Up to 93 per cent of retailers are taking a ‘firefighting’ approach to supply chain disruptions, putting them at risk of revenue losses, especially during the upcoming peak season.
New research from DP World shows that most retailers remain reactive to supply chain disruptions such as logistics issues and long border delays.
According to the company, retail supply chains face more than 18,000 disruptions each year, with potential losses topping $7.5 billion and average incident costs exceeding $400,000.
Taking a ‘firefighting’ approach to such transport issues poses a high risk of revenue losses, threatening peak-season margins at a time when customer expectations and competition are highest.
About 66 per cent of businesses say their brand reputation has been damaged by supply chain failures, the report finds.
“Retailers are under extraordinary pressure to deliver reliability in a world where disruption has become the norm,” said Tony Zasimovich, global vertical leader – retail at DP World. “This research shows that even the best-prepared businesses are being forced to react rather than plan.”
Zasimovich stressed that retailers should move from firefighting to forecasting and build a supply chain that anticipates disruption before it happens.
The study also highlights that while 88 per cent of retailers cite border delays as a recurring challenge, only 43 per cent invest in customs compliance and 45 per cent in international freight.
“Retailers have made strong progress in digital visibility and storage efficiency, but true resilience depends on keeping goods moving,” said Beat Simon, COO of logistics, DP World.
“Investment must now shift toward strengthening the flow itself, through reliable transport capacity, smarter customs processes and integrated data visibility. By connecting these elements, retailers can create supply chains that perform consistently, even in volatile conditions,” Simon added.
The data forms part of DP World’s global study of 680 senior logistics leaders across eight industry verticals, including 75 senior decision makers within retail businesses.
