The new Supply Chain Resilience Report from the Business Continuity Institute is out now. This survey is a well-established benchmark for any organization that wishes to thrive in modern markets and is aware of the importance of securing its supply chain. This year’s edition is heavily influenced by the ongoing pandemic, reporting on how supply networks around the world are trying to address current challenges.
The first major trend emerging from the report is a greater uptake of technology solutions compared to last year, as a response to Covid-19, which increased the number of disruptions especially beyond Tier-1. In addition, worldwide restrictions have affected all types of travel, from road transport to cargo planes, adding a further layer of difficulty to the movement of goods.
Organizational processes appear to be more focused on supplier requirements now. For instance, participants report both higher top management commitment than last year and better engagement with suppliers during the tendering process. However, the study shows that beyond Tier 1 the levels of tracking and mapping drop significantly. This is not necessarily a negative trend, as ideally the requirements of Tier 2 suppliers should be verified by those at Tier 1.
One of the most relevant takeaways from this report is definitely the impact of the human factor in modern supply chains, since the top five causes of disruptions include, among others, human illness, lack of key staff, and health and safety incidents. This trend is also confirmed by respondents as one of the main concerns for the next five years, revealing that it is time we think about supply chains as a living and breathing organism that is more than a series of processes.
Overall, the report is highly recommended, especially during such unpredictable times. Here you can find the link to download it.