Disconnect between C-level executives, supply chain leaders

LeanDNA, the leading provider of intelligent supply chain execution solutions, released the initial results of a survey conducted by Wakefield Research, revealing a significant disconnect between C-level executives and supply chain leaders regarding the strategic role of supply chain in driving business growth. The survey of 100 C-level U.S. executives and 100 U.S. supply chain leaders highlights a pervasive communication gap and differing perspectives on the value and priorities of supply chain functions.

Driving growth: Perception gap impacts investment

While a majority in both groups recognize supply chain as a growth driver, supply chain leaders overwhelmingly see themselves as such (85%) compared to C-level executives (70%). This 15-point gap suggests a potential misalignment in investment prioritization and the level of attention supply chain leaders receive from top leadership.

Despite this gap, nearly half (46%) of C-level executives expect supply chain operations to increase in visibility within the C-suite over the next 12 months, with planned increases in staffing (41%) and investments (38%).

Areas of alignment: Digital synchronization benefits

When considering the following percentages, the first number reflects the responses of C-level leaders, while the second reflects those of supply chain leaders. Both groups identified similar primary benefits of digital supply chain synchronization: enhanced supplier reliability (54%, 53%), increased growth and revenue (51%, 53%), and improved on-time delivery (48%, 49%).

Areas of disagreement: Risk prioritization

Executives and supply chain leaders differ in their prioritization of risks associated with delaying operational innovations. Executives are most concerned with increased production disruptions (53%) and slower response to market fluctuations (43%), while supply chain leaders prioritize higher inventory costs, reputational damage, and lost revenue (53% each), as well as regulatory compliance risks (50%).

Communication breakdown: Value misunderstood

A striking 99% of executives and 100% of supply chain leaders acknowledge that supply chain leaders struggle to articulate the value they bring to the company. Moreover, 55% of executives and 61% of supply chain leaders believe the onus is on the supply chain side to improve communication.

“Even as many companies rely on smooth supply-chain operations to keep their company going, and as most executives acknowledge supply chains as growth drivers, there’s still a disconnect in linking those concepts,” says Andy Ellenthal, CEO of LeanDNA. “For 85% of C-Level executives and 94% of supply-chain leaders, their company’s top leadership is still skeptical of the link between supply-chain resiliency and business growth. That lack of effective communication from the supply chain probably isn’t helping.”

Sleepless nights: Differing concerns

Supply chain leaders’ top concerns include balancing sustainability goals (41%), handling compliance and regulatory changes (41%) and reducing costs without compromising delivery performance (37%). Executives, on the other hand, are most worried about managing disruptions from material shortages or delays (38%) and balancing sustainability with operational efficiency (37%).

Key takeaways:

• Internal visibility disconnect: A clear perception and priority gap exists between supply chain and top business leadership.
• Untapped growth potential: Supply chain represents a significant, underutilized lever for business growth.
• Friction hinders success: The communication gap between the C-suite and supply chain leaders inhibits organizational success and the ability to capitalize on opportunities.

“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,” Ellenthal adds.

The survey results are available on LeanDNA’s website.