2022 FOTP Supply Chain & Logistics Pulse Survey Pulse – Based on Feedback from 262 Respondents Working in Supply Chain and Logistics Functions
What’s included in the survey:
Executive summary consisting of 10 Key Trends and Highlights
Detailed ratings for each of these Research Areas:
Supply Chain/Logistics teams
Sustainability and its importance to Supply Chain/Logistics team
External pressures and risk management
Use of technology
Internal and external communication
Rich insights, based on the open text comments for the following 4 questions:
- What do you think will be the key attributes of successful Supply Chain/Logistics professionals over the next 5 years?
- What else, if anything, is your team currently doing to help your business achieve its Net Zero or sustainability targets?
- Given the number of challenges and disruption presented to Supply Chain/Logistics teams over the last 2 years, what have you, as a team, done particularly well to respond to these challenges?
- In your view, what will be the top Supply Chain/Logistics trends over the next 5 years?
10 Key Trends:
- The role of Supply Chain Teams has grown in importance for businesses. However, Supply Chain teams are under-resourced to be able to meet their current workload and, similar to other job functions, recruiting new talent is currently a clear challenge for them.
- The growing importance of the Supply Chain function resonates with the trend that Supply Chain teams feel well-supported in their business.
- Supply Chain professionals stated that the 2 most efficient ways of working for them were either in the office or using a hybrid approach. This is a different dynamic to both HR and Procurement teams (as part of the 2022 FOTP Pulse surveys), where the hybrid approach was overwhelmingly considered as the most efficient approach.
- Whilst Supply Chain teams are focusing on reducing their business’s carbon footprint, it was surprising to learn that 1 in 3 participating companies don’t currently have any Net Zero targets, mainly driven by SMEs and Micro-businesses.
- In addition, whilst there is evidence of some collaboration with suppliers on the sustainability & Net Zero agenda, less than half of the participating companies have an active Net Zero Scope 3 strategy.
- Amongst some of the things that Supply Chain teams are doing to support their businesses on the sustainability journey are – focusing on reducing energy use and considering alternative energy sources, using recycled raw materials and recycling waste, and focusing on setting targets.
- Similar to the 2022 FOTP Procurement Pulse, greater strategic importance is being placed on risk management in Supply Chains.
- As part of mitigating risks, Supply Chain teams are focusing on more regular communication with customers, to proactively inform them of any delays and challenges. In addition, agreeing extended lead times with customers was the second top action. Both of these highlight the importance of strong relationships with customers.
- Supply Chain professionals rely heavily on having and using data for informing important decisions.
- Whilst not currently widely spread, Supply Chain teams expect that AI will make their processes more efficient over the next 5 years.
What Supply Chain & Logistics professionals are currently doing to manage and anticipate risks.
Below are the 4 measures that Supply Chain and Logistics Professionals are taking to mitigate risks:
- Regular and proactive customer communication is number one
- The second widely taken measure is agreeing extended lead times with customers
- Outsourcing warehousing and logistics needs &
- Investing in warehouse management technologies were two other actions
“Pulled together to make sure we communicate better as a team and also communicate better with any customers who rely on us for updates in challenging times.” – Large business
“Creating plans to ensure the needs of customers are met by working with suppliers to try and mitigate lead times and material delays.” – Small business
“Greater integration between different haulage firms to make hubs more effective.” – Medium-sized business
“Improved planning for supply chain and logistics processes, less dependence on just in time practices. Computational and digital control of these areas as much as is possible.” – Small business