The diverse and successive nature of supply chain shocks is challenging every organization. Combine that with the high costs associated with disruptions and businesses have a loud and clear wake-up call: better supply chain risk management and improved monitoring are critical needs in today’s environment.
It’s therefore no surprise that supply chain risk management and resilience are going to become increasingly important to organizations. Our new whitepaper, “Supply Chain Disruptions and the High Cost of the Status Quo,” based on a survey of 900 enterprise decision makers about their risk management practices, found:
- 50% of all surveyed organizations say supply chain risk management (SCRM) and resilience will be their top business priority in two years’ time—while just 39% say they are top priorities today.
As SCRM becomes more critical, the frequency with which those at the board-of-director level discuss the topic reflects this. Overall, over two-fifths of boards (21%) are talking about supply chain risk on at least a weekly basis, with 78% doing so at least monthly.
Supply Chain Visibility
A crucial element of supply chain risk management is the level of visibility that organizations have throughout their supply chain. The less the organization can see across its supply chain, the less it can accurately predict. Intuitively, organizations experience more significant fallout due to disruptions when visibility into their supply chains is lower.
With that being said, it’s not a surprise that the vast majority (88%) of organizations say visibility into their global supply chain is more important now than it was two years ago. The succession, and at times, overwhelming number of recent shocks and related impacts demands that greater importance is placed on visibility.
However, while decision makers note the value that visibility into supply chains can provide them, this does not necessarily translate across the different tiers in an organization’s supply chain.
In fact, visibility levels drop off sharply below the second tier of organizations’ supply chains:
- 80% say their organization has instantaneous visibility/the ability to continuously monitor their supply chains in the second tier
- This drops to only 50% at the third and fourth tiers, and only 22% say they can do this at the ninth tier and below
Get More Data on SCRM/TPRM Practices and Improving Risk Mitigation
Our paper goes into more detail on the importance of visibility and supply chain risk management needs, as well as what current practices are helping organizations mitigate risk and which are not up to the task. Get all the insights here.