Companies Can Do More to Mitigate Supply Chain Risks: PwC Survey

There are gaps between alternative and actuality in terms of firms defending themselves in opposition to future provide chain disruptions, in accordance with the PwC Digital Tendencies in Provide Chain Survey 2022.

General, PwC discovered that firms are appearing in a short-sighted means by specializing in provide chain fundamentals, like rising effectivity (63%) and managing/decreasing prices (59%). In the meantime, “they’re lacking worth creation in digitization, sustainability, and transformation.”

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Whereas firms see many provider attributes as vital dangers, solely a small minority are prioritizing adjustments within the subsequent 12 to 18 months that might mitigate these dangers, similar to rising responsiveness and resilience (10%), remodeling procurement practices and working mannequin (4%), and rising variety and section suppliers (3%).

The largest impediments to forward-looking initiatives are:

  • Finances constraints – 48% of respondents cite finances constraints as the most important concern in digitizing provide chains
  • Workforce shortages – 44% mentioned employee shortages and worker turnover might be certainly one of their largest operations challenges this 12 months

There’s additionally a disconnect between what firms have to be doing when it comes to ESG (environmental, social, and governance) to reach the longer term and their present priorities.

Given the waves of disruptions which have hit provide chains over the previous two years, it’s maybe not stunning that firms are targeted on the short-term. Nonetheless, PwC notes that “as vital as it’s to win day-to-day battles, firms additionally have to make the most of alternatives…that may assist enhance their probabilities for long-term success.”

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