Why CEOs Struggle to Execute Supply Chain Resilience Plans
Business operations now face continuous upheaval rather than isolated disruption events. This has prompted leaders to shift from efficiency to resilience as their main priority, but many are struggling to turn plans into action.
Proxima, part of Bain & Company, has published its Global Supply Chain Resilience Outlook report, examining the main concerns and obstacles facing leaders.
The research covers issues including cyber resilience and artificial intelligence (AI) implementation.
- CEOs are willing to pay a mean uplift of 17.3% to ensure supply chain resilience
- 56% of CEOs say 11-20% of their revenue would be at risk if their top three suppliers were disrupted for two weeks
- 51% of CEOs say AI is delivering measurable value for risk monitoring
- Less than 40% of businesses have real-time visibility
Resilience becomes top priority
Supply chain resilience has become a central concern for modern businesses.
The past five years have brought the COVID-19 pandemic, the Russia-Ukraine war escalation, semiconductor manufacturing shortages, Strait of Hormuz closures, Suez Canal blockages, US President Donald Trump's tariffs and climate change impacts. These events have forced businesses to find new routes, break alliances and work with different suppliers.
Trade disputes, wars, bottlenecks and redrawn trade routes continue to emerge. Supply chains worldwide cannot plan ahead and must instead react to uncertainty whilst trying to limit damage.
Supply chain leaders are starting to withstand shocks by predicting disruption levels or creating scenario-based solutions. However, business leaders remain pessimistic about maintaining operations during turbulence, according to Proxima.
The Global Supply Chain Resilience Outlook draws on insights from more than 500 chief executives at businesses generating more than US$500m in annual revenue. The survey covers the UK, US, Australia, Singapore and Germany.
Strategy gaps emerge
According to the survey, more than half (51%) of chief executives said they could not maintain day-to-day operations for more than three weeks without disruption if a major shock occurred. This could show a gap between ambition and solid strategy.
"It is no secret that businesses are navigating a period of intense supply chain uncertainty. This research shows that CEOs are still very alert to disruption risk and that they are placing an increasing emphasis on building sustainable supply chain resilience to counteract," explains Simon Geale, Executive Vice President at Proxima.
"CEOs are further recognising the substantial costs and vulnerabilities their companies could face from supply chain disruption, and it is now clear many are willing to pay a premium to guard against that risk. Resilience has become a boardroom topic and a price worth paying."
Disruption has changed how supply chains operate. Previous strategies focused on short-term cost savings rather than long-term planning. Leaders now want to spend more to protect assets, which could translate into long-term savings.
Cyber threats drive spending
According to the Proxima report, 72% of chief executives would accept a cost increase of more than 10% on current third-party suppliers to guarantee resilience. These extra costs would come from cost-saving measures (38%), passing prices to customers (35%) or absorbing costs through reduced margins (26%).
This focus on third-party resilience comes as cyber threats increase. Businesses are implementing AI and other digital tools to meet demand, which exposes them to cyber attacks. According to the research, 45% of global supply chains have been affected by cyber threats in the last two years, whether from internal or supplier-based attacks.
Jaguar Land Rover (JLR) had to close production at its Solihull, Halewood and Wolverhampton plants in the UK in 2025 due to a cyberattack. Thousands of businesses were affected, with production halted for several weeks.
Supply chain cybersecurity has become more important, with 42% of businesses conducting full cyber resilience stress tests across critical suppliers in the past 12 months. However, only 35% of businesses have real-time visibility into supplier cyber risk exposure.
Resilience has become a boardroom topic and a price worth paying.
CPO strategy at Procurement LIVE
Procurement leaders looking to understand how the function is evolving will not want to miss the CPO Strategy Summit at Supply Chain LIVE: The London Summit. Hosted by BizClik and Supply Chain Digital, the event takes place on 8-9 September at the QEII Centre in Westminster, bringing together senior supply chain and procurement executives to explore the biggest challenges and opportunities shaping the industry.
More than 1,000 attendees will gather to hear from 50+ speakers, gaining insights into leadership, transformation and how procurement can deliver greater value across the organisation.
The CPO Strategy Summit panel:
Date: 9 September
Time: 10:45-11:30 BST
Location: Procurement Stage
