The Global Supply Chain Resilience Outlook, produced by supply chain consultancy Proxima, surveyed of over 500 CEOs at businesses generating over $500m in annual revenue across the UK, USA, Australia, Singapore and Germany.
It found that in order to guarantee supply chain resilience, almost three quarters (72%) of CEOs would accept an uplift of more than 10% on their current third-party supplier costs.
Proxima said that the food supply chain, in particular, is exposed to volatile climate conditions, regulatory requirements and time sensitive production cycles.
It said that as food manufacturers rely on lean inventories, continuous production and cold chain operations, it limits the buffer available when disruption occurs.
“The report indicates that CEOs are treating resilience as a proactive investment and in the food sector this often means spending on dual sourcing strategies, additional inventory for critical ingredients, stronger supplier partnerships and joint investment in equipment or capacity that protects production when disruption occurs,” said Jordan Kear-Nash, Principal Consultant at Proxima.
He also highlighted regulation as another area that can impact directly on food supply with sustainability continuing to “build pressure” across the sector.
“Food manufacturers are already navigating requirements linked to deforestation, packaging, emissions and traceability, which increases the workload on procurement teams while businesses explore diversification and new supply models,” he said.
He said that operational endurance will also impact on food manufacturers with investment needed in real time inventory visibility, structural supplier redundancy and rehearsed contingency plans.
“Taken together, the report’s themes show that food supply chains sit firmly within the resilience conversation. The pressures highlighted in the research are present in food and the commercial case for investment is becoming clearer as manufacturers work through more complex supply environments,” Kear-Nash said.
The Outlook reinforces that resilience is no longer a defensive measure but a practical requirement for maintaining continuity in a sector that faces constant operational pressure."
