Gartner: Data Visibility Becoming Integral to Supply Chains

The evolving global landscape of supply chains presents myriad challenges and opportunities for C-Level procurement executives.

But such leaders have a unique chance to steer their organisations through complex risk scenarios by utilising enhanced data visibility and scenario planning, according to insights shared at the Gartner Supply Chain Symposium/Xpo in Barcelona.

The pressing environment calls into question whether businesses are adequately prepared to manage potential outcomes against economic uncertainties, geopolitical dynamics and the rapid pace of technological evolution.

“The trends that are reshaping our world are not short-term disruptions,” asserts Lindsay Azim, Director Analyst in Gartner's Supply Chain practice. “These are generational shifts in how we live and operate, leading to peak levels of global uncertainty.

"If not addressed, divergence will create confusion, challenging the organisation’s ability to stay focused.”

Risk mitigation lags behind

Despite the urgency, many organisations lag in applying risk-mitigation strategies.

A Gartner survey involving 506 supply chain leaders from December 2024 indicates that only a mere 19% have fully embedded scenario planning into their strategies. Moreover, just 32% have aligned these strategies with overarching business goals, as recognised by their CEOs.

The gap highlights the existing limitations within supply chain functions. While improving preparedness is a general goal, often there is a lack of investment and execution – a critical concern where CEOs expect competitive advantages from supply chain operations.

Without robust strategies, organisations may find themselves blindsided by future disruptions.

According to Gartner, leaders must employ tools that harness the potential of working with uncertainty rather than opposing it.

Data visibility and scenario planning

Gartner identifies advanced data visibility and scenario planning as pivotal areas for investment. Though valued by procurement leaders, the execution of these tools remains sporadic.

With enhanced data visibility, procurement teams can swiftly react to real-world events and geopolitical risk, while the ability to interpret real-time data and execute decision models promptly allows companies to adjust before disruptions occur.

Ultimately, data-driven decisions enable procurement processes to be more responsive and execution-focused.

On the other hand, scenario planning provides a foresight advantage. Organisations should routinely produce and reassess potential “what-if” scenarios to foresee events that may necessitate changes in procurement strategies. As detailed by Gartner, such analyses should be regular, especially when a company's supply chain footprint alters or when devising a new strategic approach.

This proactive risk planning approach allows businesses to architect agile networks that can pivot as necessary. It also lays the groundwork for future investments by correlating risk with regulatory requirements, internal culture and new technological readiness.

Building agile procurement networks

Procurement and supply chain leaders must focus on constructing adaptable, diversified networks that support both growth and resilience. Diversification involves modelling various options to deliver capacity, mitigate exposure and create strategic flexibility.

Technologies such as AI can enhance decision-making and expedite innovation, although Gartner advises strategic technology investments. Procurement leaders should align investment profiles with organisational risk tolerance and long-term objectives, opting for technology based on current capabilities rather than trends alone.

By adhering to a disciplined approach, procurement strategies remain flexible and synchronised with broader objectives, particularly in uncertain conditions.

Lindsay concludes: “Divergence doesn't create just two possible outcomes; it creates an infinite number of possible outcomes over time. Through access to high-quality data and scenario planning, CSCOs can take steps to mitigate risk, drive resilience and deliver profitable growth, achieving the competitive edge leadership needs.”

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