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How to Build a High-Performing Supply Chain Network Design Team Published 7 December 2023 - ID G00797527 - 14 min read

By Analyst(s): Vicky Forman, Ronak Gohel

Initiatives: Supply Chain Transformation

Using technology for supply chain network design only succeeds

with a well-balanced, diverse and capable team in place. Supply

chain leaders can use this research to determine the roles and

skills required for supply chain network design to support quality

decision making.

Overview

Key Findings

Recommendations

Supply chain leaders responsible for network design teams should:

Not having clearly defined roles and responsibilities for network design creates

conflicting priorities and capacity constraints, resulting in a lack of focus.

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Network design is not just about modeling. Hiring based on technical skills alone

can have a detrimental effect on the quality of deliverables.

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Piecemeal hiring can lead to gaps in knowledge and processes and lack of diversity

in approaches, which limits innovation and the ability to create value.

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Turnover of network design personnel creates challenges for project continuity and

timeliness of deliverables.

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Promote continual focus on individual priorities. Define key tasks, deliverables and

skills for the team and create roles with limited overlap.

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Hire candidates with more than modeling experience by aligning skills to project

needs and knowledge gaps in the existing team.

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Introduction As reviews of the supply chain network design become ever more frequent and high

profile, companies are creating and expanding internal network design capabilities.

Supply chain network design leaders with mature and well-established capabilities, and

those leading less mature teams, are looking for network design talent. According to the

2023 Gartner Harnessing Analytics ROI in Supply Chain Survey, 1 41% of supply chain

organizations are currently deploying advanced analytics in the form of end-to-end

network modeling, with an additional 48% planning to deploy in the next two years.

Network design roles are difficult to hire for. In a labor-constrained environment, taking a

team-based approach to hiring and being laser-focused on key skills requirements are

essential to ensuring the team’s success.

Most network design teams use one of the supply chain network design tools available

(see Market Guide for Supply Chain Network Design Tools). Talented individuals are

required to get the most from these tools and generate quality deliverables. However,

candidates must be more than just modelers — the modeling phase is only one part of the

project. One network design manager described modeling activities as no more than 20%

of the overall time and effort expended on a project (see Define Your Optimal Supply

Chain Network Using 3 Pillars of Network Design: Part 1 — Initiate and Plan). 2 Without

good communication, problem solving, data skills and the ability to translate a business

problem into a model, modeling skills are moot. A great model or analysis is useless

unless the outcomes and recommendations can be presented clearly to decision makers.

Importantly, network design cannot be successful as a solitary activity. It is essential to

have a team structure that supports diversity and fosters collaboration and innovation,

along with planning for progression and turnover to ensure continuity.

When defining the team structure and required capabilities for a new team, consider that

creating mature capabilities is a journey. However, starting from a foundation of best

practices in hiring and standard frameworks and processes will enable this growth and

increase the organization’s maturity.

Ensure diversity and balance by hiring people from a range of backgrounds,

experience levels and industries.

■

Plan for turnover and progression by creating a team structure that supports growth

and ensures success, even when team members transition out.

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Analysis

Define a Team Structure With Clear Roles and Responsibilities

The highest-performing network design teams typically consist of several roles with

defined responsibilities that complement each other. Teams with little variation among

roles and that have individuals with many responsibilities typically don’t perform as well

as those with defined roles and responsibilities. 2 Promoting focus on key tasks and

defining roles and responsibilities limits overlap and ensures an efficient division of labor.

Divide Core Responsibilities and Skills Across the Team

Supply chain leaders can often fall into the trap of attempting to hire individuals who

possess an ideal set of skills, competencies and experiences. This is not a sustainable

practice. Instead, divide core responsibilities and skills across the team, rather than having

every employee perform the same tasks. This creates a team that collectively has the

required skill sets (see Figure 1).

Figure 1: Design Roles With Limited Overlap to Cover the Work More Efficiently

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Table 1 describes roles and responsibilities most common in network design teams.

Table 1: Common Roles and Responsibilities in Network Design Teams

(Enlarged table in Appendix)

Document Tasks and Skills Required for Each Task

To ensure efficient role design in the network design team, document the work to be done

and the skills required to do it. It is common to separate tasks based on specializations,

with different roles for data processing, modeling, and communication and project

management. While the team is growing, it may be essential to include subject matter

experts (SMEs) from other areas of the business to conduct noncore activities. This frees

up capacity within the team and draws on specialist skills and experience.

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The degree of separation between roles depends on the size of the team, the project

pipeline, and the diversity of skills and interests. As teams become larger and processes

are better defined, the segregation of roles becomes more defined.

Not all teams need all roles. The coach and project manager roles are typically seen in

larger, more mature teams, where the complexity of the modeling or the number of

projects becomes too great for the other team members to manage. In smaller teams, the

manager often takes on project management responsibility and the senior modelers take

on some of the coaching. Additionally, in cases where internal network design capabilities

are new, the coach role can be outsourced on a project while building the internal team’s

capabilities. This is not a long-term solution for this role but an initial starting point.

