Why the Next Supply Chain Leader Should Be a Woman

Many industries face a significant gender gap for those in power. Only 4.9% of Fortune 500 CEOs and 2% of the top 200 companies' CEOs are women. There is a real opportunity to drive improvements for leadership positions in supply chain specifically. A McKinsey survey found that women make up 41% of entry-level supply chain employees, but only 17% hold senior VP or C-suite roles.

In fact, supply chain has had a gender-diversity problem for some time. In the 2011 SCM World survey, only 19% of supply chain managers were women, a figure that hasn’t changed significantly in the years since.

Why does supply chain need more women in leadership?

Supply chain benefits when there is diversity in teams and leadership. Diverse teams make better decisions: teams who take a wide variety of perspectives into account when solving problems consistently outperform teams with a lack of diversity. In short, diverse teams have fewer blind spots when it comes to problem solving.

This is clearly relevant in supply chain, where success depends on anticipating and adapting to an incredibly diverse set of variables. Given the diversity of challenges, it follows that having a diverse leadership team is likely to be advantageous: A team that includes people who have had many diverse life experiences will be better able to anticipate both consumer behavior and the complications that can arise in global supply chains.

What are the barriers preventing women from advancing in supply chain?

The barriers to advancement for women in supply chain are similar to those in other industries. Many supply chain roles, especially at the higher levels of management, are seen as “boys’ clubs,” and women who aspire to these roles often face an implicit bias that limits their opportunities for advancement.

Mentorship and sponsorship are also important factors: women who do advance tend to have had strong mentors and sponsors who advocated for them. Without these advocates, women may be overlooked for key opportunities.

How can companies attract and retain women in supply chain?

There are several steps companies can take to attract and retain women in supply chain. These include creating a culture of inclusion, offering flexible work arrangements, providing mentorship and sponsorship programs, and actively recruiting women for supply chain roles. Companies that take these steps are more likely to attract and retain talented women in supply chain, which will ultimately lead to better performance and outcomes.