New research reveals a growing resilience gap between intention and execution, with more than a third (37%) of organizations failing to follow pre-agreed crisis plans during the recent Iran-Israel conflict, highlighting the challenges faced in translating resilience strategies into action.
- 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-Israel conflict.
- As digital dependencies grow alongside physical supply chain risks, the report highlights the importance of end-to-end network visibility, integrated data and cross-functional decision making to strengthen resilience and long-term organizational continuity and performance.
12 October 2026: As geopolitical instability, climate-related disruption, cyber threats and shortages of critical materials continue to reshape supply chains, organizations are taking steps to strengthen resilience. Yet new research from BSI finds that many are still struggling to turn these resilience efforts into a coordinated, organization-wide response.
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, examines how organizations can move from individual crisis response to a more connected, enterprise-wide approach to resilience. With 80% of organizations saying supply chain data is rarely shared across functions or consistently, the findings also highlight how technology and data are becoming increasingly important to managing disruption, helping businesses improve visibility, anticipate emerging risks and make timely decisions.
Over the past 12 months 40% have experienced climate-related disruptions, more than a third (38%) were impacted by cyber incidents, 38% have 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 gap between intention and execution exists, 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 findings suggest that having a plan is not enough: organizations need processes and cross-functional structures that can adapt quickly when circumstances change.
Processes, visibility and silos are holding organizations back
The research suggests that shortcomings in processes, visibility and cross-functional coordination are preventing organizations moving from risk identification to action.
- 43% 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 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. The report highlights that visibility gaps can become more pronounced beyond Tier 1 suppliers, where dependencies relating to infrastructure, energy, logistics, geography and other critical inputs may be harder to identify.
- 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).
From contingency planning to supply chain reconfiguration
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 reconfiguration and building long-term resilience.
Looking ahead to the next six months, organizations are actively altering a range of their operations to increase flexibility and reduce exposure:
- 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.
Technology introduces new opportunities and dependencies
Technology is increasingly becoming part of the resilience equation. The report finds that businesses see AI as a potential enabler of predictive analytics, forecasting and risk monitoring, but also recognizes that greater digital dependence can introduce new vulnerabilities.
Nearly eight in 10 (79%) expect AI to introduce new supply chain risks. However, two-thirds of respondents (59%) believe artificial intelligence will increase the risk of theft and cybercrime in their supply chains, and only 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 visibility and integrated data are becoming vital for long-term organizational survival.
The opportunity is therefore not to simply deploy more technology, but to utilize it to strengthen an integrated risk management approach. AI can help organizations process larger datasets, monitor suppliers for emerging risks and model potential scenarios, but the report emphasizes that effectiveness depends on high-quality data, strong processes and human oversight.
David Fairnie, Senior Principal Consultant, Supply Chain Resilience, BSI, said: “The research shows that most organizations expect to be well prepared for disruption over the next 12 months, yet they do not always have the operational foundations needed to turn that preparedness into action. With more than half describing their approach to risk management as reactive, with 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.”
Tony Pelli, Practice Director, Supply Chain Resilience, BSI, said: “Supply chains are infinitely more complicated today, and the challenge for organizations is understanding how that complexity can increase their exposure to disruption. The risks driving disruption increasingly span multiple domains at once and they cannot be managed effectively in isolation.”
Download Building for disruption: the new outlook for supply chain resilience.
