New research reveals a growing crisis readiness gap between intention and execution, with more than a third (37%) of organizations failing to follow pre-agreed crisis plans during the recent Iran-US-Israel conflict, increasing the risk of shortages, delays and higher costs for consumers.
- Global survey of supply chain professionals finds two-fifths of businesses were impacted by climate-related disruption in the past year, alongside geopolitical instability (38%), cyber incidents (38%) and raw material shortages (35%).
- Despite 81% expecting to be better prepared for future disruption, 54% say supply chain risk is managed primarily reactively, while 37% did not follow their pre-agreed crisis plan during the recent Iran-US-Israel conflict.
- As digital dependencies grow alongside physical supply chain risks, BSI highlights the importance of end-to-end network visibility to strengthen resilience and support long-term organizational success.
8 October 2026: Organizations are increasingly confident they can withstand the next supply chain disruption, but many lack the processes, visibility and coordination needed to respond effectively when it happens, new research from BSI finds.
While 81% expect to be better prepared for disruption over the next 12 months, more than half (54%) say their approach to supply chain risk management remains largely reactive. Just one in four (27%) can take action on the same day when disruption strikes, while 37% did not follow a crisis plan during their most recent disruption.
Drawing on a global study of more than 1,400 managers across supply chain, finance, procurement, operations and legal functions, the report Building for disruption: the new outlook for supply chain resilience, raises fears that the gap between intention and implementation could leave businesses exposed to shortages, delays and higher operating costs. With more than a third (36%) of organizations planning to increase prices over the next six months to offset supply chain costs, the consequences are likely to extend beyond business operations and be felt by consumers.
Over the past 12 months 40% have experienced climate-related disruptions, more than a third (38%) were impacted by cyber incidents, 38% having been affected by conflict, sanctions or political instability, 35% faced component or raw material shortages, and nearly four in 10 (39%) encountered transport disruptions.
A significant crisis readiness gap exists between intention and execution, with 45% of organizations planning to undertake cross-functional scenario planning, yet few carrying it out consistently. Even amongst those with an always-on crisis response team, activation can take up to three days (33%). The gap is highlighted by the finding that 37% did not follow their pre-agreed crisis plan during the recent Iran-US-Israel conflict.
Processes, visibility and silos are holding organizations back
The research suggests that shortcomings in processes, visibility and cross-functional coordination are preventing organizations from responding effectively to supply chain threats.
- 43% of organizations lack a formal, documented process for managing supply chain risks, and slow or unclear approval processes are preventing decisions being made for more than two in five (44%), while only four in 10 (39%) have clear protocols for cross-functional communication when disruptions arise.
- Effective decision-making is also being hampered by poor visibility, with 38% citing a lack of timely and accurate data as a barrier to responding quickly and confidently to supply chain threats. Just a third (33%) have complete visibility of supplier locations and geographic exposure.
- More than one-third (38%) say silos and poor cross functional coordination is a barrier to effective decision making, and 28% say they experience conflicting priorities between teams and departments. Only 4 in 10 (38%) say cross-functional teams meet regularly (at least weekly).
Managing the permacrisis and AI
Despite these gaps, organizations are beginning to rethink how they build resilience. Rather than focusing solely on recovering from the last disruption, many are making structural changes to how and where they source, store and move goods, reflecting a shift towards building long-term resilience in an increasingly volatile operating environment.
Looking ahead to the next six months, organizations are actively altering their operations to build endurance:
- 80% plan to increase strategic inventory stockpiles
- 79% intend to change transport modes
- 78% are moving to nearshore key operations
- 33% are seeking new supplier networks
- 28% plan to reduce product ranges or SKUs
- 24% expect to shift trade routes entirely
However, despite these efforts, only 35% say they feel fully prepared for geopolitical shocks, while just 34% feel ready to manage raw material shortages and 37% cyber incidents.
The report also highlights additional emerging threats on the horizon. Two-thirds of respondents (59%) believe artificial intelligence will increase the risk of theft and cybercrime in supply chains, yet barely a third (34%) feel fully prepared to handle severe technology failures or cyber incidents. As digital dependencies grow alongside physical supply risks, BSI emphasizes that end-to-end network visibility will be vital for long-term organizational survival.
Tony Pelli, Practice Director, Supply Chain Resilience, BSI, said: “2026 has been the hottest summer on record for several countries, and with conditions set to remain volatile into 2027 due to El Niño patterns, the human element of these disruptions is stark. A set of unrelenting environmental and geopolitical ruptures means that supply chain breakdown directly impacts everyday lives. When networks fail, people ultimately bear the burden through rising shelf prices and an inability to access the essential goods they rely on.”
David Fairnie, Senior Principal Consultant, Supply Chain Resilience, BSI, said: “The research shows that the majority of organizations expect to be well prepared for disruption over the next 12-months, yet they don’t have the foundations of resilience firmly in place. With more than half describing their approach to risk management as reactive, and a widespread lack of formal, documented processes for managing supply chain risk, there is an opportunity to embed best practice to enable proactive resilience.”
“Resilience means strengthening scenario planning, improving cross-functional coordination, increasing supply chain visibility, and ensuring leaders have the information they need to act quickly and confidently when disruption strikes.”
Download Building for disruption: the new outlook for supply chain resilience.
