A lack of insurance solutions is among the greatest challenges faced by nearly eight out of 10 global food and drink companies in addressing supply chain risks.
Only 30% of such companies questioned by WTW feel confident they have sufficient insurance, while 79% think this will be a major obstacle in the next three to five years.
A total of 78% admitted that they lacked the data and knowledge to understand the risks to their supply chains, while 76% said supplier concerns about proprietary knowledge and intellectual property were impeding transparency.
The research, WTW’s 2023 Food, Beverage and Agriculture Supply Chain Risk Report, shows that while relevant supply chains have held up well in the face of recent challenges, especially the pandemic and war in Ukraine, the industry has been deeply impacted by production shutdowns, commodity shortages, energy price hikes and inflation.
Of the companies, 73% said that losses specifically related to supply chain risk had been higher or much higher than expected during the past two years. A total of 68% had made some improvements in their supply chain management in response to Covid, while a further 20% said that they had completely transformed their approach.
