The BCI has released its annual Supply Chain Resilience Report, this year sponsored by Everstream Analytics. The report ‘looks at the current status of supply chains across the globe and how they have been impacted by the events of the last 12 months’.
Key findings from the report include:
- More organizations than ever are now using technology to assist with supply chain management and mapping: More than half (55.6 percent) of organizations are now using technology to help analyse and report on supply chain disruptions. More than half of organizations (57.6 percent) report that COVID-19 has been the reason for investment in new technology and tools.
- The number of supply chain disruptions organizations encountered in 2020 was higher than any other year in the report’s history: 27.8 percent of organizations reported more than 20 supply chain disruptions during 2020, up from just 4.8 percent reporting the same number in 2019. Organizations blamed COVID-19 for the dramatic increase in the volume of disruptions, although European respondents also reported disruptions due to Brexit-related issues.
- COVID-related disruptions were more likely to occur beyond tier 1: the importance of knowing your suppliers’ suppliers was emphasised this year when respondents reported that 40.2 percent of COVID related disruptions were due to disruptions in tier 2 and beyond.
- Senior management are now more engaged with supply chain issues: 82.7 percent of respondents report management commitment to supply chain risk is now “medium” or “high”; up nearly 10 percentage points on 2019.
- Organizations are now more likely to interrogate the business continuity arrangements of critical suppliers: more than three-quarters of organizations (75.2 percent) report checking that key suppliers have business continuity arrangements in place, up from two-thirds in 2019.