Scaling Supply Chain Automation Requires Human Muscle

We gather our Chief Supply Chain Officer community a few times a year to brief them on the latest Gartner research and their peers’ emerging best practices. In July, we hosted a CSCO Executive Briefing on physical and digital automation’s impact on people.

The trends and data we picked up from the Briefing demonstrate that the intersection of automation, quality and workforce engagement is more critical than ever. Here’s a look at how these themes are shaping the future of manufacturing and supply chain operations.

Attendees to our July event told us that deliberately and methodically scaling automation beyond a few manufacturing sites is core to their strategies. Their automation initiatives typically begin as strategic projects, often originating from operational pain points or global priorities. Then, proofs of concept allow them to test each new idea to determine its viability and scalability. Successful pilots launch in other operations — like other manufacturing sites or warehouses — before full-scale deployment across the enterprise.

One company offers a prime example. It’s historically used a single planning solution globally, and as it transitions to next-generation planning, its plans to continue focusing on deploying consistent solutions worldwide. The same organization’s efforts to automate semi-manual processes are another example. After a successful proof of concept in Asia, the company piloted the technology in the U.S. before now rolling it out across all its global operations. This approach ensures not only technological consistency but also easier troubleshooting and future advancements.

Performance metrics underscore this strategy’s success. The company reports a clear roadmap to deploy over 250 robots worldwide within the next few years and is aiming for 2,000 robots by 2030. Robust governance structures support these initiatives by balancing local experimentation with global alignment, ensuring that innovations are scalable and resources are optimally allocated.

Executive Briefing attendees reported that they deliver superior experiences to consumers by embedding quality at every stage of their supply chains. Quality is at the heart of most companies, but bringing consistency across a large global organization is easier said than done. How can a consistent level of quality be delivered to tens of millions of consumers worldwide?

One of their approaches is implementing 100% inline digital quality checks in manufacturing. The more traditional method is sampling batches and performing the work as close to real-time as possible (but still offline). This results in:

• Increased product quality: By testing the products as they’re produced, a company can ensure that only the best products reach consumers, resulting in fewer consumer complaints.
• Reduced scrap and waste: Issues are detected and addressed immediately, minimizing the amount of scrapped product.
• Enhanced sustainability: Less waste means a smaller environmental footprint, supporting the enterprise’s emissions goals.

Automation’s success is inseparable from the people who implement and operate it. CSCOs at the July Executive Briefing build their labor strategies around creating a high-performing, adaptive and highly skilled workforce through:

• Organizational design: Structuring teams on the shop floor for optimal development.
• Upskilling and recruitment: Leveraging practical testing and new technologies to ensure new hires have learning agility and can adapt to new environments.
• Reward systems: Adapting reward structures to reflect how today’s workforce values time off as much as monetary rewards.
• Culture of trust and recognition: Ensuring every employee’s voice is heard and contributions are valued and responded to appropriately.

The results speak for themselves. One organization reported its engagement increased by 5% while its frontline regional turnover dropped by 3.45 points. These improvements are crucial as the workforce ages and new talent is needed to sustain operations.

Moreover, initiatives like leveraging generative AI are empowering frontline workers by making troubleshooting and accessing standard operating procedures easier. This improves performance and safety while helping bridge skill gaps as experienced workers retire.

Scaling automation and technology is not just about machines and systems—it’s about people. By integrating robust scaling strategies, a relentless focus on quality and a deep commitment to workforce engagement, organizations can unlock new levels of performance, resilience and innovation. As automation continues to evolve, the most successful companies will be those that put people at the center of their automation journey.

Wade L. McDaniel
VP Distinguished Advisor
Gartner Supply Chain
wade.mcdaniel@gartner.com