Building a resilient supply chain

What is supply chain resilience?

Impact of supply chain disruption

According to Interos, organisations were generally impacted by three significant supply chain disruptions in 2022, costing a combined $US182 million in lost revenue.² Disruption causes were split evenly between financial, operational, cyber, environmental, social, governance (ESG), and other risk categories. Most companies were affected by sub-tier supplier issues where they have limited visibility.² Sub-tier suppliers are those that organisations do not have a direct relationship with, and are further down the supply chain – in other words, those that are supplying the suppliers.³

To better understand the supply chain landscape, Citi partnered with East & Partners to conduct primary, voice-of-the-corporate research on the supply chain challenges, resilience, and futures of the top 100 annual revenue-ranked corporates. This research spanned various markets. Here’s what they're saying:

• 75% are experiencing higher inventory costs
• 42% of those with predominantly small suppliers feel impacted by rising interest rates
• 70% have adopted new technology to track goods
• 50%+ are prioritising greater integration and communication with existing suppliers
• 62% are diversifying and expanding supplier networks to alternative markets and suppliers.

Ways to improve supply chain resilience

Supply chain resilience is increasingly essential for business success. Enterprises are building this resilience in a number of ways including:

• focusing on inventory management strategy
• building diverse and longer-term partnerships with producers
• deeper investment in digital tools. 

Learn more about the impact of Artificial Intelligence on supply chains

¹ Supply Chain Resilience Report 2022 (deloitte.com)
² 2022 Global Supply Chain Report and Survey - Interos
³ Supply Chain Finance (citigroup.com)

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