Most Organizations Unprepared for Supply Chain Disruption: ISM Report

A joint research initiative by the Institute for Supply Management (ISM) and Amazon Business has uncovered a critical gap in supply chain preparedness: most organizations are failing to translate strategic supply chain priorities into operational readiness for disruptions. Despite increased attention to supply chain resilience following recent global disruptions, the research indicates that many companies have not adequately implemented the systems, processes, and contingency plans necessary to withstand real-world supply chain shocks. This disconnect between stated strategic focus and actual preparedness represents a significant vulnerability for enterprises across sectors.

Organizations acknowledge the importance of supply chain resilience but have struggled to move from planning to execution. The findings suggest that many companies remain reactive rather than proactive in their approach to disruption management, leaving them exposed to inventory challenges, service level failures, and potential revenue impacts when disruptions occur. For supply chain professionals, this research underscores the urgency of converting strategic intentions into concrete action plans, including scenario modeling, supplier diversification strategies, safety stock optimization, and cross-functional collaboration frameworks.

The gap between awareness and implementation presents both a challenge and an opportunity for organizations to differentiate themselves through superior operational resilience.