Organizations are increasingly confident that they can withstand the next supply chain disruption, but many lack the processes, visibility, and coordination needed to respond effectively when supply chain incidents happen, new research from BSI finds.
While 81% expect to be better prepared for disruption over the next 12 months, more than half (54%) say their approach to supply chain risk management remains largely reactive. Just 1 in 4 (27%) can take action on the same day when disruption strikes, while 37% did not follow a crisis plan during their most recent disruption.
Drawing on a global study of more than 1,400 managers across supply chain, finance, procurement, operations, and legal functions, the BSI report ‘Building for disruption: the new outlook for supply chain resilience’ raises fears that the gap between intention and implementation could leave businesses exposed to shortages, delays, and higher operating costs.
Over the past 12 months:
- 40% of respondents’ organizations experienced climate-related disruptions.
- 39% encountered transport disruptions.
- 38% were impacted by cyber incidents.
- 38% were affected by conflict, sanctions, or political instability.
- 35% faced component or raw material shortages.
A significant crisis readiness gap exists between intention and execution, says the report, with 45% of organizations planning to undertake cross-functional scenario planning, yet few carrying it out consistently. Even among those with an ‘always-on’ crisis response team, activation can take up to 3 days for 33% of respondents.
Processes, visibility, and silos are holding organizations back
The research suggests that shortcomings in processes, visibility, and cross-functional coordination are preventing organizations from responding effectively to supply chain threats.
- 43% of organizations lack a formal, documented process for managing supply chain risks, and slow or unclear approval processes are preventing decisions being made for more than 2 in 5 (44%), while only 4 in 10 (39%) have clear protocols for cross-functional communication when disruptions arise.
- Effective decision-making is also being hampered by poor visibility, with 38% citing a lack of timely and accurate data as a barrier to responding quickly and confidently to supply chain threats. Just a third (33%) have complete visibility of supplier locations and geographic exposure.
- More than 1/3 (38%) say silos and poor cross-functional coordination are a barrier to effective decision-making, and 28% say they experience conflicting priorities between teams and departments. Only 4 in 10 (38%) say cross-functional teams meet regularly (at least weekly).
What supply chain resilience actions are organizations taking?
Despite the above gaps, organizations are beginning to rethink how they build resilience. Rather than focusing solely on recovering from the last disruption, many are making structural changes to how and where they source, store, and move goods, reflecting a shift towards building long-term resilience in an increasingly volatile operating environment.
Looking ahead to the next 6 months, organizations are actively altering their operations to build resilience:
- 80% plan to increase strategic inventory stockpiles.
- 79% intend to change transport modes.
- 78% are moving to nearshore key operations.
- 33% are seeking new supplier networks.
- 28% plan to reduce product ranges or SKUs.
- 24% expect to shift trade routes entirely.
Emerging supply chain threats
The report highlights additional emerging threats on the horizon. 59% of respondents believe that artificial intelligence will increase the risk of theft and cybercrime in supply chains, yet barely a third (34%) feel fully prepared to handle severe technology failures or cyber incidents. As digital dependencies grow alongside physical supply risks, BSI emphasizes that end-to-end network visibility will be vital for long-term organizational survival.
