After two years of disruption from the Covid-19 pandemic, Irish CEOs are focused on reconfiguring their supply chains to manage geopolitical risks.
According to a new CEO Outlook Survey conducted by EY, 97 per cent of Irish CEOs have said the pandemic has had some impact on their industry. Meanwhile, 37 per cent said it had fundamentally reshaped it for the better.
Some 94 per cent said they were reconfiguring supply chains, of which 45 per cent said they were doing it to manage geopolitical risks while 24 per cent said they were doing it to reduce logistic costs and increase the number of suppliers to ensure resilience.
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Alan Dickson, EY Ireland director, consulting and procurement and supply chain commented: “While supply chain strategy has been of significant importance for successful businesses for decades, recent global developments have thrust supply chain security and resilience into the spotlight.
“Supply chain disruptions are likely to intensify even further and have a ripple effect across the world as China doubles down on its zero-Covid strategy.
“Businesses need to undertake a root and branch analysis of their supply landscape, including second and third tier, to ensure that the strategy in place still holds true.”
As well as supply chain issues, Irish CEOs said they have seen a significant increase in input prices amid escalating inflation. Some 41 per cent said they have seen the largest increases in transportation and logistics.
It comes as freight rates have jumped more than 400 per cent from their 2019 levels.