UK businesses remain highly exposed to supply chain disruption, with only a third fully prepared for future shocks, according to a report by consultancy SCALA.
The study found that 47% of companies rely on just three customers for more than half of their revenue, creating significant vulnerability in an increasingly volatile global environment. Disruptions to shipping routes and energy supplies, particularly amid tensions in the Middle East, are expected to impact costs, lead times and service levels.
© Stephan Bock | Dreamstime
Preparedness levels remain uneven, with 33% of firms having fully implemented resilience strategies, while more than half are still developing plans and 14% have yet to begin.
The report also highlights structural risks linked to concentrated manufacturing in regions such as China, Europe and the UK, combined with limited customer diversification. These factors create "single points of failure" across supply chains.
SCALA executive director Chris Clowes warned that supply chains built for cost efficiency are now under strain, urging businesses to diversify sourcing, transport and customer bases to improve resilience ahead of future disruptions.
Source: www.retailgazette.co.uk
