A new study from Avetta found that while organizations recognize supply chain risk is becoming more frequent and complex, many still lack the centralized visibility, connected processes and predictive capabilities needed to respond to these vulnerabilities with confidence.
“The key findings show the challenge isn’t simply that risk is increasing; it’s that many organizations are still trying to respond with disconnected systems, fragmented visibility and reactive processes,” says Abid Yousuf, chief customer officer at Avetta. “Closing the readiness gap starts with giving leaders the ability to see risk sooner, act earlier and keep work moving safely and efficiently.”
Key takeaways:
· More than three-quarters (77%) of respondents report that global supply chain and workforce risk has increased over the past 12 months, yet only 44% have fully centralized, real-time visibility into their third-party workforce, safety and compliance risk factors. And, 68% experienced workforce-related operational delays or shutdowns during the same period.
- More than half (56%) rely on risk visibility that is delayed, fragmented or largely manual.
- Nearly two out of five (39%) identify risk only shortly before or after it has already affected operations.
- Limited visibility into third-party risk is the second most-cited (38%) barrier to effective vulnerability response overall.
- Nearly three-quarters (71%) of respondents say compliance requirements have grown more complex over the past year, with 42% indicating that this increased complexity is a leading barrier to effective risk response. Yet nearly a quarter (24%) still rely on fragmented or manual risk management processes that hinder their ability to adjust to the evolving regulatory landscape. Against this backdrop, 53% say compliance demands frequently divert time and resources from frontline safety work, creating tension between maintaining compliance and actually improving safety outcomes.
- Nearly every organization (97.2%) is using AI somewhere within their supply chain risk management lifecycle, but widescale deployment remains uneven, with only 38% saying AI is fully embedded across their operations. A larger contingent (51%) is using AI only in a limited capacity, while 11% remain in the early stages of adoption.
- Organizations are most commonly using AI for supplier analysis (55%); regulatory tracking (51%); compliance measurement (50%); predictive safety monitoring (46%); and job safety analysis (42%).
- Greater visibility into third-party safety, sustainability and financial risk (52%) along with real-time monitoring and predictive analytics (48%) rank among the capabilities respondents believe will strengthen their risk response. In addition, 50% identify improving predictive risk visibility as a top strategic priority for the year ahead.
