Gartner Highlights CSCO Offset Strategies
ensure future success and achieve competitive advantage, chief supply
chain officers (CSCOs) must prepare offset strategies for five key
challenges brought about by accelerating change.
In the opening keynote at the Gartner Supply Chain Symposium/Xpo, taking
place here through Wednesday,
Ken Chadwick, vice president analyst with the
Gartner Supply Chain practice identified the five focus areas
as: cognitive overload, customer experience, energy instability,
technology change and supply chain cyber risk.
“Offset strategies are a proven way to shift the competitive landscape
by applying unconventional or untried approaches to leverage individual
strengths,” said Chadwick. “If the offset strategy focuses on the most
critical matters of our time, supply chain leaders can reap immediate
interesting to hear Ken Chadwick at the Garter Supply Chain Symposium
this past week talking about offset strategies for supply chain
Scott Deutsch, President for EPG Americas.
“I found his take on the cognitive overload to be on target, after what
so many have been through these past two years as an excellent barometer
for businesses in general. Businesses and logistics people are still
catching their breath and the changing landscape about work from home,
the hybrid approach or the get back to the office or else approach is
going to be quite the challenge for businesses in the next 12 months as
they balance between customer satisfaction and worker satisfaction. I
will not be surprised if we see some interesting Harvard Business School
case studies result from many of these decisions.”
The five important challenges when designing an offset strategy
The pandemic, its resulting supply chain disruptions, and the shift to
remote and hybrid work models increased the complexity of work and
changed collaboration and decision-making which made many employees feel
overwhelmed. Instead of adding more complexity to the situation, supply
chain leaders should aim to simplify how work is done.
“We’ve seen great successes with constrained decision-making. This model
deliberately reduces the number of people involved in a decision and the
time people have to gather information and make the decision. CSCOs can
also outsource some decision-making to artificial intelligence,”
To offset rapidly evolving customer needs, supply chain leaders must
shift from a “Just in Time” mindset that primarily focuses on internal
cost and efficiency goals, to a “Just the Customer” mindset, focusing
externally on customer needs. This shift will provide supply chains the
opportunity to reposition its commercial contribution to the business to
one that delivers both optimization and drives business growth.
Disruptive events, such as the Texas ice storm in 2021, showed that
relying on a singular supply of energy can cause failure. Humanities’
need to consume energy is also having an impact on the environment. One
way for CSCOs to address this challenge is to enable distributed,
sustainable energy management, where the power demand of factories,
fleets and other parts of the value chain is supplied by a distributed
network consisting of renewables, micro grids and battery storage.
According to Gartner research, the biggest challenge facing supply chain
leaders in the technology space is not necessarily the technology
itself. It is embracing and adapting to new technologies and envisioning
new ways of doing business. That’s why CSCOs must be at the forefront of
change and inspire their employees to use and trust the next generation
Chain Cyber Risk
Gartner research has found that over 80% of companies experienced a
significant cyber security incident in the last two years. This
development is driven by connected technology networks and
cyber-physical systems, such as sensors and smart vehicles. Supply chain
leaders can react to this evolving risk by partnering with the chief
information security officer to build a cyber security framework.
“CSCOs cannot control if, or when, they get hit by a cyber-attack. What
they can control are their own decisions on investments and actions.
Supply chain leaders must realize that cybersecurity is not just an IT
issue. It includes making decisions on partners, conducting realistic
risk assessments and integrating a cybersecurity perspective into
everything they do,” Chadwick concluded.
that we do business is very different now than how it was before the
pandemic. With the shift to a work-from-home model came new cyber risks
we have to be aware of. Employees need ongoing education on how to stay
safe online, including the deployment of Multifactor authentication, the
use of private Wifi connections, and higher alertness towards threats
like phishing emails”, says
Rajeev Gupta, CPO at Cowbell Cyber.
“Additionally, every business, no matter the size, should have a
standalone cyber insurance policy as a safety net to fall into should a
cyber incident happen.”