Hire Candidates With Skills Beyond Modeling Experience

As roles and responsibilities differ, so do required skills and proficiency levels. Not all

members of the network design team need to be modelers or even analytical. One supply

chain leader looking for a network design modeling manager was specifically hiring

managers with no modeling experience. This was to avoid lines being blurred between the

modelers and the manager. Otherwise, the manager might get pulled into data collection

or modeling to meet deadlines and neglect his or her core responsibilities. We recommend

hiring candidates with more than modeling experience and ensuring teamwide coverage

of the key skills required.

The core range of skills required in a network design team include five elements:

These core skills are often covered by a range of roles with various levels of proficiency,

experience and seniority. See Figure 2 for the common skills and proficiencies required

within each role.

Data — Ensuring the availability and quality of data needed for network design.■

Technology — Performing complex data discovery and exploration, and building

network models using appropriate technology and algorithms.

■

Projects — Prioritizing initiatives, communication, stakeholder management and

value tracking.

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Education — Fostering innovation and self-service enablement, along with related

knowledge management activities.

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Domain — Supply chain experience and business context.■

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Figure 2: Common Network Design Team Skills Evolution by Role

Look for Modeling Potential in Addition to Modeling Experience

In a talent-constrained market, looking beyond traditional skill sets can be an advantage.

This can help in finding resources quickly and in filling skills gaps in the existing team.

Traditionally, modeling or analytical experience was sought as a primary requirement,

even for junior roles, but this is becoming less true. Hiring managers are increasingly

seeking critical thinking, drive and the ability to learn instead of proven modeling skills.

Provided the employer has the onboarding and learning and development resources to

hone a candidate’s potential, they will have a larger pool of candidates than their

competitors.

Hire Candidates With the Skills to Communicate Recommendations Effectively

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Skills such as communication, cross-functional collaboration and teamwork are included

in a majority of job descriptions for all levels within the team. 3 This signals that the

traditional view that modelers should be hidden away and focus entirely on analytics is

disappearing in favor of finding people who can communicate effectively. Poor

communication and stakeholder management are common reasons that network design

initiatives fail (see Top Reasons Why Supply Chain Design Initiatives Fail and What to Do

About It).

Ensure a Diverse and Balanced Team by Hiring From a Range of Backgrounds and Experience Levels

Few very successful network design teams have just one resource. Teams typically

consist of two to 20 analysts, with many companies having about five. As the team’s

workload increases, so does its size, supported by efficient and automated processes.

Some smaller teams do operate at a high maturity level and are very effective. However,

the size of the team must be aligned to the work requirements and value generated. An

over-resourced team will struggle to demonstrate enough value and may not have enough

new challenges to keep team members engaged (see Drive Recognition for the Value of

Network Design With a Robust Value Tracking Process).

High-maturity teams hire from a wide variety of backgrounds and experiences. This

diversity ensures different approaches to problem solving and can generate new ways of

thinking or working. This is essential because modeling is as much an art as it is a

science. If you give 10 modelers the same complex problem to solve, they are likely to take

several different approaches, all valid and all with similar recommendations. Some will be

more efficient or elegant than others, but this variety fosters innovation and collaboration

and reduces the risk of groupthink, ultimately resulting in higher-quality outcomes.

Common backgrounds for analysts include:

Fresh college graduates with quantitative qualifications eager to learn modeling,

supply chain and the business

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Internal hires transferring from more operational areas such as distribution or

manufacturing operations who bring business-specific knowledge and experience

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Experienced modelers from competitors who bring external perspective to common

challenges

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Experienced modelers from unrelated industries who bring fresh but applicable ideas■

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Plan for Team Turnover and Progression

Team turnover is inevitable, according to the 2023 Gartner A New Leadership Perspective

on Turnover Survey. 4 It reports that 75% of supply chain professionals believe voluntary

turnover is more likely to increase in the next five years. You must plan for departures. The

aim for a successful team is to continue after any one person leaves and to develop

people and encourage them to move into new roles, inside and outside the team. When

done well at scale, Gartner calls this healthy dynamic the internal labor market. The idea is

that it’s better to “lose” your talent internally rather than to competitors (see Supply Chain

Executive Report: Your Employees Will Leave; Embrace the Turnover).

Enable Innovation, Collaboration and Knowledge Sharing

As a team environment is fostered and communication among analysts is encouraged,

natural knowledge sharing will occur and common processes will be implemented.

However, this organic process is not enough to enable seamless handover of projects and

initiatives. To prepare for these transitions, enable a team structure that supports formal

knowledge capture, peer learning, and learning and development opportunities. Upskill

employees into new roles and backfill and onboard colleagues into the roles they vacate.

These are some examples of these initiatives:

Define a Team Structure That Supports Progression and Plans for It

Supply chain consultants, with or without modeling experience, who bring a wide

range of industry and supply chain experience

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Experienced supply chain operators with analytical skills who bring practical

experience to theoretical exercises

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Modelers record short videos describing an element of the model approach or data

processing procedures. This removes the need for lengthy written documentation.

