Top 10 Shocking Supply Chain Statistics
Getting your supply chain right is difficult. Use these shocking statistics, and our other list of ten more shocking supply chain statistics, to optimise your operations.
Getting it wrong:
- Over 1/3 of firms don’t know how their suppliers are performing. Lack of time and software, understaffing, people forgetting, and not feeling the need to do so were the main reasons for not evaluating suppliers. (CIPS)
- Across industries, 1/3 of all supply chains fail to manage risk on a formal basis. Within the automotive industry specifically, 37% acknowledge no formal practices for monitoring risk. (IBM)
- Companies with global supply chains can be standing on a cost base of which 90% is caused by supply chain expenditure. (Logistics Bureau)
- A total of 2,696 supply chain alerts were issued in 2018. This is up 36% since 2017. (CIPS)
- Supplier Relations Management (SRM) is still in its early days. Just 13% of businesses across all sectors have an established SRM function, adding to continued volatile client-supplier relationships. (CIPS)
- Although 94% of supply chain leaders say digital transformation will fundamentally alter supply chain management, just one in four respondents had a digital procurement strategy in place. (Forbes)
Getting it right:
- 79% of companies with high-performing supply chains achieve revenue growth above average within their industries. On the contrary, only 8% of businesses with less capable supply chains report above-average growth. (Logistics Bureau)
- 69% of supply chain leaders have an EBIT margin that is significantly above average, compared to just 9% of supply chain followers. (Deloitte)
- Empower executive level leadership: Over half of supply chain leaders have a senior executive heading their supply chain function, compared to just 1/3 of supply chain followers. (Deloitte)
- 88% of supply chain leaders are likely to actively recruit supply chain professionals with analytics expertise and cross-functional experience and
83% are likely to recruit those with global experience. Those figures are significantly lower when referring to supply chain followers (62%, 61% and 57% respectively). (Deloitte)
