• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Blogs » Think Tank » Localizing Decision-Making Maximizes Benefits of Digital Tech Investments

Think Tank
Think Tank RSS FeedRSS

Localizing Decision-Making Maximizes Benefits of Digital Tech Investments

A PERSON HOLDING A CELL PHONE IN FRONT OF A TABLET. A DIGITAL RENDERING OF STOCK MARKET GRAPHS HOVERS ABOVE THE CELL PHONE.

Photo: iStock.com/champpixs

October 18, 2023
Suzie Petrusic, SCB Contributor

As they strive to create resilience, build sustainability and drive top-line growth, supply chain decision-makers are caught in a balancing act of competing priorities. To analyze the tradeoffs, many are investing in digital technologies.

Often, however, that investment has yet to yield positive results. According to a Gartner survey of 600 supply chain decision-makers, the use of digital models to analyze trade-offs has made no meaningful impact on operations.

Despite using multiple forms of digital technology for tradeoff analysis, global decision-makers make 8% more bad decisions than good ones. Exercises such as “what-if” analyses, scenario modeling and simulations haven’t significantly improved the likelihood of making good decisions.

Additionally, only 10% of global decision-makers surveyed have the requisite process adherence, data-derived models and tradeoff clarity in place. Their digital decision models are only capturing about 20% of actual, on-the-ground processes that impact the key performance indicators they’re optimizing for. 

Technology should help, not hurt, decision-making, so why is it impeding progress?

The three main areas of investment by supply chain leaders are defining end-to-end processes, visibility and analytics. Together they can boost the likelihood of making good decisions by 206%. Yet only 10% of all decision-makers surveyed actually had all three of those key enablers in place.

On average, they estimated, staff deviates from defined processes about 30% to 40% of the time. As a result, digital decision models aren’t the reality for many supply chains. Without substantial progress on process adherence and data-derived model use, investments in tradeoff clarity will provide little value.

Supply chains have a choice: continue fumbling forward with the same investments, knowing the high hurdles that must be overcome to realize return, or realign investments toward empowering localized cross-functional decision-making.

Local leaders can provide visibility into the invisible, undigitized (and sometimes undigitizable) information that impacts a supply chain’s KPIs. Human visibility fuels knowledge of which variables to consider, as well as the accuracy of all underlying data.

Granting local leaders the power to make decisions — using current technology with no new investments — is more effective than working top-down, from the global end-to-end level. Localized, cross-functional decision-makers make good decisions 11% more often than their global counterparts, and they make good ones 14% more often than bad ones.

It’s important to note that our research doesn’t recommend that supply chain leaders abandon global decision-making or re-invent their entire digital technology strategy. Instead, it points supply chain leaders to an alternative path: realizing return on investment from digital investments by supporting localized decision-makers with digital tradeoff analysis. They can do so by:

  • Determining which decisions should be made at a local, cross-functional level. Localize cross-functional decisions where product and customer complexity is high, and where analog process knowledge and in-person collaborations are important to the decision. Decisions should remain global when they’re straightforward, mostly digitized or require little in-person collaboration.
  • Incorporating human visibility into the digital analysis of those decisions. Empower local, cross-functional decision makers to make and execute decisions. Then collect performance results and conduct a “what-if” analysis comparing the local approach against what outcomes the global decision-maker would have expected.
  • Digitizing supply chain processes. Only about 40% to 50% of all relevant processes have been fully digitized, a fundamental prerequisite to being able to use data-derived models. A strategy to accelerate digitization of supply chain processes is to democratize robotic process automation (RPA) throughout the supply chain.

Through localized, cross-functional decision-making, supply chain leaders can optimize each local, cross-functional segment and close the information gap by building stronger, more accurate and more efficient global outcomes. By augmenting tradeoff analysis technology, local decision makers are 83% more likely to make a good decision than a bad one.

Suzie Petrusic is senior director analyst in the Gartner Supply Chain Practice.

Technology Data Management (Big Data/IoT/Blockchain) ERP & Enterprise Systems Supply Chain Planning & Optimization

RELATED CONTENT

RELATED VIDEOS

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Featured Product

Popular Stories

  • Stacks of multi-colored shipping containers arranged in rows at a port, with rows of blue and grey shipping cranes lining the background along the coastline

    Port of Savannah Approved for New 3.5M TEU Terminal

    Global Gateways
  • An overhead view of a port, with stacks of containers and vehicles moving through rows

    Podcast | AI in Supply Chain Planning: Impact, Promise and Limits

    Artificial Intelligence
  • An overhead view of a shipping port stacked with containers, with stylized lines forming a grid connecting ships and berths

    Beyond De Minimis: Why Importers Need Defensible Shipment Data

    Parcel & Express
  • On Demand Webinar Oliver Wight Wed Oct 14 2026 2p ET.png

    AI in IBP: From Data to Decisions

    Webinars
  • SCB_Q426_SAP_FSR_THUMB_2.jpg

    An AI Playbook for Your Journey to Autonomous Planning

    Global Logistics

Digital Edition

Scb q3 26 cover

100 Great Supply Chain Partners 2026: The Secret to Supply Chain Success

VIEW THE LATEST ISSUE

Case Studies

  • Recycled Tagging Fasteners: Small Changes Make a Big Impact

  • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

    Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

  • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

    Moving Robots Site-to-Site

  • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

  • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

Visit Our Sponsors

4flow Amazon Freight Anaplan
Arkieva AutoStore Blue Yonder
Canadian National Railway Company Carton Cloud CoEnterprise
Dassault Descartes Dexory
Duravant E2Open EPG
General Logistics Systems GEP Hy-Tek
iGPS Knapp Korber
Lyngsoe Odyssey Logistics OMP
PeakAI Procurability Quinyx
SAP Sikick Staples
S&P Global Mobility Systech TADA
Tive TransImpact US Bank
Werner WSI
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Email Preferences
    • Newsletters
  • Resources
    • Events Calendar
    • 2026 Event Coverage
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing