New Research Finds 83% of Supply Chains Can’t Respond to Disruptions in 24 Hours
16 April 2024 - 9:00PM
Business Wire
Global survey of 1,800 supply chain leaders
shows average response time is five days, hindering progress on
resiliency and risk mitigation
Despite being one of the biggest lessons from the pandemic era,
a new IDC study* sponsored by Kinaxis® Inc. (TSX:KXS) 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.
According to research, less than one-fifth (17%) of global
supply chain leaders say 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 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. While the average crisis response
time is a troubling five days, the survey shows performance varies
across industries. In the Oil & Gas sector for example, 28% of
respondents say they can mount a response 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,” said John Sicard, president and
CEO at Kinaxis. “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.”
Although respondents in all regions are overwhelmingly not “very
satisfied” with their business’ 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.
Other key findings include:
- Industrial respondents rate their resiliency highest (47%),
while retail (29%) and aerospace (27%) rate themselves lowest
- 42% of consumer product respondents rated their supply chain
orchestration as mature, the highest among all verticals
- 25% of respondents plan to move to new technologies in the next
year to improve resilience
- 33% want supply chain orchestration platforms that offer
AI/genAI capabilities
- 63% view their supply chain as some form of competitive
advantage over the next 12 months, but it drops to 48% across the
next 1-3 years
- 37% said the biggest roadblock to adopting a supply chain
orchestration application was not finding the right vendor
solution
For more information on how Kinaxis’ supply chain management
solutions can help your business, visit Kinaxis.com.
Methodology: Research was conducted in December 2023 by IDC and
commissioned by Kinaxis, surveying 1,800 Supply Chain Leaders
across North America (USA and Canada), Europe (UK, France, and
Germany), and APAC (Japan, Taiwan, India, and Australia).
*IDC InfoBrief, sponsored by Kinaxis, Supply Chain
Orchestration: Leveraging End-to-End Supply Chain Orchestration to
Deliver Next Generation Supply Chain Management, Intelligence, and
Responsiveness (doc #CA52004924, April 2024)
About Kinaxis Kinaxis is a global leader in modern supply
chain orchestration. We serve supply chains and the people who
manage them in service of humanity. Our software is trusted by
renowned global brands to provide the agility and predictability
needed to navigate today’s volatility and disruption. We combine
our patented concurrency technique with a human-centered approach
to AI to empower businesses of all sizes to manage their end-to-end
supply chain network, from multi-year strategic planning through
down-to-the-second execution and last-mile delivery. For more news
and information, please visit kinaxis.com or follow us on
LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20240416805304/en/
Media Relations Jaime Cook | Kinaxis jcook@kinaxis.com
289-552-4640
Investor Relations Rick Wadsworth | Kinaxis
rwadsworth@kinaxis.com 613-907-7613
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