Around 83% of supply chains cannot adapt to disruptions within a 24-hour timeframe, according to a new IDC study sponsored by Kinaxis® Inc.
Phillip Teschemacher, Asia Pacific (APAC) president at Kinaxis, said this highlights the urgent need for increasing resilience and risk management with the influence of supply chains over businesses.
“In this landscape, there lies a significant opportunity for improvement. Companies can work on improving visibility, increasing collaboration, and advancing towards orchestration to enable Chief Supply Chain Officers to automate decision-making across the entire enterprise,” commented Teschemacher.
Responding to disruptions
The study of 1,800 supply chain decision-makers globally revealed that only 17% of global supply chain leaders say their companies can respond to disruptions within 24 hours, while 67%) were not “very satisfied” with their response time. To strengthen resilience, respondents plan to move to new technologies next year (25%).
Optimism with technology
The majority (97%) of the respondents are optimistic that better orchestration tools would have a modest (44%) or significant (53%) impact on supply chain performance.
Around 33% want AI-powered supply chain orchestration platforms, with 63% viewing their supply chain as a competitive advantage over the next 12 months, and drops to 48% across the next 1-3 years.
Being unable to find the right vendor solution is the top roadblock to adopting a supply chain orchestration application, according to 37% of respondents.