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 twelve months ago. The pandemic has woken them up and made them realize they need more speed, agility and innovation to cope with change. Building resilience and sustainability into supply chains through digitalization and real-time data insights is a priority for transformation strategies and essential to the survival of many companies.
Reinforcing the supply chain
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.