Technology Advances Stats

Supply Chain Problems Statistics

There are some challenges that the supply chain industry still has to face; at least according to the following statistics.

• Only 6% of companies report full visibility on their supply chain, whereas a whopping 69% don’t have total visibility on their supply chain processes (Zippia). This shows that there is a gap that causes companies to not fully be in control of their supply chain processes. Lack of visibility and not investing in technology that improves visibility is a major setback because it can result in more delays, errors, and problems. 
• In the US, the Covid-19 pandemic led 38.8 percent of small businesses to experience supply chain delays (Zippia). Covid-19 has an impact on everything – including supply chain processes. The Covid upheaval has caused major delays, and as problems ease down, businesses are still trying to smoothen out their supply chain processes to ensure that they don;t have to face major problems with their supply chain management as a whole. 
• It is reported that only 22 percent of companies have a proactive supply chain network (Procurement Tactics). This means that almost 80 percent of businesses are not well-equipped to deal with sudden shifts and transitions in supply and demand. Considering that the market is not predictable at all, this could prove to be a major drawback for businesses, especially those that are planning to improve their customer service and expand their sales – which, more or less, is every business. 
• The percentage of small businesses that don’t track their inventory is 43 percent – out of these, 21 percent say they don’t have an inventory to begin with (Procurement Tactics). These statistics are quite shocking. Almost all businesses that deal with goods should have an inventory, and that inventory must be well-managed. The fact that almost 50% businesses don’t have any mechanisms to track their inventory shows that businesses are not well prepared to deal with the complications that are more than likely to occur during any supply chain process.
• Surprisingly, 63 percent of managers report that they primarily use Excel spreadsheets to manage their supply chain (Procurement Tactics). Although Excel is one of the most trusted ways to keep records of supply chain processes and manage warehouses, it’s just not enough for warehouse and fulfilment management in today’s time and age. This is because it is not efficient enough, and it is also prone to inaccuracies. Most importantly, it’s just tedious – who wants to scroll through boring spreadsheets? Replacing Excel with top-notch technology that is not only advanced enough to tackle all supply chain problems but is also easy and fun to use and integrate with in the warehouse is an absolute must. 
• 12 percent of retailers all over the world reported Covid-19 to have caused heavy disruptions to their supply chain processes (Procurement Tactics). This is true for many businesses – no matter what the industry is, almost all businesses and supply chain managers will agree that Covid-19 has caused disruptions in the supply chain.  
• Supply chains are vulnerable to a range of factors. 66 percent of supply chain disruption all over the world is mergers and acquisitions, whereas 41% are caused by extreme weather (Procurement Tactics). These aspects cannot always be controlled, which means that the only way to ensure they don’t result in a loss for your business in any way, shape or form is to connect the supply chain to the kind of technology that brings flexibility and adaptation to the supply chain.