According to a new prediction from Gartner, by 2028, 60% of supply chain digital adoption efforts will fail to deliver promised value due to sufficient investment in associated learning and development (L&D).

“In the current economic climate, CSCOs are under immense pressure to manage costs while striving for efficiency gains through new technology investments,” explained Tom Enright, who’s VP analyst in Gartner’s Supply Chain practice.

“While technology promises long-term cost savings, the lack of investment in L&D jeopardizes these initiatives, as it is crucial to equip teams with the skills needed to leverage these new tools effectively.”

The prediction comes alongside a survey of nearly 600 supply chain practitioners, which focused on the future drivers of supply chain of the next few years.

It found that 58% identified rapid tech advancement as a major future challenge, 58% expected intensified talent competition to raise hiring costs, and that 40% believed hyperautomation was evolving skills requirements.

Additional Gartner research on generative AI deployments within the supply chain also showed that individual productivity gains enabled by the tech for desk-basked workers have not translated into gains at the team level or for frontline workers.

Gartner highlighted the data ultimately indicates that L&D initiatives must be integrated into the technology investment process to ensure that full value is realised.

“High-performing learning environments are emerging as strategic differentiators,” added Enright.

“Leaders in these enterprises embed L&D initiatives within their new technology investments and are therefore better able to shield these activities from short-term budget pressures.”

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To overcome the barriers to successful digital adoption, Gartner recommends that CSCOs should consider the following strategies.

First, lead and invest in development. Supply chain leaders should spearhead L&D strategy, collaborating with HR to focus on skills, audiences, priorities, timing, and funding. This ensures investments gain traction with supply chain leaders and staff.

Secondly, reframe L&D as an investment. Position L&D as a critical component of supply chain outcomes, emphasising its role in amplifying the future value of data, technology, and productivity from AI investments.

CSCOs should also factor in maintaining steady investment in L&D to shift mindsets, skills, and behaviours. This includes courseware, dedicated roles for training design and deployment, and extended learning networks to foster a community of learning.

Lastly, Gartner advocates for embracing agile methodologies. Implement agile learning tools and methodologies that allow supply chain staff to use natural language questions for real-time learning. This approach ensures skills development keeps pace with the demands of AI disruptions.