BCI’s latest research report looks at supply chain resilience trends and challenges
- Published: Thursday, 16 July 2020 08:38
The BCI has published a new research report, ‘COVID19: The Future of Supply Chain’, which shows that 73 percent of organizations responding to the survey has encountering ‘some’ or ‘significant’ detrimental impacts on the supply side due to COVID-19.
Other key findings included:
- Slightly less than half of organizations (49.5 percent) reported having a plan in place that sufficiently covered them for the supply chain issues encountered during the pandemic.
- Nearly three quarters of organizations (73.0 percent) encountered some or significant detrimental effects on the supply side, with 64.8 percent reporting the same on the demand side. One in five organizations, however, reported an increased demand for their products and services. IT, telecommunications and pharmaceutical organizations, for example, noticed an increased demand, whereas other organizations launched new products and services geared to catering for differing customer needs during the pandemic.
- The pandemic has caused many organizations to carry out wider due diligence deeper in their supply chains going forward: although organizations had largely carried out good levels of due diligence (such as determining suppliers’ location and obtaining business continuity plans) amongst their tier 1 supplier base, such due diligence started to tail off beyond tier 2. The pandemic caused disruptions to many organizations’ supply chains beyond tier 1 and as a result, nearly two-thirds of organizations plan to perform deeper due diligence in the future.
- There has been a discernible increase in the use of technology during the pandemic to help with supply chain planning and strategy: 57.1 percent of organizations are using their own internal systems and spreadsheets for supply chain mapping, whilst 13.5 percent are using specialist tools. Of those who are not currently using tools, a fifth are now considering purchasing a specialist tool.
- More than half of organizations intend to diversify their supplier base post-pandemic, with the Far East set to see the greatest impacts: 57.2 percent of respondents are looking to diversify their supplier base post-COVID-19 and, for many organizations, this means reducing their reliance on the Far East. 29.9 percent will source less from the Far East, with a further 13.2 percent sourcing less from China.
- Local sourcing will become more mainstream: two-thirds of organizations (66.2 percent) plan to source goods more locally post-pandemic. A further fifth will be engaging in more stockpiling post-pandemic.
- 12.4 percent of organizations intend to increase their use of third-party logistics post-COVID-19.
The report was supported by Resilience360.