New research reveals a growing crisis readiness gap between intention and execution, with more than a quarter of Australian (27%) of organizations failing to follow pre-agreed crisis plans during the recent Iran-Israel conflict, increasing the risk of shortages, delays and higher costs for consumers.
- Global survey of supply chain professionals finds more than a third (35%) of Australian organizations were impacted by climate-related disruption in the past year, alongside cyber incidents (40%), geopolitical instability (39%), and raw material shortages (29%).
- Despite 87% expecting to be better prepared for future disruption, 60% say supply chain risk is managed primarily reactively, while 27% did not follow their pre-agreed crisis plan during the recent Iran-Israel conflict.
- As digital dependencies grow alongside physical supply chain risks, BSI highlights the importance of end-to-end network visibility to strengthen resilience and support long-term organizational success.
12 October 2026 (Sydney, Australia): Organizations are increasingly confident they can withstand the next supply chain disruption, but many lack the processes, visibility and coordination needed to respond effectively when it happens, new research from BSI finds.
While 87% expect to be better prepared for disruption over the next 12 months, 60% say their approach to supply chain risk management remains largely reactive. Just one in five (21%) can take action on the same day when disruption strikes, while 27% did not follow a crisis plan during their most recent disruption.
Drawing on a global study of more than 1,400 managers across supply chain, finance, procurement, operations and legal functions, the report Building for disruption: the new outlook for supply chain resilience, raises fears that the gap between intention and implementation could leave businesses exposed to shortages, delays and higher operating costs. With nearly a third (33%) of organizations planning to increase prices over the next six months to offset supply chain costs, the consequences are likely to extend beyond business operations and be felt by consumers.
Over the past 12 months 35% have experienced climate-related disruptions, four in 10 (40%) were impacted by cyber incidents, 39% having been affected by conflict, sanctions or political instability, 34% encountered transport disruptions, and 29% faced component or raw material shortages.
A significant crisis readiness gap exists between intention and execution, with 44% of organizations planning to undertake cross-functional scenario planning, yet few carrying it out consistently. Even amongst those with an always-on crisis response team, activation can take up to three days (38%). The gap is highlighted by the finding that 27% did not follow their pre-agreed crisis plan during the recent Iran and Israel conflict.
Processes, visibility and silos are holding organizations back
The research suggests that shortcomings in processes, visibility and cross-functional coordination are preventing organizations from responding effectively to supply chain threats.
- About half (49%) of organizations lack a formal, documented process for managing supply chain risks, and slow or unclear approval processes are preventing decisions being made for 45%, while just over a third (37%) have clear protocols for cross-functional communication when disruptions arise.
- Effective decision-making is also being hampered by poor visibility, with 35% citing a lack of timely and accurate data as a barrier to responding quickly and confidently to supply chain threats. About a third (34%) have complete visibility of supplier locations and geographic exposure.
- Four in 10 (40%) say silos and poor cross functional coordination is a barrier to effective decision making, and 20% say they experience conflicting priorities between teams and departments. Just over a third (36%) say cross-functional teams meet regularly (at least weekly).
Managing the permacrisis and AI
Despite these gaps, organizations are beginning to rethink how they build resilience. Rather than focusing solely on recovering from the last disruption, many are making structural changes to how and where they source, store and move goods, reflecting a shift towards building long-term resilience in an increasingly volatile operating environment.
Looking ahead to the next six months, organizations are actively altering their operations to build endurance:
- 82% plan to increase strategic inventory stockpiles
- 84% intend to change transport modes
- 79% are moving to nearshore key operations
- 32% are seeking new supplier networks
- 28% plan to reduce product ranges or SKUs
- 20% expect to shift trade routes entirely
However, despite these efforts, only 39% say they feel fully prepared for geopolitical shocks, while just 40% feel ready to manage raw material shortages and 44% cyber incidents.
The report also highlights additional emerging threats on the horizon. Two-thirds of respondents (67%) believe artificial intelligence will increase the risk of theft and cybercrime in supply chains, yet less than half (44%) feel fully prepared to handle severe technology failures or cyber incidents. As digital dependencies grow alongside physical supply risks, BSI emphasises that end-to-end network visibility will be vital for long-term organizational survival.
Tony Pelli, Practice Director, Supply Chain Resilience, BSI, said:
“2026 has been the hottest summer on record for several countries, and with conditions set to remain volatile into 2027 due to El Niño patterns, the human element of these disruptions is stark. A set of unrelenting environmental and geopolitical ruptures means that supply chain breakdown directly impacts everyday lives. When networks fail, people ultimately bear the burden through rising shelf prices and an inability to access the essential goods they rely on.”
Charlene Loo, Managing Director, BSI Australia, said:
“The research shows that while many organizations expect to be better prepared for disruption over the next 12 months, most are still managing supply chain risk reactively. As Australia approaches another hot summer with an increased risk of severe bushfires, relying on ad-hoc responses leaves businesses vulnerable to major operational bottlenecks and spiralling costs.
“Building true resilience requires closing the gap between intention and execution. For Australian businesses preparing for seasonal climate shocks, this means moving away from reactive crisis management toward strengthening scenario planning, improving cross-functional coordination, and establishing clear supply chain visibility so leaders can act quickly and decisively when disruption hits."
