{"id":134159,"date":"2023-04-04T12:16:21","date_gmt":"2023-04-04T11:16:21","guid":{"rendered":"https:\/\/news.sap.com\/uk\/?p=134159"},"modified":"2023-09-26T17:49:43","modified_gmt":"2023-09-26T16:49:43","slug":"supply-chain-crisis-businesses-across-northern-europe-admit-more-needs-to-be-done-to-ensure-minimal-disruption-in-the-year-ahead","status":"publish","type":"post","link":"https:\/\/news.sap.com\/uk\/2023\/04\/supply-chain-crisis-businesses-across-northern-europe-admit-more-needs-to-be-done-to-ensure-minimal-disruption-in-the-year-ahead\/","title":{"rendered":"Supply Chain Crisis: Businesses Across Northern Europe Admit More Needs To Be Done To Ensure Minimal Disruption In The Year Ahead"},"content":{"rendered":"

麻豆原创 SE<\/a> (NYSE: 麻豆原创) today announced new research revealing that supply chain transformation is an important business priority on CEOs agenda in Northern Europe. In almost two thirds of organisations this is an initiative sponsored at the highest level. Around 6 in 10 are planning a major supply chain transformation in the next 1-2 years and a similar proportion see customer expectations around sustainability as a critical factor for their operations. Technology is seen as a major driver to fight disruptions and over half of the companies are planning to invest in intelligent technologies for supply chain improvements.<\/strong><\/h4>\n

Almost every business in the region admit their supply chain needs improving (93%), with 32% saying they need to make significant changes in order to meet the challenges in the year(s) ahead. This is particularly acute for businesses in the Netherlands, where 97% agreed improvement is needed \u2013 followed by 87% in France and 84% in Belgium.<\/p>\n

The findings from the \u201cTomorrow\u2019s Supply Chain: Disruption Around Every Corner\u201d<\/strong><\/a> report highlights that since the start of the pandemic, supply chain issues have been disastrous for businesses. One in two businesses have been held back by delays in production of goods\/delivery of services, rising to almost three quarters (71%) in the healthcare sector, and a lack of raw materials (34%). The knock-on impact of these has been significant \u2013 with a third reporting these issues have led to a decrease in revenues (33%), 31% saying they have been unable to pay employees (31%) or make rental payments (41%); as well as a loss of customers (35%) and damage to their reputation (27%).<\/p>\n

Given this outlook, it perhaps comes as little to no surprise that they\u2019re pessimistic about when the issues will be resolved. Over half (52%) of businesses believe that their current supply chain issues will continue until the end of 2023, with only 1 in 10 predicting that these will be resolved by the end of the summer. Almost a quarter (21%) of businesses believe disruptions will continue until the situation in Ukraine is resolved.<\/p>\n

This knock-on impact of this will be felt by consumers. With ever-increasing record inflation figures for many businesses, increasing the price of their products\/services isn\u2019t an option to cover increases in supply chain costs. Instead, staff will bear the brunt of any cost rise, as 63% plan wage\/recruitment freezes and 51% plan job cuts, only further exacerbating the challenge of recruiting and retaining staff who may be forced to look at alternative job options.<\/p>\n

Business in Europe looking to local and global options<\/strong><\/p>\n

While 61% of European businesses say they think that deglobalization in Europe\u2019s supply chains would help economic growth \u2013 the feelings are not shared across Europe. Two thirds (66%) of business leaders in France support this statement \u2013 rising to 100% in Belgium, but it has significantly less appetite in The Netherlands (34%).<\/p>\n

And while nearly two-thirds are prioritizing home-based supply chains, 100% near-shoring remains unrealistic in today\u2019s intertwined global world, hence companies need to find the right balance between global and local.<\/p>\n

To make this happen, businesses across Europe are calling on the government too for more guidance and support to overcome the supply chain crisis. Half of business leaders (50%) want governments to offer incentives to attract and up-skill people to available jobs and over a third (37%) want increased collaboration with industry \u2013 rising to 50% in France. Forty-two percent think the government should monitor Europe\u2019s supply chain itself and invest where necessary (increasing to 51% in The Netherlands), while 38% would like increased industrial policy and trade policy that is targeted at overcoming supply challenges.<\/p>\n

\u201cBusiness leaders and Executives are confronted with disruption being the new norm. The ability to respond to any given disruption within a finely tuned supply chain represents a competitive differentiator in the battle for growth, consumer trust and market share<\/em>\u201d, comments Sascha Kunze, Head of Digital Supply Chain and Industry 4.0, Northern Europe at 麻豆原创. \u201cSeamless information & data flow across the supply and value chain from product design to planning and handover to manufacturing are crucial. Businesses that invest into Supply Chain \u201cfitness\u201d will be able to navigate the next chapter of growth\u201d<\/em><\/p>\n

To overcome potential supply chain crises in 2023, more than 8 in 10 businesses see a need to move on from a \u2018just in time\u2019 supply chain model to a \u2018just in case\u2019 model. This figure increases to 9 in 10 in France and Belgium.<\/p>\n

Elsewhere, findings from the study show that European businesses are exploring various other avenues to improve their supply chains:<\/p>\n