Supply Chain Report 2023

4f Visibility of future business opportunity

stating that their 2021 forecasts were less than 25% accurate. This has a direct impact on the supply chain’s ability to adequately plan and effectively resource to meet the demands of their client base. Nearly two thirds of tier 1 contractors expressed concerns about the lack of visibility regarding UK offshore energy business opportunities and its negative impact on confidence.

Demand visibility is a key factor for identifying resource gaps and ensuring supply chain organisations can invest with certainty to build at scale and remain competitive. Respondents to OEUK’s Supply Chain Management Sentiment survey said it was difficult to plan business activity and build accurate demand forecasts, with a fifth

Quotes taken from tier 1 contractor interviews held in June 2022

“Visibility is horrendous, the worst I have seen.”

“Struggling to understand why UK isn't seeing an increase in activity.”

“With the exception of one contract, my forecasts are only on a 4-week lookahead basis.”

“Visibility is very poor. Projects have been ongoing with no fruition for years and causing extreme uncertainty.”

“It is difficult to project and invest, it is a very reactive environment in the UK.”

“Energy transition opportunities are not as visible as they should be. In real danger of losing competitive edge in terms of skills in the UK.”

SUPPLY CHAIN REPORT 2023

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