Almost 85% of supply chains can't respond to disruptions in 24 hours
Source: Middle East Insurance Review | Jun 2024
A new global survey of 1,800 supply-chain leaders has revealed that average response time for supply chains to respond to disruptions is five days, hindering progress on resiliency and risk mitigation.
The study Supply Chain Orchestration: Leveraging End-to-End Supply Chain Orchestration to Deliver Next Generation Supply Chain Management, Intelligence, and Responsiveness by IDC and sponsored by Kinaxis reveals slow progress in making supply chains more flexible and resilient while also highlighting optimism towards supply chain orchestration tools as a main enabler for the future.
According to the current research, less than one-fifth (17%) of global supply chain leaders said that their companies can respond to disruptions within 24 hours. Highlighting their widespread frustration, a staggering two-thirds (67%) of respondents admit they are not ‘very satisfied’ with their response time.
The global survey exposes the harsh reality that most are struggling to keep their operations agile and adaptable amid an onslaught of disruptions from geopolitical conflicts, natural disasters and other volatility.
While the average crisis response time is a troubling five days, the survey shows performance varies across industries. In the oil and gas sector for example, 28% of respondents said they can mount a response within a day, compared to 15% in life sciences and 14% in aerospace.
The survey found that although respondents in all regions are overwhelmingly not “very satisfied” with their business’s ability to withstand and respond to supply chain shocks, they remain optimistic about technology’s potential to turn the tide, with 97% saying better orchestration tools would have a modest (44%) or significant (53%) impact on supply chain performance. M