Supply Chain Risk Looms Large – But Are the Response Capabilities Overhyped?
After the past few years of disruptions, a huge majority of resilience professionals view supply chain risk as a top priority. But new research says the most popular fixes may not be able to match expectations.
In a recent survey by the Neustar International Security Council, 78% of security professionals said their reliance on cloud-based services has increased post-pandemic, along with their reliance on third-party services. As a result, 76% said they now view supply chain risk as a top security priority.
This third-party entanglement is the reason so many expressed concern about increased risks – 73% believe they or their customers are exposed to some degree of risk as a result of this integration. And while the majority of those polled are confident in their contingency plans in case of disruption, 24% do not feel confident about their organization’s response.
Because of the disruptions over the past few years, managing against supply chain risk has become increasingly important – but it’s just as important for risk professionals to manage expectations of current capabilities, according to Gartner’s most recent Hype Cycle for Supply Chain Strategy. This report tracks the “peak of inflated expectations,” where early successes are highlighted, but expectations rise above current capabilities.
Said Noha Tohamy, Gartner Supply Chain VP Analyst:
“Today’s levels of disruption in global supply chains and price inflation have transformed existing notions of resilient operations. Challenges such as those from active conflict, severe weather, cybercrime, trade policy uncertainty and other risks, make improving supply chains’ resilience a key priority. At the same time, the pressure to manage traditional key performance indicators, such as cost still remains.”
So while resilience professionals should utilize every tool available to them, it’s also important not to expect a silver bullet, and to keep a close watch on those tools they put in place.