Vulnerable supply chains: the latest McKinsey study

Global supply chains are navigating an era of unprecedented disruption, marked by deep-rooted structural vulnerabilities heightened by recent global events. These challenges are impacting companies’ abilities to sustain continuity and competitiveness.

According to McKinsey’s latest survey, numerous organizations continue to grapple with managing disruptions, primarily due to the complexity of risk factors and the limited integration of advanced technologies. Digitalization has emerged as a pivotal strategy in addressing these risks, offering capabilities for real-time monitoring, optimization, and enhanced visibility—essential tools for fostering more resilient and adaptable supply chains.

Outlined below are the five key insights from the McKinsey survey, which underscore both the critical challenges and emerging opportunities within the industry.

1. Supply chain disruptions are the new norm

McKinsey’s survey reveals that 90% of supply chain leaders faced resilience challenges in 2024, underscoring that disruptions have become an enduring reality rather than isolated incidents. Ongoing factors, such as geopolitical tensions and volatile market conditions, continue to undermine global supply chains, emphasizing the need for companies to adopt a structured and proactive approach to disruption management.

2. Gap in the understanding of risks at the leadership level

Only 30% of executives believe their boards have a comprehensive grasp of supply chain risks. Additionally, many companies address these risks only reactively, in response to crisis events, rather than through regular, proactive planning. This lack of consistent attention at the leadership level leaves companies vulnerable to future disruptions, underscoring an urgent need to elevate awareness and strategic foresight within top management.

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3. Slow progress in advanced planning technologies

While advanced planning and scheduling (APS) systems are widely recognized as critical tools for enhancing resilience, only 10% of companies have fully implemented these systems. Furthermore, one-third of respondents have yet to establish a concrete business case for APS adoption, and 15% report that existing implementations have fallen short of expectations.

This slow pace in embracing advanced technologies hinders companies’ capacity to respond swiftly and effectively to disruptions.

4. Decline in inventory buffers as a mitigation strategy

Following a surge in inventory buffering during the pandemic, only 34% of respondents now report maintaining large inventories as a safeguard against disruptions, down from 59% in prior years.

This shift indicates a reversion to more traditional inventory management practices, influenced by cash flow and capacity constraints that limit many companies’ ability to hold excess stock.

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5. Digital talent shortage challenges

The shortage of digital skills remains a critical barrier to supply chain transformation, with 90% of respondents citing insufficient talent to achieve their digitalization objectives. This underscores the urgent need for companies to invest in internal training programs and attract specialized digital talent to bridge the skills gap—particularly as demand for advanced technology solutions continues to grow.

CargoON: a trusted partner in supply chain digitalization

McKinsey’s survey presents a complex landscape for European supply chains, highlighting frequent disruptions, limited risk awareness at the executive level, and slow adoption of advanced technologies as significant barriers to resilience. Investing in digital solutions is no longer optional but essential for building supply chains capable of adapting to continuous market shifts.

In this environment, CargoON emerges as a trusted digital partner, providing targeted, innovative solutions that optimize logistics processes and accelerate digital transformation.

By partnering with CargoON, organizations can build a more resilient, agile, and future-ready supply chain capable of meeting the demands of an evolving market.