Approaching supply chain disruption
In a survey conducted by IDC, supply chain professionals shared their thoughts on the best ways to approach supply chain disruption, with interesting results. Of those surveyed:
Supply Chain Statistics Every Leader Should Be Aware Of
05 May, 2022
We’ve identified the statistics we found to be the most interesting and useful for supply chain leaders in the manufacturing industry. We also pose some questions we think may help you consider your supply chain in a different light.
A quick search of the term “supply chain statistics” reveals a huge number of results. The sheer amount of data and insight related to the supply chain in this current crisis can be overwhelming. Fortunately, FinancesOnline recently gathered several important statistics into one helpful article.
We’ve identified the statistics we found to be the most interesting and useful for supply chain leaders in the manufacturing industry. We also pose some questions we think may help you consider your supply chain in a different light.
60%
thought the best way to approach disruption was to improve efficiency and effectiveness
22%
felt that the best way to approach disruption was to be the disruptor by developing new business models and reimagining old ones
18%
thought the best way to approach disruption was to remain resilient and quickly adapt to market disruptions
Monitoring supply chain effectiveness
Supply chain monitoring isn’t a new thing, but the approach to monitoring the effectiveness of an organization’s supply chain can vary greatly. Based on the results of a survey by GEODIS, here are the most common KPIs leaders use to monitor their supply chains starting with the most common answer, followed by the percentage of respondents who shared that answer:
- Daily performance: 40 percent
- Cost reduction: 35 percent
- Production service rate: 29 percent
- Inventory turn: 28 percent
- Production time: 27 percent
- Lead time: 27 percent
- Return rate: 25 percent
- ROA: 22 percent
Do you monitor any of these KPIs? Are there additional KPIS you think should be on this list?
Technological priorities
Another interesting data set comes from a survey conducted by Forbes, which asked supply chain professionals about their top tech priorities. The responses may surprise you. Have you implemented any of these technologies into your own operations? Are there any other technologies you are currently considering?
41%
of supply chain professionals revealed that they are focused on data analysis technology over all other solutions
39%
of supply chain professionals shared that they are focused on IoT solutions
39%
of respondents are focused on cloud computing over all other technology solutions
Manufacturer’s response to COVID-19
It’s no secret that COVID-19 has dramatically impacted supply chains across the globe. However, it is interesting to examine the different ways businesses have reacted to the pandemic. According to a survey by RetailNext, businesses took the following actions. How did your organization respond to the pandemic? Did you employ any other strategies to keep your business and supply chain moving?
64%
of businesses surveyed revealed that they focused on adapting for ecommerce
56%
renegotiated contracts
28%
tried finding alternative sourcing options
28%
underwent shortages and challenges with stock numbers
Developing supply chain resiliency
If manufacturers have learned anything from the pandemic, it’s that the supply chain needs to be much more resilient than any of us realized. With that in mind, many manufacturers are already planning ways to develop supply chain resiliency. According to a supply chain resiliency survey conducted by McKinsey, here are the most popular plans of action. Have you considered any steps to increase the resiliency of your supply chain? Do any of these approaches make sense for your business?
53%
plan to develop multiple sources for their vital raw materials
47%
plan to increase inventory of mission-critical materials and products
40%
plan to significantly expand their supplier base
38%
plan to create a more regionalized supply chain
30%
plan to reduce the number of products they offer
Identifying the common theme
While these statistics cover wide range of topics and scenarios, one thing is clearly demonstrated by the numbers: the future of the global supply chain has been forever changed by the pandemic. Moving forward, many manufacturers will take a much different approach to supply chain management, integrating smarter, more efficient ways to keep materials and products flowing across the globe.
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How to Develop Supply Chain Resiliency
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