TAKEAWAYS Shaping the Future of the Global Supply Chain
Global Business Supply Chain Continuity Index Optimism about supplier delivery time and supplier cost has remained steady, while optimism for supplier concentration ticked up.
3 STEPS FOR SUPPLY CHAIN VIABILITY Supply chain and procurement leaders worried about securing business viability and addressing long-term resource constraints would do well to heed this advice: Focus on urgent, tangible issues, rather than attempting to mitigate exposure to long-term constraints directly. This approach proves to be more effective in finding solutions to actually address long-term limitations, according to new research from Gartner. The research identifies top current resource constraints that threaten business viability and defines three key categories of action where supply chain leaders should shift their strategies: 1. Motivate action by de-prioritizing long-term constraints. Supply chain leaders should instead focus on generating action through addressing the short-term risks that stakeholders are most focused on. 2. Reprioritize long-term constraints to design solutions. By engaging with relevant internal and external stakeholders, supply chain leaders can ensure both current and future constraints are considered as part of the design process. 3. Leverage the marketplace to learn and innovate. Leading companies forge partnerships with innovators, startups, and solutions providers with a clear goal in mind. They also use pilots to identify and overcome any barriers to that goal.
Q2 2024
Q3 2024
57
56
55
54
Supplier Delivery Time
Supplier Delivery Cost
Supplier Concentration
Source: Dun & Bradstreet
OPTIMISM ALL AROUND Dun & Bradstreet’s Q3 2024 Global Business Optimism Insights report reveals a notable rise in optimism across all five indices for the first time since Q3 2023. Overall global business optimism and financial confidence have increased by more than 12% and 23%, respectively, despite ongoing geopolitical tensions and supply chain issues, the report shows. Central banks’ moves to ease interest rates have bolstered confidence, with businesses feeling optimistic about sales, new orders, and reduced borrowing costs. Here are the details behind the optimism: • The Global Business Optimism Index increased 12.3% on the back of expected growth in sales, new orders, and favorable input costs amid easing global inflation. Information tech, wholesale and retail, and textile are the most optimistic sectors. • The Global Supply Chain Continuity Index saw a marginal improvement of 1.2% stemming from businesses adjusting to the new supply chain environment, which continues to be disturbed by geopolitical tensions, longer shipping routes and climate- related disruptions. Large business optimism deteriorated significantly while smaller businesses are more optimistic. • The Global Business Financial Confidence Index improved 12.3% as businesses are optimistic about their operating conditions and liquidity risk. Smaller businesses are now more optimistic about cash flow management given growing expectations of falling borrowing costs. • The Global Business Investment Confidence Index increased 23.3%, signaling a meaningful uptick in optimism for capital spending, backed by an accommodative global monetary policy. Globally, small and mid-sized businesses were more confident about the environment for merger and acquisition activity than larger businesses. • The Global Business ESG Index increased 8% as businesses look to re-engage their sustainability initiatives. In the survey, more than one in two respondents indicated increased funding for ESG-related activities.
16 Inbound Logistics • August 2024
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