CSCOs Seem to Talk About the Same Things, But They Really Aren’t

We talk with hundreds of CSCOs each week through our analysts and regularly scheduled one-on-ones. That cadence has remained largely unchanged for years.

We discuss and advise on planning, logistics, strategy, technology platforms, and many other categories that also appear largely unchanged. It would be easy to conclude that things are much the same, except they aren’t.

The general framework in which CSCOs operate may feel familiar, but leaders must adapt to fast-moving, erratic shifts. They must continually assess their capabilities, discard what is no longer needed, upgrade others, and add new ones.

Let’s examine a few categories that have existed for a decade or more and consider why they are no longer talked about the in same ways.

Environmental sustainability has undergone a dramatic transformation, moving from a voluntary, aspirational priority to a regulated and operationalized business imperative.

Organizations spent the early 2020s making bold net-zero pledges. That phase is over. Companies are now walking back or redefining initial commitments because of economic headwinds, political pushback, and the hard reality that 2030 deadlines are approaching while many organizations remain off track.

Complying with environmental regulations might be the easier part of this transition. CSCOs are also responsible for operational continuity amid increasingly supercharged weather events. Building the right level of resilience at the right cost is now the priority.

What some might have viewed as a cost-per-kilo or cost-per-container function has moved to center stage.

According to the 2025 Gartner Future of Logistics Survey, 90% of logistics leaders now report directly to the C-suite, with more than 30% of high-performing logistics leaders answering to the CEO.

Transportation routes have been dramatically altered by war, weather, tariffs, availability, and cost. CSCOs tell us they do not expect these conditions to change within any practical planning horizon.

This disruption is accelerating the shift to end-to-end visibility. Most organizations are increasing spending on AI-driven predictive decision support. To capture more value from these solutions, however, the operating environment must be digitized, and that requires digital twins.

The question is no longer whether to invest, but where and how to prioritize.

Preserving choice and optionality is becoming a foundational capability in logistics networks. Speed is essential to competitiveness, and, in practice, it can be achieved only through digital transformation.

CSCOs have pursued automation across their operations, supported by traditional return-on-investment models with predictable payback periods. But as AI opens the way to autonomous operations, it is disrupting the CFO’s familiar ROI playbook. To drill down on this subject, see 6 AI Cost Drivers Every CFO Should Understand (subscription required).

The focus is shifting from a fixed amount saved after a set period to multiple scenario-based outcomes shaped by the variability of AI-driven solutions. CSCOs must therefore connect investments to enterprise value drivers such as revenue growth, cash flow, trust, and agility.

Moving from basic automation, (which will continue to have its uses) to autonomous physical and digital operations begins with a change in mindset. For more on this topic, see How to Lead Supply Chains Into the Autonomous Era (subscription required).

Automation treats supply chains as linear, predetermined workflows optimized for stable environments. Autonomy embraces them as complex, dynamic systems where humans and AI agents make interconnected decisions under unpredictable conditions.

Many CSCOs tell us they face considerable pressure from boards and operating committees to make rapid progress. Although this transformation will probably happen faster than many expect, it will not happen overnight. A multi-year roadmap is needed to build the necessary governance and workforce capabilities.

Remember when CSCOs were asked whether they were running a shadow IT group to support operations? Well, it’s back, but it is no longer in the shadows.

CSCOs now spend less time debating who owns analytics and tailored solutions. Instead, they discuss master data governance and whether it is good enough. The conversation then turns to using technology to solve problems. That is not new, but the source of the solutions may be changing.

The search still begins with traditional technology providers. When available solutions do not fit, however, the build-versus-buy question is reentering the discussion. We are seeing early signs of applications developed and owned in-house by the supply chain organization, with the CIO’s full support.

AI is highly capable of writing applications and can dramatically reduce deployment time. But, as with in-house applications written years ago in Fortran or COBOL, maintenance and revisions follow. Agents may make it easier to sustain these applications than in the past, but we do not yet know where this trend is headed.

Will this approach continue to expand and become standard practice? Time will tell, and it may tell us sooner rather than later.

We used to say that people needed to reinvent themselves as conditions changed. I believe we have entered an era of upgrades rather than reinvention. CSCOs need new capabilities and a new mindset to meet enterprise goals.

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