57% of senior decision-makers working for large enterprises globally say the business disruption they are currently facing around lack of access to, or availability of, raw materials or component parts in the supply chain will be over by the end of 2022. 52% say the same about skills shortages in their supply chain. These are among the findings of new research commissioned by the enterprise technology provider IFS, polling over 1,450 senior decision-makers at large enterprises across France, Germany, Nordics, USA, the UK, and the UAE.
The survey highlights the impact of the circular economy and supply chain disruption on these organisations, revealing that to mitigate this, many are still indulging in stop-gap measures. These include keeping more stock on hand, as 66% of survey respondents are doing, increasing supplier numbers (70%) or sourcing more from domestic suppliers (72%). Together, these actions are likely to adversely impact efficiency and agility.
Rather than focusing on short-term fixes like these, businesses should be taking a longer-term perspective and concentrating on bolstering their supply chain management capabilities. The survey shows that’s now starting to happen, with supply chain management seen by 37% of respondents as being among the top three priorities their organisation is trying to solve through investment in technology.
Warren Zietsman, Managing Director of IFS Australia and New Zealand, stated that “with ongoing disruption and uncertainty around the world, supply chains will continue to be fragmented – with a crescendo effect for Australian organisations given our proximity and reliance on global markets.”
“While some have indicated that their operations will be ‘business-as-usual’ by Christmas, it’s clear that short term tactics such as increasing supplier numbers are not economically sustainable, especially in the current operating climate. Domestic supply and onshoring are areas that clearly need improvement to future-proof supply chain optimisation for Australian organisations” he said.
According to Zietsman, “for now, and into the future, however, adoption of technology must be the constant that goes hand-in-hand with any supply solutions that are explored.
Organisations need to place this front of mind. It’s time to embrace modern technology that allows for end-to-end visibility and harnessing the power of data modelling to plan ahead of time, to make their supply chains efficient and resilient in both the short and long term.”
Maggie Slowik, Global Industry Director for Manufacturing at IFS, said: “Many large enterprises are in denial about how long the impact of the current supply chain disruption will last. Our survey highlights that across multiple areas of disruption from shortage of cash to lack of market agility, at least half of respondents believe that disruption will have ended by the end of this year. That’s unlikely to happen. With disruption ongoing and increasingly endemic, organisations urgently need to focus on making their supply chains efficient in the long-term, ensuring they are addressing the circular economy and keeping themselves ahead of the pack with modern technology that gives them end-to-end visibility.”
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IFSCategory: Cloud Computing Profile: IFS develops and delivers cloud enterprise software for companies around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations. Within our single platform, our industry specific products are innately connected to a single data model and use embedded digital innovation so that our customers can be their best when it really matters to their customers—at the Moment of Service™. The industry expertise of our people and of our growing ecosyst ...
