Business heads have admitted being over confident about their ability to deal with supply chain disruptions, according to a new report
The research, by DuPont Sustainable Solutions, surveyed attitudes to managing unexpected supply chain events before and after the Covid-19 pandemic.
It revealed more than eight in 10 of the 203 leaders surveyed in 2019 thought they had a plan capable of addressing any unexpected business disruption.
However, this level of confidence fell dramatically when they were asked again in 2021, with just 43% of those polled claiming they were prepared.
According to the survey, 77% of those questioned now feel risks to their business have increased since the pandemic began (just 5% thought they had decreased), with 18% saying it is the same.
Although the survey reveals leaders were overly bullish about their ability to respond to sudden events, the data did, however, reveal learnings had been made.
Some 70% of leaders questioned said the pandemic had a positive impact on their digital strategies; more than 50% said communication had improved, and nearly 60% agreed their attitude to risk management had been positively impacted.
Commenting on the research, CEO of DuPont Sustainable Solutions, Davide Vassallo, said: “By placing a premium on achieving cost efficiencies by minimising inventories, streamlining supply chains, sourcing from low-cost labour markets, and implementing just-in-time manufacturing, it left companies with little flexibility to absorb the supply, sourcing, operating, and commercial shocks caused by the pandemic.”
According to the report, some 64% of respondents said the pandemic had negatively impacted their supply chain, with 36% saying it had negatively impacted operations.