C-Suite and Supply Chain Execs Can’t Agree on Modernization Execution: EY

Where are the Gaps?

There are three primary areas of conflict between CEOs, COOs, CFOs, etc., and SVPs and VPs of supply chain functions, according to EY: the value of the supply chain, achieving supply chain autonomy, and breaking down silos in the supply chain. 

On the C-suite side, the supply chain is a cost center first and foremost, per 88% of respondents. However, 88% of supply chain executives identify it as a core influencer of customer needs — whereas a lower percentage (76%) of the C-suite believe the supply chain plays a significant role in promptly addressing customer needs.  

When it comes to digital maturity, the C-suite and executives are on different timelines. Twenty-seven percent of C-suite leaders expect to achieve a mostly autonomous supply chain by 2040, while only 12% of executives agree. Thirty-nine percent of executives have much more lofty expectations, believing it can be achieved by 2030 — only 25% of the C-suite is on board. 

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EY attributes C-suite skepticism to possible failures in previous supply chain technology implementations, or those scaled back due to challenges. 

Lastly, C-suites and execs are having difficulty getting on the same page when it comes to cross-functional collaboration across planning, procurement, manufacturing, and logistics. Supply chain executives are much more likely to see the benefits of internal collaboration on both productivity and resiliency (64% vs. 45% C-suite).