Strategy, Talent, & AI: Tim Engstrom, Essendant CSCO, on Navigating Supply Chain Disruption

What does it take to lead a century-old company through digital disruption, workforce evolution, and global uncertainty? Tim Engstrom, SVP & CSCO at Essendant, stepped into his role at a pivotal time – navigating both a significant ownership transition and the onset of a global pandemic.

With visionary leadership and a commitment to innovation, Tim has reimagined supply chain management for the modern era. In this article, he shares insights from his journey at Essendant, along with proven strategies for transformation, talent development, and technology adoption – offering practical guidance for supply chain leaders ready to embrace change.
 

Steering Essendant in Unprecedented Times

For more than a century, Essendant established its reputation as a leader in office and school supplies, furniture, and office technology, later expanding into janitorial supplies, food service disposables, and industrial products through strategic acquisitions. When the pandemic upended traditional work and education models, demand for office products shifted dramatically, and digital transformation accelerated across the organization. “It really changed the behaviors of all of us,” Tim reflects. “Hybrid work environments became the norm, and technologies that we now take for granted didn’t exist before.”

Tim recognized the need to move beyond legacy operating models and adopt more proactive strategies to guide Essendant through uncertainty. “Office products have a very consistent cadence of activity, and it moved into an environment where you have to be really proactive versus just reacting,” he explains. As Essendant advanced The New Way Forward, Tim helped translate the enterprise strategy into supply chain execution by developing and implementing a new operating and delivery model designed to align service, cost, network capabilities, and evolving customer needs. 

“My philosophy is, if you know where you’re going, then you can put in a strategy to get there,” he says. For Tim, it’s essential to start with the “why” and clearly communicate the reasons for change at every level of the organization. From there, the focus shifts to defining “what are we going to do and how we’re going to do it,” ensuring that everyone is aligned and prepared for the journey ahead.
 

Designing Supply Chains from the Customer Backward

With a clear vision for transformation, Tim turned his attention to the heart of Essendant’s operations: its customers. Supply chain strategy, alignment, and execution is his top priority today, and his leadership philosophy is rooted in designing supply chains with the customer’s needs as the starting point.

Essendant’s supply chain is uniquely complex, serving a diverse range of customers across multiple fulfillment models, including stock replenishment, drop ship, and partner-branded fulfillment. Meeting these needs requires a supply chain that can balance service expectations, cost-to-serve discipline, inventory availability, and scalable delivery execution.

Understanding not only Essendant’s customers, but also their end-customers, is critical to delivering value. As Tim puts it, “What I’ve learned over decades is that you really design your supply chain from the customer backward.”

Today’s environment presents ongoing challenges of labor shortages, tariffs, and lingering uncertainty from the pandemic. Tim notes that success requires not just operational change, but a transformation in mindset. He emphasizes the importance of balancing service with cost, rather than pursuing service at all costs.

“It’s about knowing the numbers beyond the numbers, understanding our customers’ strategies and what’s important to them, and creating an effective plan to serve a diverse customer base,” he explains. In summary, Tim’s guiding principle is simple: “Be effective and then efficient.”
 

A New Approach to Workforce Strategy and Talent Development

Tim places equal emphasis on people as a cornerstone of supply chain success. “Supply chains run on the people within the facilities that do the work,” he notes. With a workforce spanning multiple generations, Tim recognizes the importance of meeting diverse expectations – especially as younger employees place greater value on flexibility and technology.

To address evolving workforce needs, Tim has focused on strengthening operational flexibility by developing workforce capabilities. Essendant is implementing a cross-training platform called the Skills Flexibility Matrix, creating the foundation to explore more flexible, employee-centered scheduling practices while maintaining service, productivity, and operational requirements. This interest in workforce flexibility is also reflected in Tim’s doctoral research, which examines hourly warehouse workers’ perspectives on flexible scheduling.
 

You’re not catering to just one group. You’re creating an environment for all to be comfortable and successful.

