SYDNEY, AUSTRALIA - 25th April 2024
The latest international survey by software recommendation site GetApp reveals that economic pressures, supplier location, and cybersecurity threats are plaguing global supply chains, particularly within small to midsize enterprises (SMEs).
GetApp’s Supply Chain Plans Survey of 1,100 supply chain management (SCM) leaders across Australia, the U.S., Germany, France and the U.K. reveals critical issues currently impacting SMEs and how they’re building supply chain resilience in these challenges.
Insight from industry leaders reports on the following market trends affecting supply chains, providing SMEs with a guide to navigate anticipated challenges:
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Conduct a risk assessment to follow mitigation strategies
Nearly half (49%) of Australian SMEs cited inflation as their top concern, slightly above the international average of 45%. With inflation affecting procurement, 43% said that product availability issues were the most significant procurement challenge they have faced in the last six months, followed by product quality issues (35%) and delays in procurement (32%).
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Evaluate supplier locations and consider local options
Australia's location is a potential challenge, so 61% of SMEs continue switching to suppliers in or near Australia, and 20% are starting to do so. 45% of SMEs in Australia said most of their suppliers are currently nearby, and a further 27% said all of theirs are within proximity, second only to the U.S. (36%). Overall, 39% of Australian businesses plan to have all suppliers in or near Australia in 2024.
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Invest in software solutions to improve operations
The research shows that adopting software can assist with specific areas of supply chain operations. Over a third (37%) of Australian companies plan to continue adopting new SCM software, and 30% plan to start this year. Only 36% of Australian companies plan to allocate more than 5% of their budget to supply chain technology, compared to 48% of the international average.
To measure the success of tech investments, 59% of respondents said they use customer satisfaction, 44% said they compare cost reductions, 41% said logistics key performance indicators (KPIs) are used, and 41% said they measure employee satisfaction.
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Analyse how potential cyberattacks can impact the supply chain
GetApp found that 59% of Australian businesses say advanced cybersecurity is crucial to success. This year, 47% of companies plan to maintain or increase spending on advanced cybersecurity, followed by advanced data analytics (46%) and artificial intelligence (39%).
Notably, nearly a quarter (22%) of Australian respondents expect cybersecurity disruptions to be a top supply chain challenge in 2024, with potential cyberattacks cited as a top concern for 72% of Australian SMEs. In the past 12 months, over a third (35%) of Australian companies have experienced disruptions due to a cyberattack.
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Monitor supply chains to preempt disruptions
Businesses must aim to manage supply chain disruption occurrences to reduce their impact on business operations. Supply chain management software helps strategically preempt disruptions, plan accordingly to mitigate their effects, and manage supplier relationships.
Andrew Blair, Content Analyst at GetApp, says: “Logistics and supply chain professionals must equip themselves with the tools necessary to combat the multitude of threats that will disrupt supply chains. To ensure customer satisfaction, SMEs should continue investing in technology, particularly in supply chain management. Firms must reevaluate their investment strategies to increase customer satisfaction.
“Additionally, cyber threats are a business issue that continues to evolve. Cybersecurity investments can help ease growing concerns and contribute to the success of Australian companies.” continued Blair.
For more recommendations on building SME supply chain resilience, read the full report here and check out GetApp’s list of supply chain management solutions.
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About GetApp
GetApp is the recommendation engine small businesses need to make the right software choice. GetApp enables SMEs to achieve their mission by delivering the tailored, data-driven recommendations and insights needed to make informed software purchasing decisions. For more information, visit www.getapp.com.au.
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Garry Steel
