Increased pessimism regarding supply chain continuity

Author: Greg Gowans
Red Sea disruption hits supply chain continuity, sparks focus on diversification and local sourcing

A report by US-based commercial data and analytics firm Dun & Bradstreet has found increased pessimism regarding supply chain continuity.

The D&B Global Business Supply Chain Continuity Index for Q1 2024 fell sharply from 51.1 in Q4 2023 to 47.9 in Q1 2024 due to “geopolitical tensions in different parts of the world, trade disputes among leading nations, and climate-related issues together disrupting trade routes, causing both higher delivery costs and delayed delivery times.”

The decline was visible in both advanced and emerging economies, with the latter experiencing a sharper fall. 

Amid this backdrop, 1 in 3 firms surveyed by Dun & Bradstreet said they were considering diversifying their supply chains to multiple sources and multiple regions as their top priority. 1 in 4 said they would be considering making improved supplier communication and consolidation a priority. 

Dun & Bradstreet adds that other prevalent supply chain themes were sourcing more locally to avoid disruption, changing models to make supply chains more resilient, as well as the incorporation of ESG into sourcing decisions.