Consumer goods brands are facing a sharp rise in supply chain disruption, with 80% hit by geopolitical disruption, 86% impacted by port congestion, 87% facing technology failure and 91% affected by climate-linked delays in the last three years, according to a new global study from DP World.
These incidents now cost the sector more than $12 billion a year, with the average logistics failure setting a company back around $680,000.
“Consumers have lived through enough disruption to know what failed logistics looks like, and they hold brands accountable. Reliability has become a signal of trust. Yet many companies place their confidence in supply chain networks that aren’t built for the level of volatility we see today. Closing that gap will determine who earns consumer loyalty in the years ahead,” says Wim Hoogedeure, global VP and consumer vertical lead at DP World.
Key takeaways:
· Three-quarters of companies report an increase in customer complaints after an incident, while 68% have lost business or contracts, making reliability one of the clearest drivers of brand trust in today’s market.
· While 94% cite visibility as a major challenge, only 27% rank visibility improvements among their top investment priorities, and fewer than four in 10 fund formal risk-management or resilience planning.
· However, there are signs that this is beginning to change. Three-quarters of companies expect to increase their logistics investment over the next three years, with growing interest in automation, AI and technologies that help teams detect risks earlier and adjust before customers notice.
· Companies investing in more anticipatory, insight-driven capabilities are positioned to reduce disruption costs and strengthen reliability, which 78% of brands say is central to customer retention.
“What we see making the strongest difference for consumer goods brands is the ability to spot pressure points early and act before they turn into delays or shortages. When logistics operations are well-orchestrated and backed by the right intelligence, potential issues can be dealt with upfront, helping brands to maintain the level of product availability that their customers expect," adds Beat Simon, chief operating officer – logistics, DP World.
