Companies are far too slow at analysing supply chain scenarios

Geopolitical tensions and trade restrictions are forcing companies to reassess their supply chain networks. Only 18 per cent can model a major network change within a few days; most companies need weeks to do so. However, organisations that carry out scenario analyses on an ongoing basis are considerably faster. This is according to international research by Supply Chain Media and software provider Optilogic, involving 144 supply chain professionals.

Geopolitical instability, trade restrictions, import duties, inflation, rising costs, transport problems, fluctuations in demand, AI… The current list of threats to international supply chains is long. According to the report ‘The supply chain you have vs. the one you need’, this calls for structural adjustments to supply chain networks rather than merely better operational planning.

With hindsight, many companies could have managed their disruptions more effectively. When asked what would have made a difference during the biggest disruption of the past two years, 29 per cent cited better scenario modelling capabilities. Faster access to data (23%) and better insight into the supply chain network (19%) followed. Only 8 per cent felt that their own organisation was sufficiently prepared.

The speed at which companies can assess alternative supply chain networks appears to be a major bottleneck. Only 18 per cent can simulate a major network change within a few days or hours. For 57 per cent, this takes between one and six weeks, whilst a quarter require more than six weeks.

This story was originally published by Supply Chain Movement. Read the full story at Supply Chain Movement →