Despite prolonged production and shipping delays spurred by the pandemic, global supply chain growth opportunities are challenging for 2023 and beyond, particularly in warehousing and fulfillment, enterprise supply chain management and last-mile delivery. Evolving consumer expectations for free and fast delivery, new opportunities to scale with innovations in supply-chain-as-a-service (SCaaS), and a doubling down by investors for more transparency and ethical consciousness are all prompting leaders to act.     

According to Gartner, labor shortages are a top challenge for 60% of supply chain organizations, and one-third lack the ability to attract, retain, and engage the talent they need. As global supply chains adapt to these changes, industry leaders must hone in on the characteristics of a future supply chain leader.    

In the past, supply chain executives have been strong negotiators and conscious of cost reduction. Now, leaders need to look at the supply chain as a business, and partner with suppliers to create better outcomes. As the supply chain is working to become more sustainable, now is the time for supply chain leaders to develop a more forward-looking approach, in order to advance company goals.  

Step One: Consider Your Model and Needs 

Supply chain models can vary widely based on a company's value proposition and business model. Likewise, the skills and experience needed to lead a team may vary widely as well. For example, the leader of an efficient supply chain model focused on quantity and lowering costs will often differ in their strategy considerably from the executive needed to drive improvement of an agile or flexible model focused on providing quality products. 

For supply chain leaders, including chief supply chain officers (CSCOs), there are core skills that all leaders must have: critical problem-solving, global mindset and experience, operational expertise, and team management.  

By understanding and mapping individual models and industry requirements, companies can build out the profile of a supply chain leader that meets the needs of today and the future. From here, they can begin the process of identifying and developing high-potential talent while also considering the potential external hires needed to fill immediate skill gaps. 

Getting supply chain leadership right is a risky proposition. As McKinsey & Co explains it, “SCM is the lifeline of several companies, and there’s no success in the business if the supply chains don’t work.” 

How to Prepare for Your Next Supply Chain Leader 

To ensure success in your supply chain leader, reviewing and refining performance metrics is important. Start by identifying key performance indicators (KPIs) that measure your outcome, activity, and effectiveness in the business and link that to KPIs in the supply chain. Once you have identified what KPIs are advancing or lacking, that will inform what the future supply chain leader will look like for each organization. An organization’s supply chain leader should be measured and evaluated with a general manager lens, considering cost reduction and revenue enhancements.  

When evaluating a company’s overall performance, it is important to keep the current business structure, and measure with KPIs and incentives. Leaders who invest in systems and tools, and who integrate supply chain thinking, will add transparency and data-driven decision-making to help improve the supply chain function, and will help prioritize what products are manufactured and where. 

The Profile of Future Supply Chain Leadership 

The ideal supply chain leader is a well-rounded and multi-faceted executive. Given the industry and model differences, this executive should possess a highly operational, organizational, global, and strategic mindset. Multi-functional experience in manufacturing or plant operations brings additional expertise to the function. 

A future-ready supply chain leader skill set should include:

Complexity. The ability to manage multiple entities that may have different goals and objectives, requiring close communication, collaboration, and partnerships.

Technical. They must have technical skills in line operations and supply chain management, including logistics, procurement, inventory management, and demand forecasting.

Globalization. Due to the global economy, it is necessary for supply chain leaders to be knowledgeable about global regulations and customs. 

Technology. A leader that can digitally transform the supply chain will make it easier to manage inventory, shipment tracking, and performance.

Competition. Because of the competitive landscape and consistently evolving nature of the supply chain, leaders need to stay on top of trends and remain competitive. 

Cost. A supply chain leader must be able to identify cost-saving opportunities while maintaining quality and performance.

Industry.  A leader must stay on top of industry trends, like AI/technology enhancements, intelligent workflows, blockchain, and machine learning.

By identifying and laying down the groundwork for what the future supply chain leader looks like for each company, executives will be able to attract and retain top talent that will bring success. Having a supply chain executive that can think and plan for the long game, run the supply chain like a business, and encourage employees to think at least five years ahead is key to a successful relationship between the supplier and company. 

Lisa Walker is the Industrial Practice Leader at DHR Global.