Gartner: Most Supply Chains Unprepared for Future Challenges

Supply chain organisations are under increasing pressure to adapt to rapid change, yet only 29% have embraced at least three of the five key characteristics that will define future success.

That’s according to Gartner’s 'Future of Supply Chain 2025' report, which highlights the need for Chief Supply Chain Officers (CSCOs) to focus on agility, resilience and regionalisation, alongside deeper integration within their organisations and wider supply chain networks.

The report exposes the growing challenges faced by supply chain leaders, from evolving trade policies to proving the value of AI in operations.

To navigate these pressures, businesses must move beyond short-term fixes and instead embed long-term strategic thinking into their supply chain operations.

The five characteristics of future-ready supply chains

Gartner’s research draws insights from hundreds of supply chain professionals across multiple industries and regions.

Based on this, the report identifies five competitive characteristics that will separate leading organisations from the rest:

• Agility – The ability to respond swiftly to changes and disruptions
• Resilience – Ensuring operations can recover from shocks and setbacks
• Regionalisation – Reducing reliance on global supply chains through regional hubs
• Integrated ecosystems – Strengthening collaboration across supply chain partners
• Integrated enterprise strategy – Aligning supply chain goals with broader business objectives

Organisations that have already embedded at least three of these attributes are categorised as “leaders” in the industry.

These companies demonstrate a proactive approach to supply chain management, ensuring they remain competitive despite growing uncertainties.

Strategic investment over short-term fixes

One of the key findings from the report is that leading organisations prioritise strategic investment over reactive decision-making. Rather than chasing the latest technology trends, they focus on long-term supply chain resilience and business alignment.

“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” explains Pierfrancesco Manenti, VP Analyst in Gartner’s Supply Chain practice.

While many organisations recognise the potential of advanced technologies—such as digital supply chain twins and real-time visibility—they are taking a measured approach to adoption.

Leaders plan to invest in these innovations over the next three to five years, ensuring they have the right foundations in place before committing significant resources.

In contrast, non-leading organisations often prioritise technology investments prematurely, without first developing the necessary operational capabilities. This highlights the need for a structured, strategic approach rather than a reliance on quick technological fixes.

Four approaches

Gartner’s analysis reveals four distinct strategies that organisations are using to build future-ready supply chains. Each approach prioritises different aspects of supply chain development, from sustainability to operational efficiency:

• Design – Focuses on business model innovation to simplify operations and reduce complexity. Companies in this category standardise product designs across variations, leading to more streamlined and adaptable supply chains.
• Durability – Prioritises sustainability and risk management to ensure long-term stability. Organisations in this category emphasise responsible sourcing and transparency, minimising environmental impact while strengthening supply chain resilience.
• Deferment – Takes a conservative approach, strategically pausing investments to optimise cost efficiency and operational excellence. This is common in industries with stringent regulations or lower risk tolerance.
• Decision – Leverages technology and talent to navigate complexity. These companies invest in AI, machine learning and real-time analytics to drive innovation and adaptability.

While each approach offers its own benefits, Gartner’s findings suggest that companies adopting the Design strategy may be best positioned for long-term success.

“While CSCOs can be successful aligning to any of the four profiles, the data suggests following the Design profile,” adds Pierfrancesco.

“Its emphasis on business model innovation capabilities could be the most fruitful, as there are more leaders aligned with the Design profile compared to the others.”

Preparing for the future

The report makes it clear that supply chain leaders must move beyond reactive strategies and instead focus on proactive, structured investments. Companies that commit to a clear and structured strategy will be better prepared to handle the complexities of an evolving supply chain landscape.

Gartner’s insights suggest that success in supply chain management is not about adopting the latest technology for the sake of it but ensuring that investments align with long-term business goals.

Organisations that embed agility, resilience and integration into their supply chain strategies will be best positioned to navigate disruptions, regulatory changes and shifting market demands.

As businesses prepare for the future, supply chain leaders must decide which approach best suits their industry, risk appetite and operational goals.

Whether focusing on business model innovation, sustainability, cost efficiency or advanced technology, the key is to take deliberate, well-planned steps towards long-term resilience.

Ultimately, Gartner’s message is clear: supply chain success depends on strategic foresight, not short-term fixes.

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