A survey of 3,000 CEOs from the United Kingdom, Europe, and the United States reveals that company leaders are struggling to deal with supply chain shocks and disruptions in 2024, with the majority citing resiliency problems within their supply chains. That’s according to the 2024 Supply Chain Barometer report from consulting firm Proxima, released this week.
The Barometer provides a “critical temperature check” on how business leaders are responding to geopolitical, economic, and environmental supply chain issues, according to Proxima. This year’s results reveal that complex supply chains continue to be redesigned and reconfigured as globalization continues to give way to regional, “friendly” trading zones, the authors said.
For U.S. CEOs, “right shoring,” AI, decarbonization, and labor concerns are among their top supply chain challenges. Key findings from the report show that in the United States:
- 87% of CEOs see resiliency problems in their supply chains;
- 96% of CEOs are dedicating equal or more time to supply chain issues this year;
- Right shoring (the process of moving business operations to the best location) trends reveal that: 44% of CEOs are planning to or have undertaken onshoring; 41% are planning to or have undertaken nearshoring; 41% are planning to or have undertaken friendshoring; and 35% are planning to or have undertaken offshoring;
- 99% of CEOs surveyed are either using or considering AI for their supply chains, with 82% planning new AI initiatives this year;
- 63% say they are concerned about the potential for human or labor rights issues in their supply chain;
- 99% say there are facing barriers to decarbonization, with 30% pointing to complexity of the work required as the biggest barrier.
“It’s fair to say that the complexities of global supply chains continue to have CEOs around the world scratching their heads. The results of this year’s Barometer show that business leaders are spending more and more time tackling supply chain challenges, reflecting the multiple challenges to address,” Simon Geale, executive vice president and chief procurement officer at Proxima, said in a statement announcing the report’s findings. “Perhaps most worrying is that concerns around human rights issues persist, but the findings also shine a light on just how multifaceted the decarbonization conundrum is. What is for sure is that amongst other priorities like right shoring and investing in AI, there is a very [definite] focus on cost reduction in the 12 months ahead.”
Proxima is a consulting firm that specializes in procurement, supply chain, and supply chain sustainability.
Wreaths Across America