Over half of business leaders with a supply chain (52%) have reported difficulties with operating their business today, compared to 12 months ago, according to Grant Thornton.
In a bid to manage cost pressures, 61% of respondents said that their suppliers have agreed to more flexible payment terms, and 55% are passing increasing costs in their supply chain onto customers through higher prices for their products/services.
Overall, 42% have already increased their prices, with a further 51% planning or expecting to raise prices this year. Grant Thornton said the increasingly challenging operating environment has been fueled by headwinds such as commodity prices, increased trade administration, energy costs and political uncertainty.
Building a “resilient and agile” supply chain is now a top priority for 57% of business leaders, with around 48% reporting that their business did not have a good enough understanding of their business’ supply chain to be able to respond quickly to disruption over the last 12 months.
The top risks to mid-market supply chains were identified by business leaders as cyber security, Brexit disruption, ethical breaches by suppliers and rising inflation.
Oliver Bridge, head of operational consulting at Grant Thornton, said: “Businesses need to take a risk and profitability-based approach to their supply chain as changes that affect businesses are happening constantly, whether you are prepared or not.
“It will likely take 18-24 months for organisations to make any meaningful changes to their supply chains, and this timeline will depend on the maturity of the supply chain approach.”