Kinaxis sponsors research: Finds 83% of supply chains can’t quickly respond to disruptions
24 Apr 20243 min read
Summary
- A survey of 1,800 supply‑chain leaders, commissioned by Kinaxis (via IDC), found that 83% of supply chains cannot respond to disruptions within 24 hours, with average response time around five days.
- Only 17% of respondents say their companies can react within a day, and 67% say they are not “very satisfied” with their response performance; resilience varies by industry, with industrial at ~47% reporting higher readiness versus retail at ~29%.
- Despite the gap, 97% believe that better orchestration tools (including AI and gen‑AI) will improve supply‑chain performance, though 37% say the main barrier is finding the right vendor solution.
A new IDC study sponsored by Kinaxis (TSX: KXS) reveals slow progress in making supply chains more flexible and resilient. They underscore optimism towards supply chain orchestration tools as a key enabler for the future.
Said global survey of 1,800 supply chain leaders shows that the average response time is five days. Thereby, hindering progress on resiliency and risk mitigation.
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 is a staggering two-thirds (67%) of respondents. They admit that they are not “very satisfied” with their response time.
While the average crisis response time is a troubling five days, the survey shows that performance varies across industries. In the oil and gas sector, for example, 28% of respondents say they can mount a response within a day. Whilst, it is only 15% in life sciences and 14% in aerospace fields.
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“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.
According to him, in this landscape, there lies a significant opportunity for improvement. He added that companies can work on improving visibility and increasing collaboration. Philip also noted an effort to advance towards orchestration to enable Chief Supply Chain Officers to automate enterprise decision-making.
Respondents in all regions are overwhelmingly dissatisfied with their business’ ability to withstand and respond to supply chain shocks. However, they remain optimistic about technology’s potential to turn the tide. Results show that 97% say better orchestration tools would have a modest 44% or significant 53% impact on supply chain performance.
The study also found that industrial respondents rate their resiliency highest at 47%, while retail, 29%, and aerospace, 27%, rate themselves lowest. Meanwhile, 42% of consumer product respondents rated their supply chain orchestration as mature which was the highest among all verticals.
In terms of technology adoption, 25% of respondents plan to move to new technologies in the next year to improve resilience. Whilst, 33% want supply chain orchestration platforms that offer AI or genAI capabilities
The research also found that 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. Approximately, 37% said the biggest roadblock to adopting a supply chain orchestration application was not finding the right vendor solution.
Said sponsored survey by Kinaxis, overall 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.
For more information on Kinaxis’ supply chain management solutions, visit Kinaxis.com.
*The research survey happened in December 2023. It was led by IDC across a respondent of 1,800 Supply Chain Leaders. They are from North America (USA and Canada), Europe (UK, France, and Germany), and APAC (Japan, Taiwan, India, and Australia).