Supply Chain & Operations Officers
Supply-chain officer focus: The strategic value of succession planning
The chief supply chain officer (CSCO) role has undergone unprecedented transformation in recent years, particularly in sectors where supply chains are mission-critical—consumer goods, industrials, healthcare, and pharmaceuticals, for example. The role, which is also frequently referred to as chief operating officer (COO), is growing in scope and complexity, and in many companies is becoming more of a driving force behind strategic imperatives.
This transformation is unsurprising, given today’s operational context. The Covid-19 pandemic exposed vulnerabilities in supply chains, demanding an extensive overhaul in the remit of CSCOs. Ongoing geopolitical tensions and economic volatility—including the effects of recent US tariff changes—have prompted companies to continue optimizing their operations to increase agility and resiliency, unlocking value while attempting to keep costs down. But with increased environmental regulations and a constant shift toward more localized supply chains, disruption and uncertainty will only continue. Many organizations have initiated large-scale transformation processes as a result.
To navigate this complex supply chain environment, companies are making changes in the leadership of their supply chain functions. Our analysis of more than 360 CSCO roles across the world in terms of tenure, diversity, and prior experience shows that 36% of the world’s largest publicly listed companies have appointed new CSCOs since January 2023.1 Furthermore, CSCOs spend on average 4.2 years in the role. And, while the shifting priorities of CSCOs are well-documented, less has been said about the critical importance of succession planning for these roles, despite the rate and pace of turnover.
The elevated strategic nature of the role is also demanding a more rigorous approach to succession planning and talent development than ever before. But organizations face a challenge: traditionally, supply chain and operations functions were not always the most attractive career paths for young leaders. High responsibility, limited visibility, and structural ambiguity have deterred many high-potential candidates, and the role’s new breadth and enterprise influence have not yet changed the situation. When coupled with the relatively short tenures of these leaders, the lack of a pipeline dedicated to developing CSCOs’ capabilities could become a significant threat to companies’ ability to maintain a competitive edge and create long-term value.
To understand the critical leadership characteristics that will define success for the next generation of supply chain leaders in this context, we interviewed 30 supply chain leaders around the world. Their insights, and our ongoing work with CSCOs, also suggest how companies can future-proof their organizations by rethinking succession planning for this function.
To learn more about the strategic value of succession planning for chief supply chain officers, download the PDF.
About the authors
Camilla Gilone (cgilone@heidrick.com) is a principal in Heidrick & Struggles’ London office and a member of the global Supply Chain & Operations Officers Practice.
Fabrice Lebecq (flebecq@heidrick.com) is a partner in Heidrick & Struggles’ Brussels office and global head of the Supply Chain & Operations Officers Practice.
Reference
1 This and all following data from Heidrick & Struggles proprietary analysis of chief supply chain officers from companies in the Fortune 1000, Fortune Europe 500, and APAC 150, 2023–2025 (YTD).