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Supply Chain & Operations

Majority of Supply Chain Leaders Worried About Operating Costs, Survey Says

Report by Egon Zehnder and Imperial College Business School unveils top priorities and challenges for Chief Supply Chain Officers

  • February 2025
  • 4 mins read

LONDON/NEW YORK/ZURICH, February 27, 2025 

Nearly three-quarters (72%) of Chief Supply Chain Officers say that financial pressures are their biggest challenge, followed by customer demands, stakeholder expectations, supply complexity, and technology. This insight is part of a new survey released today by Egon Zehnder, the world’s preeminent leadership advisory firm, in collaboration with Imperial College Business School.

The report, “Chain Reaction 2025: Chief Supply Chain Officer Insights,” is a global survey of Chief Supply Chain Officers (CSCOs) from diverse industries and regions. The report sheds light on the evolving landscape of supply chain management, revealing how CSCOs are navigating unprecedented challenges and seizing new opportunities to drive their organizations forward.

The findings from their survey highlight a "perfect storm" of factors impacting supply chains, from trade disruptions and technological advancements to climate change. CSCOs are at the forefront of this transformation, focusing on streamlining operations, driving cultural shifts, and meeting stakeholder demands. They are seeking support to navigate future trends, lead digital change, and expand their talent pools to ensure long-term success.

Key findings include:

  • Cost pressure: A significant 72% of CSCOs identified cost pressure as their biggest challenge, followed by evolving customer demands (46%) and driving operational efficiency (40%). The global footprint of companies adds geopolitical and organizational complexities.

  • Strategic priorities: CSCOs prioritize managing stakeholder expectations (38%), including board and shareholder relations (31%), and driving cultural change (29%). Although 26% of respondents consider anticipating and adapting to future trends a key strategic priority, only 12% are currently dedicating time to this area.

  • Leadership traits and future needs: Essential leadership qualities for CSCOs include building and leading high-performing teams (56%), formulating a clear vision and strategy (50%), and delivering superior performance (37%). To better manage future challenges, CSCOs seek support in enhancing their capabilities in anticipating future trends (41%), managing digital transformation (37%), and recruiting and developing top talent (24%).

  • Key motivations: The primary motivation for 81% of respondents is driving transformation or turnaround initiatives, followed by tackling complex challenges (57%) and achieving career or personal growth (51%).

  • Technology impact: AI/machine learning, cybersecurity, and cloud services are the top technologies influencing CSCOs' businesses. These technologies are expected to remain critical over the next five years, with increasing focus on blockchain and chatbots/virtual assistants.

 

“CSCOs are facing a convergence of challenges that demand innovative solutions and transformational leadership,” said Tankut Sensurucu, who leads Egon Zehnder’s U.K. Supply Chain and Procurement Practice. “Our latest data underscores the critical need for supply chain leaders to not only manage immediate pressures but also to anticipate future trends and drive digital transformation. By fostering creativity and building adaptable teams, CSCOs can navigate this complex landscape and lead their organizations to sustained success. This requires a massive effort to learn new skills and leadership behaviors in supply chain organizations.”

“Supply chain leaders are at a pivotal moment where the ability to adapt and innovate is crucial,” said Professor Kevin Corley, who led the survey on behalf of Imperial College Business School. “Our findings emphasize the importance of understanding the leadership aspects of change within supply chain management. By addressing immediate operational challenges and strategically positioning their organizations for future success, CSCOs navigate the complexities of today's global supply chain landscape while driving sustainable growth.”

"The role of supply chain leadership in preserving or creating value has rarely been more complex," said David Brown, Director of Executive Education at Imperial College. “This research shows that successful CSCOs are pro-actively developing the skills and capabilities for themselves and their teams with talent development being top of their agenda. One fast and effective lever to help organizations innovate, adapt and excel is through Executive Education. In the supply chain – and related – areas it will become ever more clear which companies not only say, but act, on the idea that people are our most important asset.”

The survey, conducted in Q4 2024, captures perspectives from 68 CSCOs of large companies across 16 countries and various corporate structures. Notably, 84% of the respondents are the most senior executives in their organizations.

About Egon Zehnder 

Egon Zehnder is the world’s preeminent leadership advisory firm, inspiring leaders to navigate complex questions with human answers. We help organizations get to the heart of their leadership challenges and offer honest feedback and insights to help leaders realize their true being and purpose.

We are built on a foundation that supports partnership in the truest sense of the word and aligns our interests with the interests of our clients. Our 600 consultants across 67 offices and 36 countries are former industry and functional leaders who collaborate seamlessly to deliver the full power of the Firm to every client, every time. We believe that together we can transform people, organizations and the world through leadership.

About Imperial College Business School Executive Education

We are Imperial – a world-leading university for science, technology, engineering, medicine and business (STEMB), where scientific imagination leads to world-changing impact.

As a global top ten university in London, we use science to try to understand more of the universe and improve the lives of more people in it. Across our nine campuses and throughout our Imperial Global network, our 22,000 students, 8,000 staff, and partners work together on scientific discovery, innovation and entrepreneurship. Their work navigates some of the world’s toughest challenges in global health, climate change, AI, business leadership and more.

Founded in 1907, Imperial’s future builds on a distinguished past, having pioneered penicillin, holography and fibre optics. Today, Imperial combines exceptional teaching, world-class facilities and a habit of interdisciplinary practice to unlock scientific imagination.

Press Contact

Cheryl Soltis Martel 
cheryl.martel@egonzehnder.com

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