Supply chain issues not over yet
SAP SE has released a new survey that finds senior business decision-makers expect the unprecedented supply chain issues and disruptions that U.S. companies have been grappling with for years are not over yet.
More than half (52%) of those surveyed think their supply chain still needs much improvement and nearly half (49%) expect current supply chain issues to last through the end of 2022. One in three says the issues will last until the end of summer 2023.
Findings are based on a survey conducted in late August and early September 2022 of 400 U.S.-based senior decision-makers in logistics and supply chain strategy across small, medium and large businesses.Here’s what they had to say.
The impact of global unrest
Global political unrest is the main factor causing current supply chain issues. Business leaders say their current supply chain issues primarily stem from global political unrest (58%), lack of raw materials (44%) and rising fuel and energy costs (40%). Only 31% cited inflation as a major contributor.
Looking ahead, the top three supply chain disruptions business leaders expect in 2023 are:
•Reduced availability of raw materials in the United States (50%)
•A slowdown in construction of new homes (44%)
•Disruption to public transport due to lack of drivers (44%)
Cost remains an issue
Cost remains an issue as companies catch up on lost revenue from the pandemic. Companies weren’t prepared for the drastic changes in consumer buying behaviors during the pandemic and felt the financial strain as a result.
