders—viewed tariffs as a mixed bag, presenting both challenges and opportunities. The survey found that 75% of supply chain leaders and 60% of chief executives believed that tariffs will present some combination of threat and opportunity. Interestingly, executives are far more like to believe tariffs are entirely an opportunity (31%) than supply chain leaders (18%). The survey was conducted between Feb. 3 and Feb. 11, after Trump imposed a 30-day pause on tariffs on Canada and Mexico and before they were reinstated on March 4 (and then paused again for those products that comply with the U.S.-Mexico-Canada Agreement).
