Supply Chain Report 2023

Summary Information

UK competitiveness

• With demand recovering from the pandemic, the Russian conflict in Ukraine has sparked an energy supply crisis. • The supply chain has played a crucial role in shocks to energy supply. • The supply chain is diversifying its offerings to support energy security and drive the energy transition. Energy security

• CPI inflation reached 11% in 2022 . • Supply chain contract margins are being eroded.

11%

Contract behaviour

• A 10% improvement in Supply Chain Principles adherence demonstrates more collaborative effort throughout the supply chain. • Risk is being passed down the supply chain to those least able to absorb it. • There are inefficiencies in the ways ‘accounts payable’ are processed.

Product and service delivery

• Competition for resources including equipment and people has intensified. • 78% of organisations have experienced an increase in overall product and service lead times and a fall in on-the-shelf availability. • On average, product lead times have increased by 30% .

78%

10

SUPPLY CHAIN REPORT 2023