RESILIENCE “Resilience is being able to prevent what you can , harnessed with the ability to manage what you can’t ”
Types of disruptions organisations have experienced in the past 12 months (regions)
Disruptions The most frequently experienced disruption reported by 424 respondents was a shortage of workers (e.g. due to Covid), delaying manufacturing or delivery of services. This was reported by nearly 70% of companies. This seemed to affect the Asia-Pacific region more, where the figure was over 76% compared to an average across Europe and North America of 66%. The second most common form of disruption has emanated from uncertainty. Previous demand models were no longer applicable, resulting in a lack of visibility required to forecast and allocate resources. Over half of all companies experienced this, with it being reported more frequently in Asia- Pacific and North America compared
to Europe. Interestingly, feedback was relatively consistent across industries, confirming that planning and forecasting are key components for all sectors. The fast-changing regulatory landscape has also proved a challenge for many companies, with almost half reporting problems due to new regulations implemented due to Covid and geopolitical developments such as immigration controls and the imposition of sanctions. Nearly half of companies reported this, which is much more of an issue in Europe, where the added complexity of Brexit has contributed to disruption for over 65% of companies. Another interesting observation from this analysis relates to demand. This feedback shows that sudden and unplanned increases in demand were considered more of a disruption than a sudden decrease in demand. As demonstrated by the 43% who said increased demand caused problems compared to the 16% that mentioned reduced demand. Mitigation Mitigation starts with a question. Will I be proactive in anticipating what is coming at me – even in very uncertain and fast-moving circumstances? Or will I wait and see
APAC
EMEA
NA
Labour shortages
76%
62%
70%
58%% Lack of visibility for planning 49% 59%
32% Regulatory changes
66%
39%
Increased demand 36%
43%
52%
34% Natural disasters 20%
39%
16% Cyber-attacks 23% 10%
14% 18% Reduced demand 16% Labour disputes 11% 9% 14% Acts of terrorism 2% 2%
of companies have experienced labour shortages. 70%
The last two years’ events have placed a tremendous strain on global and local supply chains. All the evidence points to an extended period of uncertainty and disruption where only the most agile and resilient will be able to limit the impact and continue to grow and prosper. In the supplementary questions added to our 2022 research, we explore the following: • The types of disruptions organisations have experienced in the past 12 months • The approach they adopted to deal with them • The mitigating actions that have been most successful • How confident organisations are in their ability to handle future supply chain disruptions Summary
and then do my best to react? According to feedback, most
The most reported disruption was a shortage of workers, which was experienced by almost 70% of companies. This was closely followed by difficulty in planning and forecasting demand, and changes to the regulatory environment. A majority of companies believe they have been proactive in addressing disruption. The most effective form of mitigation is to increase communication with suppliers and engage in joint mitigation planning. The vast majority of Leaders (88%) are confident that their supplier management programmes will enable them to overcome future disruption compared to an overall confidence level of 58%. Most companies see the biggest future threats to supply chains as cyber-attacks, natural disasters, and a long-term labour shortage.
The approach adopted to deal with disruption
55% of respondents reported major challenges in forecasting demand, and planning. of companies increased their level of engagement with suppliers and joint planning activities. 60%
companies have tried to be proactive and anticipate problems before they occur. 87% of Leaders described their approach as either proactive or very proactive. For Fast Followers, the figure was 70% and Followers 49%. The rest can be portrayed as being in varying stages of a reactive mode.
Leader
Fast Followers
Followers
Strongly pro-active 39% 17% 11%
Pro-active
48%
53%
38%
Neutral 7%
16%
24%
Re-active 5%
15%
20%
Strongly re-active 2% 7%
30
31
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