Organizations are increasingly confident about handling supply chain disruptions, but a significant gap exists between intention and execution—54% still rely on reactive approaches, and only 27% can respond on the same day when disruption strikes, according to BSI research.
- Confidence-execution gap: 81% expect better preparation over the next 12 months, yet 54% admit their approach to supply chain risk management remains largely reactive.
- Slow response times: Only 27% can take action on the same day when disruption strikes, and 33% of crisis response teams take up to three days to activate.
- Recent disruptions: Over the past 12 months, 40% experienced climate-related disruptions, 38% faced cyber incidents, 38% were impacted by conflict or sanctions, and 39% encountered transport disruptions.
- Operational shortcomings: 43% lack formal documented processes for managing supply chain risks, 38% cite poor visibility as a barrier, and only 38% have cross-functional teams meeting regularly.
- Future preparedness concerns: Despite planned improvements like increasing inventory (80%) and nearshoring (78%), only 35% feel fully prepared for geopolitical shocks and just 34% for raw material shortages.
Organizations are increasingly confident they can withstand the next supply chain disruption, but many lack the processes, visibility and coordination needed to respond effectively when it happens, according to BSI’s Building for disruption: the new outlook for supply chain resilience report.
While 81% expect to be better prepared for disruption over the next 12 months, more than half (54%) say their approach to supply chain risk management remains largely reactive. Just one in four (27%) can take action on the same day when disruption strikes, while 37% did not follow a crisis plan during their most recent disruption.
“2026 has been the hottest summer on record for several countries, and with conditions set to remain volatile into 2027 due to El Niño patterns, the human element of these disruptions is stark. A set of unrelenting environmental and geopolitical ruptures means that supply chain breakdown directly impacts everyday lives. When networks fail, people ultimately bear the burden through rising shelf prices and an inability to access the essential goods they rely on,” says Tony Pelli, practice director, supply chain resilience, BSI.
“The research shows that the majority of organizations expect to be well prepared for disruption over the next 12 months, yet they don’t have the foundations of resilience firmly in place. With more than half describing their approach to risk management as reactive, and a widespread lack of formal, documented processes for managing supply chain risk, there is an opportunity to embed best practice to enable proactive resilience,” adds David Fairnie, senior principal consultant, supply chain resilience, BSI. “Resilience means strengthening scenario planning, improving cross-functional coordination, increasing supply chain visibility, and ensuring leaders have the information they need to act quickly and confidently when disruption strikes."
Key takeaways:
· More than one-third (36%) of organizations plan to increase prices over the next six months to offset supply chain costs.
· Over the past 12 months, 40% have experienced climate-related disruptions, more than one-third (38%) were impacted by cyber incidents, 38% having been affected by conflict, sanctions or political instability, 35% faced component or raw material shortages, and nearly four in 10 (39%) encountered transport disruptions.
· A significant crisis readiness gap exists between intention and execution, with 45% of organizations planning to undertake cross-functional scenario planning, yet few carrying it out consistently. Even amongst those with an always-on crisis response team, activation can take up to three days (33%). The gap is highlighted by the finding that 37% did not follow their pre-agreed crisis plan during the recent Iran and Israel conflict.
· The research suggests that shortcomings in processes, visibility and cross-functional coordination are preventing organizations from responding effectively to supply chain threats.
- 43% of organizations lack a formal, documented process for managing supply chain risks, and slow or unclear approval processes are preventing decisions being made for more than two in five (44%), while only four in 10 (39%) have clear protocols for cross-functional communication when disruptions arise.
- Effective decision-making is also being hampered by poor visibility, with 38% citing a lack of timely and accurate data as a barrier to responding quickly and confidently to supply chain threats. Just a third (33%) have complete visibility of supplier locations and geographic exposure.
- More than one-third (38%) say silos and poor cross functional coordination is a barrier to effective decision making, and 28% say they experience conflicting priorities between teams and departments. Only four in 10 (38%) say cross-functional teams meet regularly (at least weekly).
- Looking ahead to the next six months, 80% plan to increase strategic inventory stockpiles; 79% intend to change transport modes; 78% are moving to nearshore key operations; 33% are seeking new supplier networks; 28% plan to reduce product ranges or SKUs; and 24% expect to shift trade routes entirely.
- However, despite these efforts, only 35% say they feel fully prepared for geopolitical shocks, while just 34% feel ready to manage raw material shortages and 37% cyber incidents.
- Two-thirds of respondents (59%) believe artificial intelligence will increase the risk of theft and cybercrime in supply chains, yet barely one-third (34%) feel fully prepared to handle severe technology failures or cyber incidents.