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Frequent innovation team meetings are held to share ideas and challenges.■

Multilevel succession planning is determined by leadership. A backup is identified

for all team members, with regular upskilling and cross-training.

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Hiring efforts are focused on lower grades and promoting from within.■

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Some teams have high turnover because individuals reach a point where they don’t see

opportunities to progress. Defining a team structure with various roles to allow upward

and sideways movement into specialist or mentoring roles can increase opportunities. A

network design team with a history of alumni being promoted into senior roles will attract

high-caliber applicants. The team will be seen as attractive to work for because of its

progression opportunities. Senior roles such as the coach and project manager are

examples of opportunities that help retain top-performing talent and knowledge.

However, not all modelers make great managers, and there must be a way for these

individuals to progress without being forced into management. In some cases, analysts

who have taken on modeling manager jobs have reverted to technical roles after

determining that is where their skills and interests lie.

Evidence 1 2023 Gartner Harnessing Analytics ROI in Supply Chain Survey: This study was

conducted to investigate and gather information on various aspects of data and analytics

in supply chain management. Specifically, the study aimed to identify the success criteria

and best practices for achieving positive returns on investments in data and analytics, as

well as the critical challenges in building and improving data and analytics competency.

The research was conducted online from March through July among 312 respondents

from North America (n = 115), Western Europe (n = 118) and Asia/Pacific (n = 79).

Qualifying organizations reported enterprisewide annual revenue for the most recent fiscal

year of at least $500 million. Qualified participants were employed as full-time supply

chain professionals in roles with a business focus, IT focus or a blend of IT and business

focus. Disclaimer: Results of this study do not represent global findings or the market as a

whole, but reflect the sentiments of the respondents and companies surveyed.

2 Gartner conducted interviews from December 2021 through March 2022 with 10

companies that have internal network design teams, in addition to hundreds of client

inquiries on network design.

3 Gartner analyzed more than 150 job descriptions for network design roles posted

between April 2021 and March 2022, across various industries, regions and job levels. It

also analyzed 30 more job descriptions posted between February 2023 and October 2023.

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4 2023 Gartner a New Leadership Perspective on Turnover Survey. This survey was

conducted to investigate the impact of various organizational behaviors and models on

turnover-related outcomes in supply chain organizations. The research was conducted

from 22 May through 19 June 2023. In total, 336 respondents completed the survey

globally. Qualifying organizations operated in industries with supply chains. Qualified

participants were supply chain leaders (nonindividual contributors) whose roles were tied

to a supply chain function and were in manager roles or above. Respondents were

surveyed on their attitudes toward turnover as well as the status of their supply chain

organization in areas such as the level of disruption caused by turnover, interactions with

alumni, offboarding and onboarding procedure, knowledge management processes,

learning and development, and skill leverage. Disclaimer: The results of this survey do not

represent global findings or the market but reflect the sentiments of the respondents and

companies surveyed.

Document Revision History How to Build a High-Performing Supply Chain Network Design Team - 26 May 2022

Recommended by the Authors Some documents may not be available as part of your current Gartner subscription.

Define Your Optimal Supply Chain Network Using 3 Pillars of Network Design: Part 1 —

Initiate and Plan

Top Reasons Why Supply Chain Design Initiatives Fail and What to Do About It

Ignition Guide to Sourcing High-Quality Supply Chain Talent

Tool: Guide to Use Cases for Network Optimization Capabilities

Case Study: Customizable Team Role Designs (UCB)

Tool: The Case to Embed Network Design in Supply Chain Decision Making

Supply Chain Executive Report: Your Employees Will Leave; Embrace the Turnover

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Table 1: Common Roles and Responsibilities in Network Design Teams

Role Description

Leader, Supply Chain Network Design

Network Design Project Manager

Leads and develops the network design team. Drives the vision, including what is in and out of scope.

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Manages the team, prioritizes and reprioritizes initiatives to align with supply chain strategy and available resources, measures success using performance metrics and communicates with business partners.

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Defines standardized process and governance for the team to ensure best practices are followed.

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Supports team members with stakeholder relationships. Ensures activities such as data collection and assumption signoff are completed in a timely manner.

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Serves as a key point of contact to coordinate projects evaluating the supply chain design.

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Manages the network design project, ensuring appropriate time and resources to meet business objectives.

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Communicates with wider business stakeholders (including providing documentation) and drives process improvements.

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Leads project review meetings and coordinates project status updates.■

Can navigate competing priorities and projects.■

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Source: Gartner (December 2023)

Network Design Coach

Senior Supply Chain Network Design Analyst

Supply Chain Network Design Analyst

Supports hand-over to the implementation team.■

Subject matter expert in modeling techniques and supply chain with institutional credibility.

■

Acts as a liaison between network design analysts and supply chain users.■

Trains users, ensuring projects are successful.■

Serves as quality assurance and identifies additional opportunities for continuous improvement.

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Leads modeling projects from introduction to delivery of modeling results.■

Participates in modeling strategy sessions with senior leaders.■

Responsible for understanding data requirements, data gathering and cleansing.

■

Responsible for optimization or simulation model building, and validation.■

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