Interos recently achieved unicorn status, after raising $100m in Series C funding led by Nightdragon, valuing it at over $1billion🦄
The supply chain risk management and operational resilience technology company now has the funding to enhance its platform and help customers protect their supply chains from physical and cyber disruption.
The female-led unicorn has also released its global Supply Chain Report which assesses how the world’s largest companies are being impacted by and are defending themselves against supply chain risk. Interos interviewed 900 senior IT, IT security and procurement decision makers focusing on 3 areas of interest:
- Supply chain risk management
- Disruption, risk factors and impacts
- Current practices
Why is supply chain visibility important?
Procurement remains a hot topic which is a vital part of supply chains. IT and technology, Financial Services, and Aerospace and Defence experience similar downward trends regarding visibility: companies want more protection and visibility against vulnerabilities as a result of the sudden shock caused by the pandemic. Across the 2 sectors, this is accentuated for sub-tier levels where there is an abrupt decline in visibility for lower tiers from 95% and 80% to below 50%.
Approximately 25% are discussing supply chains on a weekly basis and over a third on an ongoing basis, where global supply chain risk management and resilience are predicted to be a top business priority for 50% of organizations in 2 years’ time.
How much damage is it causing?
Global supply chain disruption is expensive to fix, with expenditure levels being unsustainable and respondents revealed the average annual revenue cost can be as much as $194million.
Some of the most damaging risk factors include cyber risk and breaches at 52%, financial solvency at 50% and ESG at 41%.
However, damage is not always financial with 83% of respondents reporting reputational damage as a result of supply chain problems, contributing to a loss of confidence and trust from existing customers and a lack of new business opportunities.
It isn’t just the pandemic which has caused such issues, whilst it made up 51% for respondents, they also reported cybersecurity risks (42%), global financial insecurity (40%) and implementation of GDPR in Europe (37%) are all impacting their global supply chains.
There is still a way to go for organizations to protect themselves, as only 26% are using automation to assess the effectiveness of their supply chain; 50% are still using manual methods and the remainder using a combination, with AI and data analytics being the most helpful. Despite disruption, the importance of supply chain risk and reliance prompts change, encouraging more businesses to review their supply chains and ultimately reduce the impact of financial and brand damage.