Published on November 16, 2023, 8:32 pm

Most Companies Will Struggle to Achieve E2E Resiliency in Supply Chains by 2026, Says Gartner

According to renowned research and advisory company Gartner, the majority of companies will remain tied to an outdated model that will hinder their ability to achieve end-to-end (E2E) resiliency in their supply chains by 2026.

An analysis conducted by Gartner indicates that only a few companies have embraced the necessary paradigm shift from being forecast-driven and focused on accuracy to prioritizing uncertainty management in their supply chains. Until organizations make this fundamental shift and technology providers develop solutions specifically designed for resiliency rather than just increasing decision speed or digitizing the supply chain, achieving true E2E resiliency across most organizational supply chains will continue to be elusive.

Tim Payne, Vice President Analyst with Gartner’s Supply Chain practice, highlights how the current focus on constantly improving accuracy can actually result in more fragile and rigid supply chains that are ill-equipped to handle today’s uncertainties. He emphasizes that companies need to think beyond accuracy and instead focus on building flexible and adaptable supply chains.

Payne further explains that there is widespread confusion in the market regarding the concept of resiliency. This has led to a tech buying environment where solutions are often repurposed or remarketed as resiliency-focused without actually providing the required flexibility and adaptability for true E2E resiliency.

To start on the path towards achieving E2E resiliency and avoid falling into ineffective “resiliency-washing” practices, organizations need to reinvent their strategies. Gartner recommends several key steps:

1. Drop forecasting-based models: Companies should enable their supply chain to leverage uncertainty mitigation tactics by not constantly propagating demand signals throughout the entire supply chain. Instead, they should shift planning focus onto uncertainty rather than solely relying on plan accuracy.

2. Drive from unknown uncertainty toward known variability: Leveraging artificial intelligence (AI) and machine learning (ML), companies can make multiple predictions for different scenarios, helping them navigate known variability in their supply chains.

3. Build a digital supply chain twin (DSCT): Identifying key model parameters that enhance resiliency is essential in developing a DSCT. This digital representation of the supply chain will facilitate improved decision-making processes.

4. Assess supply chain decisions using uncertainty metrics: Instead of solely relying on accuracy metrics, organizations should use key performance indicators (KPIs) that describe the supply chain’s ability to tolerate uncertainty and the probability of execution for relevant decisions.

In conclusion, achieving E2E resiliency in supply chains requires a comprehensive strategy that goes beyond traditional accuracy-focused models. By embracing uncertainty and adopting technologies such as AI and ML, organizations can build agile and resilient supply chains capable of withstanding disruptions and uncertainties.

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