Most Organizations Unprepared for Supply Chain Disruption: ISM Study

A joint research initiative by ISM (Institute for Supply Management) and Amazon Business has uncovered a critical gap in organizational preparedness: while most companies acknowledge the strategic importance of supply chain resilience and have initiated shifts toward greater flexibility, the majority remain inadequately prepared for actual disruption events. This disconnect between strategic awareness and operational readiness represents a significant vulnerability in the global supply chain ecosystem. The research highlights that organizations recognize the need for supply chain adaptability but have failed to translate this awareness into concrete contingency planning, redundancy mechanisms, or crisis response protocols.

This gap is particularly concerning given the frequency and diversity of recent supply chain disruptions, from geopolitical tensions and pandemic aftereffects to port congestion and transportation bottlenecks. Companies that lack comprehensive disruption response plans face extended recovery times, elevated costs, and potential revenue loss when incidents occur. For supply chain professionals, this research underscores the urgency of moving beyond strategic declarations to implementing tangible resilience measures.

Organizations must develop scenario-based contingency plans, diversify supplier networks, establish real-time monitoring capabilities, and conduct regular stress tests of their supply chain infrastructure. The gap between intention and execution identified in this study represents both a risk and an opportunity for organizations to differentiate themselves through superior operational resilience.