63% expect supply chain disruptions to persist or worsen in 2024: QIMA

Logistics no longer is the biggest supply chain headache, as two-thirds of businesses named cost concerns as the greatest disruption to their sourcing last year, closely followed by demand fluctuation and geopolitical tensions.

Supply chain visibility has a long way to go: only 16 per cent of businesses reported knowing all of their suppliers (including raw material and component providers), and almost a third of the businesses knew less than half.

Over half of businesses worldwide increased sourcing from local and regional suppliers last year, and almost two-thirds plan to maintain the same trend in the coming year.

Seventy per cent of businesses said they consider at least one environmental, social and governance (ESG) factor in their sourcing decisions, and two-thirds are more vigilant about supplier conduct compared to a year ago. At the same time, more businesses than before seem uncertain whether their company falls in the scope of ESG laws, the QIMA survey revealed.

Highly digitised supply chains do better on multiple aspects of compliance: from visibility beyond tier 1 and product traceability to compliance with the new supply chain regulations. Businesses with more digitally-advanced supply chains found compliance easier than those relying on basic tools.

China sourcing made a strong turnaround in 2023, with businesses twice more likely to expand buying volumes with Chinese suppliers now than a year ago, with even American companies undeterred by trade tensions.

Fibre2Fashion News Desk (DS)