The Future is Female: Why Women Will Create a More Efficient Supply Chain

Historically, women have held fewer managerial positions and less participation overall in the supply chain than men. However, times are changing — and research is showing that this shift is critical. More and more women are working in supply chain careers than ever before, and are the driving force behind increasingly successful outcomes in the industry.

“I’ve found having diversity on teams leads to better decision-making,” says Beth Ward, Chief Operating Officer, Smart Warehousing, a full-service, 3PL logistics partner that uses Rufus Lab software and wearable technology. “Diversity allows for different perspectives, creating a force multiplier with greater productivity, deeper insights and better business decisions.” More and more research shows that diversifying your workforce — and putting more women at the top — is better for your business and bottom line.

What Studies Are Saying About Why Women Should Lead

A recent study by MIT showed that women are more efficient in logistics planning than men. And to solve for current supply chain challenges, the study recommended that businesses put women in charge of logistics.  Another recent study, which examined the collaboration between retailers and suppliers, looked at certain behaviors between men, women and the way they worked together. While this was only a stimulation, the results certainly suggest that greater gender diversity can greatly improve supply chain efficiency. 

When considering supply chain management, the exercise looked at two key risk factors: inflating future demand and underproducing the products that consumers want. In the experiment, researchers from the University of Arkansas and the University of Akron found that female retailers were much less likely to overestimate the demand for products than their male counterparts. Additionally, male suppliers were more likely to underproduce than female suppliers — although this outcome improved when male suppliers were paired with a female partner. The experiment also revealed that male participants cooperated more when partnered with women, rather than in pairs of only men. More simply put: supply chains, in part, are built on trust — and this exercise showed that participants trusted women more.

“For companies it’s not a matter of simply prioritizing diversity for the sake of having diversity,” Katie Date, leader of the Women in Supply Chain Initiative at the Massachusetts Institute of Technology’s Center for Transportation and Logistics, said of the experiment. “The reality is diversity has been shown to impact the bottom line in a positive way.”

Additionally, a dedication to diversity will not only improve your business's bottom line in the present — but outcomes continue to improve looking into the future. McKinsey & Company’s report, “Diversity Wins: How Inclusion Matters,” asserts that the relationship between diversity on executive teams and the likelihood of financial outperformance strengthens over time. 

More Women Are Rising Through the Ranks — But It's Not Enough

According to a recent survey by Gartner, Inc, women comprise 41 percent of the supply chain workforce in 2021, up from 35 percent in 2016. However, there is less improvement in women in managerial positions. As the supply chain continues to face massive delays and disruptions, coupled with the shortage of supply chain professionals, a clear solution is to put more women in management positions. Adding more women leadership across the supply chain would not only create a more equitable and diverse work environment, but would create stronger, more efficient outcomes, and ultimately, better business. Additionally, as companies are looking to become more agile and resilient, the diverse perspectives of women can help companies move past their legacy mindsets and embrace innovative technologies and trends.

That's what's happening at UPS, Stericycle and Johnson & Johnson’s — notable organizations that have female supply chain executives at the helm. By leading with empathy, cooperation and collaboration, these companies have cultivated a more balanced point of view. 

Attracting and retaining diverse talent is also a priority at Smart Warehousing, says Ward, as is building a culture that supports women throughout their career paths.

“Seeing women in leadership made it always feel achievable for me. In my experience, mentorship through 'Women in Operations' and 'Women in Supply Chain' programs were shaping to my leadership journey," says Ward. "That's why I'm so excited that half of our C-level executives are women and the rising female executives within Smart Warehousing can also see that this is a reality for them.”