More than three-quarters of supply chain executives have systems that are “too rigid” to properly respond to expected disruptions, according to a newly released survey.
Distribution center technology firm Lucas Systems, along with Wakefield Research, polled 114 U.S.-based supply chain leaders as part of a recent report. Lucas officials said that 77% of respondents indicated that “at least half of their hardware or software systems are too rigid to meet [the] need for responding to unplanned disruptions.”
Of those, 60% indicated that a lack of adaptability led to additional operating costs or losses of between 11% and 25% stemming from disruptions or addressing new requirements.
Just over half of respondents also said that their automation systems were not prepared to address unforeseen changes.
"Unplanned warehouse disruptions are on the rise since the COVID pandemic," Lucas Systems Chief Marketing Officer Ken Ramoutar said in a statement. "If your automation can't quickly adapt to in-the-moment shifts, then your warehouses are at a real disadvantage."
Eight-five percent of participating supply chain execs said their company had experienced at least one “significant, unplanned” interruption in the past year.
