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Procurement and supply chain resilience in the face of global disruption

The importance of resilience for supply chains to thrive

In recent years, global disruptions have become more frequent and severe. The COVID-19 pandemic, lockdowns, the conflict in Ukraine, and the growing need to embrace sustainability have shown how important resilience is for supply chains. Resilient businesses adapt, recover, and thrive by being proactive. In partnership with Deloitte, our report explores how organisations have faced these challenges and what steps they can take to strengthen their supply chains.

The report draws on insights from a survey of 468 professionals worldwide. It clearly links resilience and businesses’ actions, such as restructuring, investing in their teams, and improving supply chain visibility (SCV). It also highlights the need to turn Environmental, Social, and Governance (ESG) goals into real progress. With practical advice and real-world examples, this report is a guide for organisations to prepare for the future and stay strong, no matter what disruptions arise.

This report has been created in partnership between Deloitte and the Chartered Institute of Procurement & Supply (CIPS) and provides insights at a global level across all industries and sectors, into how the profession manages disruption.

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Procurement and supply chain resilience in the face of global disruption

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There is no singular approach to embedding resilience in an organisation.

1. Moving Away from Single to Dual/Multisource

  • Organisations are reducing reliance on single suppliers to minimise vulnerabilities.
  • 70% of private sector respondents and 63% in the public sector have adopted dual or multisource approaches within strategic spend categories, reflecting a shift toward greater flexibility and risk mitigation.

2. Outsourcing vs. Insourcing Operations

Disruption has led organisations to reassess their operating models:

  • 46% have outsourced operations in areas like recruitment and facilities management to focus on core activities.
  • 34% have chosen to insource, particularly in sectors like manufacturing, to strengthen control over critical processes.

3. Supply and Consumer Diversification

  • To reduce exposure to volatility, nearly 40% of organisations have entered new supply markets.
  • Diversification enhances resilience by balancing reliance on existing markets while expanding operational reach.

4. Restructuring Procurement and Supply Chain Functions

  • 45% of organisations have restructured to better align procurement and supply chain functions with emerging challenges.
  • Such efforts often lead to improved preparedness, with 61% of those who restructured reporting greater confidence in facing future disruptions.

5. Greater Visibility of Supply Chains

  • Only 13% of organisations have fully mapped supply chain networks, while 71% have limited or no visibility beyond Tier 2.
  • Increasing visibility enables early identification and response to disruptions, reducing risk and enhancing continuity.
 

Strengthening supplier relationships and contract management is key.

There are four core areas recommended to actively invest time and resources into to be more prepared:

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Organisations that recognise the magnitude of Environmental, Social, Governance (ESG) risks and opportunities and act accordingly will prepare themselves for the inevitable ESG requirements that we face in the coming years.

 

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Risk management key themes

Carbon Management - What is Carbon Management? Supply Chain Supply chain strategy Ethical risk
Vendor risk Commodities Risk assessment Sustainability

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