Updated Date: 05 August 2023

“Hiring and promoting talented women is economically imperative for society”, said Carlos Ghosn, Chairman of the Renault-Nissan Alliance.

But such was not the scenario in supply chain management even a few years ago. The sector had only 14% of women executives and a handful of female professionals striving to drive growth. Of course, there were exceptions. Women like Lillie Elizabeth Drennan, Edwina Justus, and Melonee Wise challenged the not-so-glamorous sphere and made way for gender diversity. However, they faced hard times obtaining licences, respect, and cooperation.

Fortunately, situations have improved gradually in every industry, and SCM and the logistics sector are no exception. The USA currently fosters almost 33,269 supply chain leads, 28.5% of which are women, occupying a quarter of VP-level positions. Again, women govern 20.37% of businesses and brainstorm, innovate, initiate, and contribute to economic development.

But why should the supply chain involve more women minds to boost business growth?

Because women nurture a natural instinct for procurement and inventory management, they are more resilient, adaptable, and determined to drive innovation. They also have a higher Emotional Quotient (EQ) and empathy to build stronger relationships with business professionals. That’s why personalities like Stéphanie Foucart, Julie Amasse, Sheri Hinish, Rosemary Coates, and Kelly Barner have become ‘Women in Supply Chain’ faces, and Indian entrepreneurs like Bhairavi Jain and Komal Adhikari have transformed the logistics landscape with innovation, experience, and expertise.

The Supply Chain should involve more women for growth and innovation

McKinsey estimated that if women are included more in supply chain management, they can contribute $28 trillion annually to the global GDP by 2025. They collaborate more efficiently with retailers, suppliers, and logistics professionals. Thus, having them in the supply chain sector has several benefits, of which these are the three most important ones:

Savings and Productivity: During the pandemic, “most women worked one shift for office and another shift for home.” They contributed to decision-making, cost savings, and improved productivity in both realms. So, involving more women in the value chain and improving their access to products and services are likely to generate 4:1 ROI and 20-30% increased productivity.

Innovation: Women put forward fresh ideas, contribute to problem-solving, and provide honest opinions during decision-making. A POMS study revealed that women are driven less by self-interest and opportunism and more by coordination and cooperation with their stakeholders. They can perceive the big picture better and collaborate with buyers and suppliers to maximise mutual benefits.

Business growth: In the Indian MSME realm, women leaders like Sarita Das, Alpana Bhargava, Monika Mittal, and Poroma Munshi Rebello contribute about 23.3% of the labour force. They can deal with risks more efficiently, forecast the uncertain business environment, and take effective initiatives for problem-solving. Consequently, women-led businesses are recently experiencing a 114% growth over 20 years ago.

What awaits the future for women in supply chain management?

McKinsey’s report, “Diversity wins: How inclusion matters”, suggests that companies with greater gender diversity have higher probabilities of positive business performance. Women are challenging legacy-focused mindsets, embracing innovative and automated technologies, and adapting efficiently to shifting regulations and industry trends.

In 2022, women comprised 39% of the global supply chain workforce, with 19% in C-level positions. The expansive industry is booming with opportunities for transformative women to contribute to its economy and facilitate growth in the future.