But flexibility is just one piece of the puzzle. Tim has also established a robust talent development ecosystem at Essendant, guided by the philosophy of “always developing your replacement.” Through lean methodologies and a three-tiered communication strategy, Essendant ensures information flows upward, downward, and laterally across the organization. Daily meetings held for frontline employees, floor managers, and facility leadership – which they refer to as “barrier boards” – help identify performance obstacles. “We feed in information and then we receive information. It’s what I call the three ups and downs,” Tim says.

This approach not only helps corporate leadership identify areas for improvement, but it also uncovers natural leaders and critical thinkers within the workforce. Essendant has partnered with universities to offer opportunities for these employees to earn associate’s, bachelor’s and master’s degrees in supply chain management, paving the way for promotion into leadership roles. The company also runs robust apprenticeship and internship programs with high hire rates, ensuring a strong pipeline for the next generation of talent.

“Starting at the floor level, we put in the culture of developing their replacement, and it took the fear away,” Tim shares. “It has taken the entire group within the supply chain to the next level of development, expanding their horizons of what the art of the possible is.”
 

Embracing AI in the Supply Chain

As artificial intelligence transforms the business landscape, AI is also top of mind for Tim, who has spent the past year exploring its applications to uncover new opportunities. His tiered communication strategy has proven invaluable in educating and engaging the workforce around AI adoption. As he reassures his team, “I don’t see AI replacing you. I see AI replacing some of the tasks you do, allowing you to be more forward-thinking.”
 

AI is a game changer for supply chain.

Tim envisions AI as a catalyst for shifting supply chains from reactive problem-solving to proactive planning. By leveraging AI for forecasting, planning, and network optimization, supply chains can anticipate and address issues before they arise. “Most of us in supply chain react to issues as they happen. If you can predict and solve issues before they happen, you create a robust supply chain,” Tim explains.

He sees AI as a powerful tool to enhance Sales and Operations Planning (S&OP), reduce lead times, and improve in-stock positions. While the potential is significant, Tim acknowledges that there is still much to learn as the organization and industry continue to embrace AI-driven transformation.
 

Advice for New Supply Chain Leaders

Drawing on his experience, Tim offers practical advice for new leaders navigating today’s complex supply chain landscape. He recommends beginning with a “listening tour,” inspired by the book The First 90 Days. “Understand the legacy of your organization and what others are doing outside. Go see where the work is happening and talk to different folks,” he advises.

Tim encourages asking thoughtful questions to uncover opportunities, obstacles, and hidden issues within the organization – and to connect these insights with your own experience and industry research. One of his favorite questions is: “If you were me, what is the first thing you would work on?”

Identifying early adopters is also critical, as their passion and openness to change can drive successful transformation. To guide change management, Tim applies his “10-80-10 rule:”

1. Focus on the 10% who are eager to innovate
2. Recognize that 10% will be resistant to change
3. Engage the 80% who are waiting to see results

He emphasizes that effective communication – especially around the “why” behind any change – is essential for building alignment and momentum across the team.
 

Advancing Together Through Community 

Tim’s journey at Essendant illustrates that supply chain leadership is as much about transformation and innovation as it is about people and connections. By embracing proactive strategies, prioritizing talent development, and harnessing the power of technology, Tim has guided Essendant through unprecedented challenges and positioned the organization for continued success.

Yet, Tim’s vision extends beyond his own company. As a valued Governing Body Member of the Gartner Chicago CSCO Community, Tim believes strongly in the power of peer networks and the collective wisdom of the supply chain community. “It advances all of us because the supply chain is a very tight community,” he says. “If someone has already gone through an activity, others can learn from that. It’s okay to learn from others and not have to create our own journey.”

In an environment where change is constant, Gartner CSCO Communities provide a network for supply chain leaders to connect with peers, exchange insights, and support one another. Learn how you can join your local Gartner CSCO Community today.
 

Special thanks to Tim Engstrom for sharing his time and insights with the Gartner CSCO Community.