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83% of supply chains are unable to respond to disruptions within 24 hours, according to a recent global study conducted by IDC
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The study reveals slow progress in making supply chains more flexible and resilient while also highlighting optimism towards supply chain orchestration tools as a key enabler for the future
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On average, companies take five days to mount a crisis response
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Only 17% of global supply chain leaders are confident their companies can respond to disruptions within 24 hours
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Around two-thirds (67%) of respondents admit they are not “very satisfied” with their response time
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The comprehensive survey of 1,800 supply chain decision-makers from around the world 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
A staggering 83% of supply chains are unable to respond to disruptions within a 24-hour timeframe, according to a recent global study conducted by IDC and sponsored by Kinaxis Inc.
Despite efforts to enhance flexibility and resilience in the aftermath of the pandemic, the research underscores the significant challenges faced by supply chain leaders worldwide while also highlighting optimism towards supply chain orchestration tools as a key enabler for the future.
An overwhelming 97% believe that better orchestration tools could have a substantial impact on supply chain performance.
Additional insights from the survey include:
- Industrial sectors rate their resiliency highest (47%), while retail (29%) and aerospace (27%) sectors rate themselves lowest
- 42% of consumer product respondents consider their supply chain orchestration mature, the highest among all verticals
- 25% of respondents plan to adopt new technologies within the next year to enhance resilience
- 33% seek supply chain orchestration platforms with AI/genAI capabilities
- While 63% view their supply chain as a competitive advantage over the next 12 months, this figure drops to 48% over the next 1-3 years
- 37% cited difficulty in finding the right vendor solution as the biggest obstacle to adopting a supply chain orchestration application
According to the study, only 17% of supply chain decision-makers believe their companies can effectively respond to disruptions within 24 hours. This slow response time has left two-thirds (67%) of respondents not “very satisfied” with their organization’s ability to address disruptions promptly.
The survey, which polled 1,800 supply chain leaders globally, highlights the pervasive struggle among industries to maintain agility amid geopolitical conflicts, natural disasters, and other sources of volatility.
On average, companies take five days to mount a crisis response, with performance varying across sectors. For instance, the oil and gas sector leads with 28% of respondents reporting the ability to respond within a day, compared to 15% in life sciences and 14% in aerospace.
“It’s more common than ever on quarterly earnings calls to hear that supply chains make or break success and this data proves that there is a tremendous opportunity across all sectors to improve resilience and risk mitigation,” John Sicard, president and CEO at Kinaxis said in a statement.
“Cutting-edge, AI-enhanced, end-to-end orchestration tools that enable companies to gain transparency, agility and improved collaboration can help address these compounding trends and make chief supply chain officers the heroes instead of the scapegoats the next time trouble appears on the horizon,” he added.
