This is a summary from the following HBR article which can be found in full here: https://hbr.org/2024/09/to-build-resilience-ceos-need-to-become-supply-chain-experts
At Supply Chain Planning.ie, we champion the mantra that supply chain is becoming increasingly relevant and essential, driven by two major trends: sustainability and resilience.
A recent article in the Harvard Business Review highlights how resilience, in particular, is propelling supply chain professionals into the highest executive positions within companies.
The Rising Tide of Supply Chain Professionals in Leadership
Traditionally, CEOs have often risen through the ranks of finance, strategy, or technology departments. However, the landscape is shifting. The article points out a growing number of CEOs who have ascended from high-level supply chain roles. This trend is a direct response to the complex challenges businesses face today—challenges that require a deep understanding of global supply chains.
Notable examples include Mary Barra of General Motors and Tim Cook of Apple, both of whom have extensive backgrounds in supply chain management. Their leadership demonstrates how supply chain expertise can drive strategic decision-making at the highest level.
Why Resilience Matters More Than Ever
Global events such as the COVID-19 pandemic, geopolitical tensions, and environmental disruptions have exposed vulnerabilities in traditional supply chains. These “black swan” events have underscored the need for resilience—the ability to anticipate, adapt, and respond to unexpected disruptions.
Supply chain professionals are uniquely equipped to build this resilience. Their expertise enables companies to:
- Identify Risks Early: Proactively recognize potential supply chain disruptions.
- Adapt Quickly: Implement contingency plans to mitigate impacts.
- Maintain Continuity: Ensure consistent delivery of products and services to customers.
Sustainability and Resilience: Two Sides of the Same Coin
While resilience addresses the immediate need to withstand shocks, sustainability focuses on long-term viability. Sustainable practices in the supply chain—such as reducing waste, optimizing resource use, and ethical sourcing—not only benefit the environment but also enhance resilience by creating more robust and adaptable systems.
At SCP.ie, we emphasize that integrating sustainability into supply chain strategies is essential. Companies that prioritize both sustainability and resilience are better positioned to navigate uncertainties and achieve long-term success.
Implications for Organizations
The trend of supply chain professionals moving into CEO roles has significant implications:
- Strategic Importance of Supply Chain: Organizations must recognize the supply chain as a strategic asset rather than a cost center.
- Talent Development: Investing in the development of supply chain talent is crucial. Rotational programs and leadership training can prepare professionals for executive roles.
- Board-Level Focus: Boards should prioritize supply chain expertise in succession planning, acknowledging its critical role in organizational resilience.
Conclusion
The elevation of supply chain professionals to CEO positions underscores the vital role of resilience in today’s business world. As companies face increasingly complex challenges, those led by individuals with deep supply chain expertise are better equipped to adapt and thrive.
By embracing the dual drivers of sustainability and resilience, organizations can not only mitigate risks but also capitalize on new opportunities. At SCP.ie, we advocate for the empowerment of supply chain professionals and the integration of sustainable, resilient practices as key strategies for future success.
