Adapting to changing circumstances, a core function of supply chain management, is complicated. According to Accenture’s Pulse of Change survey concerns and expectations of supply chain executives have shifted with regard to the second half of 2024,
One of the most pressing concerns is that of revenue growth. In May 60% of those surveyed expected fast revenue growth. In March that number was 75%. Conversely, 12% now expect revenue growth to slow, twice as many as in March (6%).
Growing concerns of supply chain managers include increased geopolitical tension. Today this concerns 36% of the respondents compared to 31% in March and 27% in September of 2023.
Talent shortages are still a high concern for 48% of managers. That compares to 43% in March and 40% in September of 2023.
Technology continues to be a concern for 50% of executives, but that has decreased from 57% in March and 62% in September of 2023.
Unease over shifts in consumer purchasing behavior has decreased as 43% were concerned in May, compared to 49% in March and 54% in September 2023.
The ability of supply chains to address these concerns could be adversely affected by the level of maturity of the supply chain. An Accenture report published in July shows supply chains are only 36% mature on average. Most companies don’t have the capabilities to adapt their supply chains to changes as they happen, based on autonomous decision-making and advanced simulations, enabled by advanced technologies such as generative AI. Organizations furthest ahead in having these capabilities are 23% more profitable.
To address this shortfall, Patty Riedl, Accenture’s North America lead for supply chain advises companies to “keep upgrading the tech side of supply chains which determines the future-readiness of their supply and production networks. Digital capabilities are key to reinventing supply chains, so they become sustainable, resilient, and competitive long-term despite geopolitical uncertainties.”
