Supply chain specialist or generalist: Which is right for you?
Specialize, and you might get "locked in" to a particular area of responsibility. Broaden your knowledge and experience, and you could move further up the career ladder.
Supply chain management is a complex and challenging discipline. With so many functions involved (procurement, manufacturing, demand planning, inventory, and logistics, to name just a few), there are many potential areas of career specialization.
Specialization can be a good thing, and it plays an important role in supply chain management. By having specialists in key areas of the supply chain system, companies can make impressive gains in efficiency, effectiveness, customer satisfaction, and market expansion.
If you are a specialist, it often implies that you are an expert in a certain area of the supply chain system. In effect, you become the "go to" person for critical issues and challenges related to this specific realm of knowledge. Your particular skills and expertise can make you a valuable contributor to the success of the enterprise. Moreover, your deep knowledge in a key supply chain dimension can position you as a "big fish in a small pond." There is absolutely nothing wrong with becoming a specialist—if you do so as a result of a conscious decision.
However, depending on your career goals, there may be drawbacks to remaining a specialist. You could be cast as a "one-trick pony"—someone who is exceptionally capable in one area but appears to have no desire or, worse yet, lacks the ability to branch out into other areas. Another risk is being perceived as primarily an individual contributor—someone who performs very well in her own role but has limited ability to affect circumstances outside her specialty. In my work, I have often seen this perception arise when an executive has difficulty managing people. That is when you may hear comments like: "Joe is a great individual contributor; however, he really struggles when he tries to manage others. As long as we keep Joe where he is, he should do well."
Potentially the biggest risk of being a specialist is that you could become marginalized as business priorities rapidly evolve. This can happen when an industry's structure, technology, markets, or other dimensions radically change. This type of change may result in your company placing different weight on your particular role and area of expertise. I've seen this happen when companies are acquired, and the acquiring company changes a business's strategy and go-to-market model. A particular specialty that was highly valued prior to an acquisition may end up much lower on the priority list post-acquisition.
When it's time to broaden your credentials
The time will come in your career when you should consciously decide whether you want to continue as a specialist or broaden your experience, perspectives, and impact on your company. If you are currently a specialist but your ultimate goal is to ascend to the management ranks, then you should begin doing two things: 1) develop knowledge and experience in other areas within or outside of supply chain management; and 2) develop your people and leadership skills. Your mindset needs to transition from "I am a supply chain specialist with some generalist skills" to "I am a strong generalist business executive who leverages his supply chain expertise and experience to set strategy, lead people, and develop organizations."
As a general rule, the higher you go up the organizational hierarchy, the more you need to shift from specialist to generalist. While specialists tend to manage a narrow set of processes and information, generalists must be able to see the broader implications of decisions by focusing on strategic direction and on the people and processes needed to win.
I don't wish to imply that it's only management that needs to maintain a broader perspective. The ability to understand higher-level strategy is important in any role. If you don't know how your special area of expertise fits in with your company's ultimate goals, you could miss an opportunity to make a greater contribution to the company's success. Worse yet, your actions could be misaligned with the company's strategic direction and could actually inhibit overall progress.
To move up the career ladder, you will need to broaden your skills and perspectives. If you are in the early stages of your career, you can start by sharing your knowledge and experience with others. Is there someone in your department you can help to cross-train? Are there new hires you can assist in assimilating into your organization? By taking on initiatives like these you will develop leadership skills like mentoring and coaching.
Seek out opportunities to work in less familiar areas within your supply chain organization. This will let you see how your current role and that of other positions overlap or diverge. You can also volunteer for special-project teams at the corporate level and join ad hoc committees. These initiatives will give you insights into the larger strategic and organizational challenges facing the business.
A bolder step toward broadening your capabilities is to move into a completely new function like marketing, sales, or finance. Even accepting a lateral move will provide invaluable experience and demonstrate your willingness to tackle unfamiliar terrain. By doing so, you will evolve into a better-rounded executive.
Managing people directly or indirectly is a must for a generalist. To do it well requires more than intellect; it requires emotional intelligence, or EQ. High EQ is most often what differentiates the best leaders from everyone else. Leaders with high EQ are self-aware and in control of their emotional impulses. They are perceptive and can empathize with others. They have strong social skills and know how to make big things happen through others. This may be the greatest hallmark of strong generalists: They don't define success based on their own contributions. It isn't about them, it is about their organization.
Unlike our intelligence quotient (IQ), which is fixed in our adulthood, our emotional intelligence quotient can be developed with effort and focus. Even if you cannot claim today to be someone with a strong EQ, you can certainly become that kind of person in the near future. It is well worth the effort, because EQ turbocharges your career like nothing else.
Here are some key career accelerators that leverage EQ: 1) learning how to build and maintain strong relationships internally and externally; 2) developing influence skills that allow you to capture the heads and hearts of others; 3) developing exceptional communication skills that allow you to connect with your audience regardless of the setting; and 4) developing your self-awareness by learning how your personality and leadership style can be subtly and quickly adjusted to fit changing circumstances.
For a specialist who has mastered a specific supply chain dimension, one of the most difficult aspects of moving into management is embracing the ambiguity that comes from moving outside his or her comfort zone. But consider again the power of this declaration: "While earlier in my career I was a supply chain specialist with some developing general business skills, I have now become a strong generalist business executive who leverages his supply chain expertise and experience to set vision, lead people, and develop exceptionally strong organizations." Sound exciting to you? If it does, then make the decision to move from specialist to generalist today. If you want it badly enough, then begin working now to make it happen.
Just 29% of supply chain organizations have the competitive characteristics they’ll need for future readiness, according to a Gartner survey released Tuesday. The survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive.
Gartner surveyed 579 supply chain practitioners to determine the capabilities needed to manage the “future drivers of influence” on supply chains, which include artificial intelligence (AI) achievement and the ability to navigate new trade policies. According to the survey, the five competitive characteristics are: agility, resilience, regionalization, integrated ecosystems, and integrated enterprise strategy.
The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.
Less than a third have met that threshold.
“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” Pierfrancesco Manenti, vice president analyst in Gartner’s Supply Chain practice, said in a statement announcing the survey results.
“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti also said in the statement. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three to five years. The top five drivers are: achievement capability of AI (74%); the amount of new ESG regulations and trade policies being released (67%); geopolitical fight/transition for power (65%); control over data (62%); and talent scarcity (59%).
The analysis also identified four unique profiles of supply chain organizations, based on what their leaders deem as the most crucial capabilities for empowering their organizations over the next three to five years.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.