Supply chain remains the industry's problem child

Study: Only one in five companies describes itself as truly resilient

Press Release: Köngen, October 8, 2024 – More than two-thirds of companies in the DACH region complain about bottlenecks with their suppliers. Other burdens include supplier quality issues and a sharp rise in transportation costs, according to the latest “Performance Drivers 2024” study. Supply chain issues are also difficult to mitigate, with only about one in five companies describing themselves as truly resilient. For the study, management consultants Staufen surveyed more than 200 industrial companies in Germany, Austria, and Switzerland.

“The results of our study show that the effects of the global crises continue to affect companies. Fragile supply chains and high costs continue to put companies under tremendous pressure. The coronavirus pandemic, for example, was a long time ago,” says Christian Ullrich, a supply chain network management expert at Staufen AG.

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Christian Ullrich Principal STAUFEN.AG

What problems do companies currently have with their supply chains?

For example, 68 percent of companies surveyed admit to suffering from supply chain bottlenecks, nearly half (45 percent) also complain about quality problems with their suppliers, and 39 percent of participants in the study are struggling with sharply rising transportation costs. Alarming: Only 13 percent of the companies surveyed describe their supply chains as “very stable”. The majority (69 percent) consider the situation to be “fairly stable,” while nearly one in five (18 percent) consider their own situation to be unstable.

How resilient do companies consider their organization to be overall?

The vulnerability of companies is also reflected in the responses to the question of how resilient they consider their own organization to be overall. Only 20 percent of respondents consider their company to be “very resilient”. Staufen consultant Ullrich: “Resilience is not a luxury, but a necessity. Especially in the face of increasingly volatile conditions, the goal should be to significantly increase the proportion of truly resilient companies and invest in their own adaptability.” The industry expert recommends diversified supply chains and flexible production systems embedded in a corporate culture focused on operational excellence.

Companies want to reduce costs across their supply chain network

As the economic downturn continues, cost reduction remains a top priority for organizations. Christian Ullrich: “As our study shows, this affects the supplier network, the production network, and distribution to the customer – in other words, the entire supply chain network. Possible measures range from network optimization, i.e., global footprint, to inventory management and targeted sales and operations planning.

“However, companies must also fundamentally rethink their supply chain network,” continues the Staufen expert. “It’s not just about cutting costs; it’s about building resilient and flexible structures. This requires investments in technology, but also in expertise and partnerships, which can pay off many times over and should become a more strategic focus. This is an opportunity that many companies have not yet recognized.”

ABout the Study„Performance-Drivers 2024“

For the “Performance Drivers 2024” study, Staufen AG surveyed more than 209 industrial organizations in Germany, Austria, and Switzerland early this year. You can request a copy of the complete study results here.

Study: Performance Drivers 2024

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