Coupa's inaugural survey reveals a majority of supply chain
decision-makers don't anticipate supply chain issues improving in
the coming year
SAN
MATEO, Calif., Feb. 1, 2023
/PRNewswire/ -- Disruption and uncertainty have become the new
normal for the global supply chain. A majority (82%) of supply
chain leaders anticipate challenges will worsen or stay the same
during the next 6 to 12 months according to new survey data from
Coupa Software (NASDAQ: COUP), the leader in Business Spend
Management (BSM).
During 2022, more than 4 in 5 organizations experienced at least
one significant supply chain disruption, and 50% experienced three
or more. With continued or worsening conditions, consumers should
prepare for sustained impact on essential items. Supply chain
leaders predict that food, gas, and computer chips are most at risk
of impact in 2023.
Supply Chain Leaders Battle Increasing Costs
This year
will undoubtedly have a myriad of challenges for supply chain
leaders who anticipate the largest disruptions will be increased
costs (related to transportation, production, raw materials) and
geopolitical uncertainties. When it comes to financial and
operational concerns supply chain leaders are concerned about:
- A lack of sufficient, reliable transportation/shipping capacity
(28%)
- Continued shortages of critical parts or other goods (33%)
- Uncertainty in customer demand (27%)
- Cost and logistical challenges of implementing new supply chain
design, contingency planning, and/or technology solutions
(28%)
"Consumers continue to face a barrage of shortages of essential
goods and are growing impatient with the continued impact on their
daily lives. Over the last twelve months consumers have faced
shortages from tampons to Tylenol, and everything in between," said
Dr. Madhav Durbha, vice president of
supply chain innovation at Coupa. "With climate change and
geopolitical tensions expected to impact food and cause
disruptions, now is the time for supply chain leaders to take
initiative and be creative as to how they can invest and improve
their operations."
Make Suppliers Central to Win in 2023
Suppliers are
increasingly becoming a vital part of the disruption mitigation
equation. When it comes to improving their companies' supply chain
issues, 40% of all supply chain leaders surveyed indicated that
building healthy supplier relationships ranks in their top two
priorities.
Suppliers are central to a number of mitigation strategies
companies are implementing or planning to implement over the next 6
to 12 months, including:
- 28% are reducing dependency on suppliers from any one
region
- 28% are relying on suppliers that are geographically closer to
production and distribution facilities
- 31% are planning to strengthen relationships with their current
suppliers and/or buyers
"As disruptions persist, it's critical for organizations
to prioritize improving their relationships with suppliers," stated
Durbha. "When supply gets constrained and capacities and materials
go on allocation, suppliers tend to prioritize their preferred
customers. Organizations are gaining this status as 'preferred
customers' through collaborating with suppliers by providing
visibility into their anticipated demand and ensuring payments
happen on time."
Investments in Digital Supply Chain Solutions
Grow
With expectations of continued supply chain challenges,
it's paramount that leaders take efforts to rethink their supply
chain to prevent the consequences consumers experienced over the
last few years. One positive sign – 79% of leaders surveyed
indicated their company plans to invest in agility and resiliency
for their supply chain in 2023.
Leaders see digital solutions as a key to ensuring product
availability, improving customer experience, and reducing overall
risk, but 79% of all decision-makers surveyed reported not having
all of their functions digitized or not knowing if they are fully
digitized. A majority (83%) are already investing in digitizing
their supply chain or plan to in the next 12 months.
Dive into the full report, The State of Supply Chains: 2022
Reflections and 2023 Priorities here.
Methodology
This survey was conducted among 1,000
global supply chain decision-makers across the US, UK, France, and Germany). The survey was carried out with an
email invitation and an online survey in November 2022 by Morning Consult.
About Coupa Software
Coupa is the cloud-based Business
Spend Management (BSM) platform that unifies processes across
supply chain, procurement, and finance functions. Coupa empowers
organizations around the world to maximize value and operationalize
purpose through their business spend. To learn more about Coupa,
visit coupa.com or follow us on LinkedIn and Twitter.
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SOURCE Coupa Software