UK companies overlook geopolitical supply chain threats, RSM survey finds

Only 30% of UK businesses actively monitor geopolitical risks to their supply chains, according to RSM UK’s Supply Chain Integrity survey.

More than a third (36%) of respondents said their supply chain strategy is due an update, despite the breadth of current disruption.

The findings coincide with the government’s Global Supply Chains report on risk and resilience, which highlights the role of secure supply chains in the UK’s security and economic outlook.

RSM’s research also found high confidence levels among respondents despite limited geopolitical monitoring.

Overall, 88% of businesses believe their supply chains can withstand global shocks, with 24% ‘very confident’ and 64% ‘fairly confident’ in their monitoring processes.

This sits alongside recent turbulence, with 53% admitting facing more than one supply chain issue in the past year.

The most frequently monitored threats are operational risk (58%), economic risk (56%) and cyber and technology risk (55%).

Around 42% of businesses described their supply chain management as ‘well-structured and proactive’.

RSM UK sustainability and ESG head Rich Hall said: “These are exceptionally difficult times for UK business leaders who are currently battling against acute disruption, in part due to the ongoing conflict in Iran, so the government’s increased focus on this issue is welcome and timely.

“Whether UK businesses can survive new global geopolitical shocks will largely depend on their supply chain resilience, and whether they are adequately monitoring the increasingly complex range of risks now faced over relevant timescales.”

Among C-suite supply chain leaders, 43% said they were ‘very confident’ in their supply chains, compared to 19% of operational supply chain managers.

RSM UK supply chain risk and governance lead Mark Crawford said: “Our research suggests some businesses may be in danger of falling into a supply chain confidence trap.

“While confidence among C-suite supply chain leaders is high, the reality on the ground may reveal a less rosy picture.”