New Research Finds 83% of Supply Chains Can’t Respond to Disruptions in 24 Hours
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OTTAWA, Ontario -- Businesswire -- Despite being one of the biggest lessons from the pandemic era, a new IDC study[*] sponsored by Kinaxis® Inc. (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.kinaxis.com%2Fen&esheet=53928855&newsitemid=20240416805304&lan=en-US&anchor=Kinaxis%26%23174%3B+Inc.&index=1&md5=5f21408f34e3012b0261896cdb3a840a) (TSX:KXS) reveals slow progress in making supply chains more flexible and resilient while also highlighting optimism towards supply chain orchestration tools as a key enabler for the future.
According to research, less than one-fifth (17%) of global supply chain leaders say their companies can respond to disruptions within 24 hours. Highlighting their widespread frustration, a staggering two-thirds (67%) of respondents admit they are not “very satisfied” with their response time.
The comprehensive survey of 1,800 supply chain decision-makers from around the world exposes the harsh reality that most are struggling to keep their operations agile and adaptable amid an onslaught of disruptions from geopolitical conflicts, natural disasters, and other volatility. While the average crisis response time is a troubling five days, the survey shows performance varies across industries. In the Oil & Gas sector for example, 28% of respondents say they can mount a response within a day, compared to 15% in life sciences and 14% in aerospace.
“It’s more common than ever on quarterly earnings calls to hear that supply chains make or break success and this data proves that there is a tremendous opportunity across all sectors to improve resilience and risk mitigation,” said John Sicard, president and CEO at Kinaxis. “Cutting-edge, AI-enhanced, end-to-end orchestration tools that enable companies to gain transparency, agility and improved collaboration can help address these compounding trends and make chief supply chain officers the heroes instead of the scapegoats the next time trouble appears on the horizon.”
Although respondents in all regions are overwhelmingly not “very satisfied” with their business’ ability to withstand and respond to supply chain shocks, they remain optimistic about technology’s potential to turn the tide, with 97% saying better orchestration tools would have a modest (44%) or significant (53%) impact on supply chain performance.
Other key findings include:
· Industrial respondents rate their resiliency highest (47%), while retail (29%) and aerospace (27%) rate themselves lowest · 42% of consumer product respondents rated their supply chain orchestration as mature, the highest among all verticals · 25% of respondents plan to move to new technologies in the next year to improve resilience · 33% want supply chain orchestration platforms that offer AI/genAI capabilities · 63% view their supply chain as some form of competitive advantage over the next 12 months, but it drops to 48% across the next 1-3 years · 37% said the biggest roadblock to adopting a supply chain orchestration application was not finding the right vendor solution
For more information on how Kinaxis’ supply chain management solutions can help your business, visit Kinaxis.com.
Methodology: Research was conducted in December 2023 by IDC and commissioned by Kinaxis, surveying 1,800 Supply Chain Leaders across North America (USA and Canada), Europe (UK, France, and Germany), and APAC (Japan, Taiwan, India, and Australia).
*IDC InfoBrief, sponsored by Kinaxis, Supply Chain Orchestration: Leveraging End-to-End Supply Chain Orchestration to Deliver Next Generation Supply Chain Management, Intelligence, and Responsiveness (doc #CA52004924, April 2024)
About Kinaxis Kinaxis is a global leader in modern supply chain orchestration. We serve supply chains and the people who manage them in service of humanity. Our software is trusted by renowned global brands to provide the agility and predictability needed to navigate today’s volatility and disruption. We combine our patented concurrency technique with a human-centered approach to AI to empower businesses of all sizes to manage their end-to-end supply chain network, from multi-year strategic planning through down-to-the-second execution and last-mile delivery. For more news and information, please visit kinaxis.com or follow us on LinkedIn.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240416805304/en/
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출처:Kinaxis Inc.
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