COVID-19 has been a force for positive change in supply chain management
The BCI has released the 2021 Supply Chain Resilience Report, sponsored by Everstream Analytics. This is an annual crucial piece of research for the business continuity industry, which looks at the status of supply chains across the globe and how they have been impacted by the events of the last 12 months.
In this 2021 edition, the report shows that more organizations than ever are now using technology to assist with supply chain management and mapping. The uptake of technology was primarily due to COVID-19 and organizations admitted that the pandemic has been the main reason for investment in new technology and tools.
The number of supply chain disruptions organizations encountered in 2020 was higher than any other year in the report’s history. COVID-19 was the main cause for the dramatic increase in the volume of disruptions, although European respondents also reported disruptions due to Brexit-related issues.
Senior management are now more engaged with supply chain issues. Most respondents reported that management commitment to supply chain risk is now “medium” or “high and that the board’s interest in supply chain issues has increased.
Organizations are now more likely to interrogate the BC arrangements of critical suppliers and further positive finding this year is that most organizations are now going beyond a “tick box” exercise when carrying out their due diligence processes.
More due diligence should be carried out pre-contract. The report shows that not many organizations carry out due diligence on all key suppliers at the procurement stage, with a large part failing to do the necessary due diligence on key suppliers’ BC programmes until after contracts have been signed.
Rachael Elliott, Head of Thought Leadership at the BCI, on this year’s report:
“2020 saw organizations’ supply chains tested to the limit. New priority suppliers had to be sourced overnight as global transportation lines faced severe disruption and previously non-priority suppliers be upgraded to priority suppliers as organizations shifted strategic direction. Although the resultant disruption to customers and revenues were palpable, the results show an immediate – and positive – shift in the way organizations manage supply chain disruptions. Greater levels of due diligence are being carried out, organizations are actively investing in new technology such as supply chain mapping tools and closer relationships with suppliers have been forged. The pandemic has also finally showcased the importance of good supply chain management to boardrooms which has resulted in increased attention and, for many organizations, increased resource and budget.”
David Shillingford, CEO at Everstream Analytics, commented:
“Everstream Analytics is honored to have partnered with the Business Continuity Institute on this important report” noted David Shillingford, CEO of Everstream Analytics. “It comes at a time when supply chain resilience is a board-level topic. The depth and breadth of this report ensures that the right lessons are learned from the pandemic and the many other disruptions that have compounded the challenges of the past year. This report enables Business Continuity professionals help their companies Get in Front of What’s Ahead.”
Download the BCI Supply Chain Report 2021 for more findings.