New Research Finds 83% of Supply Chains Can’t Respond to Disruptions Within 24 Hours


SINGAPORE, 17 April 2024 – Despite being one of the biggest lessons from the pandemic era, a new IDC study* sponsored by Kinaxis® Inc. (TSX:KXS) reveals slow progress in making supply chains more flexible and resilient while also highlighting optimism towards supply chain orchestration tools as a key enabler for the future.

According to research, less than one-fifth (17%) of global supply chain leaders say their companies can respond to disruptions within 24 hours. Highlighting their widespread frustration, a staggering two- thirds (67%) of respondents admit they are not “very satisfied” with their response time.

The comprehensive survey of 1,800 supply chain decision- makers from around the world exposes the harsh reality that most are struggling to keep their operations agile and adaptable amid an onslaught of disruptions from geopolitical conflicts, natural disasters, and other volatility. While the average crisis response time is a troubling five days, the survey shows performance varies across industries. In the Oil and Gas sector, for example, 28% of respondents say they can mount a response within a day, compared to 15% in life sciences and 14% in aerospace.

“It’s increasingly evident that supply chains have immense influence over the success or failure of businesses. The statistic revealing that 83% of supply chains are unable to adapt to disruptions within a 24-hour timeframe highlights the urgent need for increasing resilience and managing risk management across all industries especially in Asia,” said Phillip Teschemacher, Asia Pacific (APAC) President at Kinaxis. In this landscape, there lies a significant opportunity for improvement. Companies can work on improving visibility, increasing collaboration and advancing towards orchestration to enable Chief Supply Chain Officers to automate decision- making across the entire enterprise.”

Phillip Teschemacher, Asia Pacific (APAC) President for Kinaxis

Other key findings include:

  • Industrial respondents rate their resilience highest (47%), while retail (29%) and aerospace (27%) rate themselves lowest.
  • 42% of consumer product respondents rated their supply chain orchestration as mature, the highest among all verticals.
  • 25% of respondents plan to move to new technologies in the next year to improve resilience.
  • 33% want supply chain orchestration platforms that offer AI/genAI capabilities.
  • 63% view their supply chain as some form of competitive advantage over the next 12 months, but it drops to 48% across the next 1-3 years.
  • 37% said the biggest roadblock to adopting a supply chain orchestration application was not finding the right vendor solution.

Methodology: Research was conducted in December 2023 by IDC and commissioned by Kinaxis, surveying 1,800 Supply Chain Leaders across North America (USA and Canada), Europe (UK, France, and Germany), and APAC (Japan, Taiwan, India, and Australia).

*IDC InfoBrief, sponsored by Kinaxis, Supply Chain Orchestration: Leveraging End-to-End Supply Chain Orchestration to Deliver Next Generation Supply Chain Management, Intelligence, and Responsiveness (doc #CA52004924, April 2024)

About Kinaxis

Kinaxis is a global leader in modern supply chain orchestration. We serve supply chains and the people who manage them in service of humanity. Our software is trusted by renowned global brands to provide the agility and predictability needed to navigate today’s volatility and disruption. We combine our patented concurrency technique with a human- centred approach to AI to empower businesses of all sizes to manage their end- to-end supply chain network, from multi-year strategic planning through down-to- the-second execution and last-mile delivery.

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