New research from Orange Business Services found that the supply chains in 40% of multinational corporations were unable to cope with the crisis created by the pandemic. The survey of 320 enterprises, focusing on the manufacturing, transport and logistics sectors, revealed that the global crisis has dramatically changed attitudes to risk.
Some 83% of respondents said they are more aware of supply chain risks, such as raw material shortages, manufacturing shutdowns or transport blockages, than 12 months ago. Building resilience and sustainability into supply chains through digitalisation and real-time data insights is a priority for transformation strategies and essential to the survival of many companies.
Nearly eight in 10 say they have accelerated their digital supply chain strategies. In addition, almost 50% of companies surveyed said they are now looking at overhauling risk procurement and risk management strategies within the next two years. Automation is also set to increase in prominence to handle rapidly changing demand levels. Currently 42% of enterprises surveyed say they are using automation to manage risks, and this will double over the next two years. Two out of five respondents to the survey said their supply chain could not cope at the height of the crisis.
“The global health emergency has made organisations accept the fragility of their ecosystems. Critical gaps must be plugged to ensure end-to-end visibility on a global scale and minimize the risk to the business,” said Kristof Symons, Executive Vice President, International, Orange Business Services.