Dun & Bradstreet has released its Q1 2024 Global Business Optimism Insights report. The quarterly report shows a downturn in global supply chain continuity due to geopolitical tensions, trade disputes, and climate-related disruptions in maritime trade causing both higher delivery costs and delayed delivery times.
The report also indicates that businesses—having endured multiple challenges such as the pandemic, conflicts, and monetary tightening—are now adopting a growth mindset, as reflected in the overall optimism index.
Business leaders are looking at growth opportunities and risks through multiple lenses, as substantiated by Dun & Bradstreet’s report. While concern remains over the global supply chain, businesses appear to have a higher tolerance for potential risk and greater adaptability, as a result of their experience managing disruption over the past few years.
The Global Supply Chain Continuity Index
The Global Supply Chain Continuity Index fell sharply by 6.3% for Q1 2024 compared with Q4 2023, with suppliers’ delivery time and delivery cost indices both deteriorating. Executives also report that climate-induced disruptions and trade disputes are contributing to decreased optimism. This index declined equally for both advanced and emerging economies, with each receding 6% from the last quarter.
One in three firms are considering diversifying their supply chains to multiple sources and multiple regions as their top priority, while one in four is considering improving supplier communication and consolidation as the key priority to ensure seamless supplies. Other key supply chain themes have been relying on localization to avoid supply chain hassles, adopting more resilient supply chain models, and incorporating ESG into sourcing decisions.