New Research Finds 83% of Supply Chains Can’t Respond to Disruptions in 24 Hours

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. 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.

“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”

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.

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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. 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.”

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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

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AI-enhancedcutting-edgeDisruptionsgeopolitical conflictshighlighting optimismidc studyKinaxisnatural disastersNewssupply chain orchestration toolsSupply ChainsSurveyvolatility