When the C-Suite Writes a Check That Supply Chain Can't Cash

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By Suzie Petrusic, Sr Director Analyst

Let’s face it, the phrase "unprecedented disruption" has become a bit of a cliché in the supply chain world. So has the conclusion that chaos is the new normal.??

As chief supply chain officers (CSCOs), you’re not just fighting fires. You’re navigating a storm that’s here to stay. The real challenge? Bridging the strategic misalignment between your supply chain capabilities and your company’s ambitious growth targets.?

Let’s dissect the root causes of this misalignment and explore three game-changing strategies that only a CSCO can implement to bring order to the chaos. Spoiler alert: It’s not just about better planning. It’s about strategic enterprise alignment.

A Strategic Gap Between Commitments and Capacity

A recent Gartner survey reveals a harsh reality: 69% of supply chain planning leaders believe their organizations are caught in a reactive cycle due to misalignment between planning outcomes and external realities. The result? Increased revenue but stagnant profit margins. The growth isn’t translating into profitability.?

The core issue lies in the disconnect between corporate finance’s annual commitments and the supply chain’s actual capacity in the same horizon. Finance and commercial teams often inflate supply chain capabilities, leading to unrealistic targets and costly inefficiencies. But it’s not just their fault — the supply chain often struggles to correct partners’ ideas about its capabilities. And that opens space for the solution: strategic alignment, not just better planning.?

Limit Annual Commitments to Current Capacity

First off, we must debunk a myth that exists in some C-suites: supply chains can’t magically expand to meet targets that are simply out of reach. It’s time to reset expectations and limit annual corporate commitments to what your supply chain can realistically deliver today. This is a hard message to deliver, but it will lead to sober conversations about the investments needed to bridge gaps between what finance and commercial need and what the supply chain can do.??

Take a leaf out of Land O’Lakes’ book. They’ve made past demonstrated performance a key input in setting annual business and financial targets. This approach ensures that until new investments in capacity realize their returns, expectations are grounded in reality. The result? A more resilient supply chain that aligns with corporate goals without overpromising.?

Demonstrate True Supply Chain Capacity

Finance and commercial teams often see asset utilization figures and assume there’s untapped capacity. The reality? That gap they see is often a theoretical phantom. Your actual utilization is likely closer to your 100% than they think.??

To reset expectations, use past demonstrated performance as your benchmark. AstraZeneca has nailed this approach. They base their plans on what their assets have consistently delivered in the past, grounding negotiations and decision-making with finance and commercial teams in reality. This not only sets realistic expectations but also clarifies where urgent investments are needed to bridge capacity gaps.?

Maintain Long-Term Strategic Alignment

Even if you manage to align short-term commitments with current capacity, external disruptions will continue to threaten this balance. The key is to create C-suite alignment on what’s most and least valuable to the enterprise, limit the amount of disruption that low-revenue products can cause and clarify and prioritize strategic investments for future growth.?

Procter & Gamble’s “What has to be true?” exercise is a masterclass in this approach. By posing this question, they ensure they provide decision-makers with strategic recommendations to achieve what the enterprise wants in the best way, even in volatile conditions. This exercise involves key decision-makers from supply chain, finance and commercial teams, ensuring that everyone is on the same page and working towards common objectives.?

Aligning Capabilities with Goals

The days of relying solely on planning to navigate supply chain volatility are over. The CSCO's unique role is to strategically align your supply chain’s capabilities with enterprise goals. By limiting annual growth commitments to current, proven capacity, demonstrating true supply chain capabilities and maintaining long-term strategic alignment, you can turn chaos into a competitive advantage.?

Your seat at the table isn’t about influence. It’s about necessity — your enterprise’s need for you to lead them profitably through the storm. By focusing on these strategic interventions, you can ensure that your supply chain not only survives but thrives in today’s volatile environment. Keep pushing the boundaries and remember: It’s not just about meeting demand. It’s about doing so profitably and sustainably.?

For more information on this topic, see Supply Chain Executive Report: Settle Planning Chaos with Strategic Alignment (subscription required).?You can also listen to our podcast on the topic on Gartner.com, Apple Podcasts and Spotify.

More Supply Chain Management Resources:

• Explore Supply Chain Planning Insights
• Download 4 Keys to Improving Supply Chain Planning Decisions
• Connect to Your CSCO Community
• Learn more about Gartner for Supply Chain

This newsletter provides an opportunity for Gartner analysts to test ideas and move research forward. Some comments or opinions expressed hereunder are those of individual analysts and do not always represent the views of Gartner, Inc. or its management.