How data mismanagement can upend companies’ supply chains and, consequently, their EBITDA margins.
%
0
5
9
10
14
17
21
28
30
The typical percentage range of EBIDTA lost by companies due to supply chain disruptions in 2021
1
-
%
%
0
8
25
45
54
68
70
76
83
of those businesses experienced significant impacts
2
Global issues are sparking supply chain prioritization
0
9
20
25
32
36
41
47
50
Accords and discord causing complications
U.S.-China trade war
The U.S. imposed a 25% tariff on Chinese goods entering the country in 2018.
The result:
A $181.6 billion surge in customs duties for importers
A rise in consumer prices and, subsequently, inflation
Negatively-impacted international competitiveness
Heightened regulatory challenges for businesses
An increase in businesses' administrative burdens
The renegotiation of NAFTA, now known as the USMCA, which took effect in 2020.
NAFTA renegotiation
The result:
Businesses struggled to navigate new trade administration requirements
0 import customs entries in 2020
-> 78 million in 2021
Trade turmoil caused by the withdrawal of the UK from the EU in 2020.
Brexit
The result:
Economic impact valued at $14 trillion
That’s 40x greater than the impact of the 2007-09 Great Recession
COVID-19 led to imbalances in supply and demand.
Global pandemic
The result:
The ongoing war in Ukraine has led to sanctions against Russia, Belarus, and supporting entities.
War in Ukraine
The result:
The Organization for Economic Cooperation and Development (OECD) estimates that the war could cost the global economy
$2.8 trillion by the end of 2023.
CEOs now recognize the importance of supply chain resiliency.
Unknowing businesses caught in breach of sanctions
$43 million in issued penalties by the U.S. government in 2022 – a 100% increase from 2021.
Two-thirds of CEOs are willing to change the way they function
46% are already changing their processes
Executives are taking notice
%
0
8
12
16
20
29
36
40
43
believe supply chains will affect profitability in the next decade
3
%
0
8
12
18
20
26
32
39
44
anticipate climate change will impact supply chains
3
%
0
8
16
20
24
29
36
40
46
plan to adjust current presence or expand into new markets
3
As a result:
For C-suite executives, the ability to withstand sudden market changes relies on:
Improved visibility and agility
%
0
1
3
5
7
8
9
12
14
of CEOs are willing to create transparency in vendor dealings
%
0
2
4
5
8
10
12
14
16
are willing to adopt technology to increase performance tracking
Enhanced automation
Improved data hygiene and management
Critical flaws in the system
High costs
Resourcing challenges
For many businesses, pivoting is not an option due to:
Alternative operational decisions (such as nearshoring)
Monitoring supply movements
Many businesses attempt to fortify their supply chains with:
%
0
9
18
26
38
43
65
78
82
make decisions based on stale data
%
0
15
28
36
45
53
65
78
85
lose revenue due to incorrect decision-making
To make more informed decisions, businesses need to invest in accurate data management.
Unfortunately, managing supply chains without assistance often results in unreliable information:
The way forward
Supply chain decisions are complex, with various interdependencies and regulatory variables. Working with a trusted trade partner can give your business access to the technology and expertise you need in order to:
Copyright 2023, Livingston International Inc. Use of site subject to Livingston's Terms of Use policy
At Livingston, we assist our clients in securing their business’ future by refining the way they approach compliance.
Visit our website
Possess visibility into real-time trade data
Uncover hidden cost-saving opportunities
Save on hiring additional workforce
Reduce the burden on trade and compliance resources
Focus on strategic initiatives
Reduce risk exposure to non-compliance
Avoid revenue loss due to sanctions and regulatory requirements
Improve resiliency and agility in the supply chain
Leverage strategic expertise rooted in solid data hygiene
1
McKinsey report
2
Interos survey
PWC CEO Report, 2023
3
Two-thirds
At Livingston, we assist our clients in securing their business’ future by refining the way they approach compliance.
Visit our website
Copyright 2023, Livingston International Inc. Use of site subject to Livingston's Terms of Use policy
1
McKinsey report
2
Interos survey
3
PWC CEO Report, 2023
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Recent events, including the U.S.-China trade conflict, the pandemic, and the war in Ukraine, have put unprecedented emphasis on supply chain prioritization in business decisions and future planning.