AUSTIN, TEXAS —  A  LeanDNA survey of 250 supply chain, inventory, and planning executives, conducted in collaboration with Wakefield Research, reveals startling inefficiencies in the supply chain sector. Supply chain professionals spend nearly 14 hours per week tracking data. Although most supply chain executives plan to increase investments in proactive supply chain management more than three-fourths currently lack a predictive view of supply and demand.

“In a rapidly evolving market, this inefficiency points to a significant loss in productivity and a barrier to effective day-to-day decision-making, not to mention grave concerns about their ability to prepare for the next major supply chain disruption,” said Richard Lebovitz, CEO of LeanDNA, a leading intelligent supply chain execution platform.

Supply shortages are the most cited concern among executives but are just one of the many worries mounting in 2024 around potential external disruptions companies can’t control. More than half are concerned about public health crises, while nearly as many cite natural disasters, government regulations, cyber-attacks, and geopolitical conflicts. Executives predict a supply chain disruption could impact their workforce —meaning potential layoffs or other labor impacts and reduced productivity.

Bottom line tensions

Supply chain executives face challenges in balancing preparedness for disruptions without creating excess inventory. This explains why almost all face pressure to balance preparedness for a major disruption while avoiding excess inventory.45% of leaders fear damage to their organization's reputation during supply chain disruptions, while 36% fear strained supplier relationships. Having a predictive view of data is crucial for making informed decisions, but less than one in four companies have it.

Data can do more than prepare for disruptions, it can allow businesses to become more efficient with their resources. With real-time data that could inform their business decisions, supply chain executives say they could improve logistics and inventory management (47%), identify changes in demand (45%), and enhance collaboration (44%).

Steps to Prepare for Disruptions

Supply chain executives are gearing up for future disruption with 92% of supply chain executives planning to ramp up investments in preparedness strategies. 87% are focused on resilience as a high priority, including 41% who put it at the top of their list.

An impressive 86% of supply chain leaders report their organizations have already made major changes to their processes or tech stack to improve preparedness for the next major supply chain disruptions. Over one-third have gone through a complete overhaul. This includes 41% that diversified their supply base, 39% that identified new or better vendors, 36% that reskilled their workforce, and 32% that partnered with third-party logistics experts.

Supply chain executives are putting tech in place to support their people. More than a third have deployed digital twin and other simulation technologies and more than a quarter have added on to enterprise resource planning (ERP) software for more functionality.

“As an intelligent supply chain platform that empowers manufacturers to prioritize and collaborate to resolve critical material shortages and excesses, LeanDNA enables teams with a single source of truth for managing complex global supply chains,”  said Lebovitz. “We help companies improve on-time delivery and working capital levels through inventory visibility, recommended actions, and real-time collaboration with suppliers.”