Sphera: Leaders Impaired by Lack of Supply Chain Visibility

Leaders in supply chain, sustainability and procurement have to contend with all manner of challenges nowadays. There are externalities aplenty in the current political and economic climate, with companies having to stay agile to protect themselves from shocks.

Geopolitical tensions, complex regulations, fragile supply networks, extreme weather and volatility in the global economy are all things that a leader must consider when strategising.

A recent survey by software and consultancy group Sphera looks into how some of the world's most senior procurement and sustainability leaders are tackling these challenges.

Worryingly, the research reveals a critical oversight that many of these executives fall foul of: a lack of visibility beyond their Tier 1 suppliers.

Sphera believes that this knowledge gap can obscure up to 85% of potential supply chain risks, which poses some pretty major challenges to the sustainability goals of companies around the world.

Limited cooperation halts visibility at Tier 1

Sphera's survey, engaging 500 senior decision-makers, including Chief Procurement Officers and Chief Supply Chain Officers, indicates a widespread failure to achieve transparency beyond Tier 1 suppliers.

While relationships at the Tier 1 level are generally well understood, suppliers' reluctance to disclose information about their upstream networks is common.

This hesitance impedes organisations from gaining visibility into the deeper layers of their supply chains, which include Tier 2, Tier 3 and Tier 4 suppliers.

These sub-tier suppliers contribute components or products to Tier 1 suppliers but do not have direct transactions with the primary buyer.

The absence of N-Tier, or multi-tier, visibility hinders businesses from pinpointing vulnerabilities in their supply chains, limiting their ability to address issues such as supplier insolvency or local disruptions.

Sphera's study finds that 85% of supply chain risks and critical events are rooted in these sub-tiers.

"When disruptions hit, businesses need options," says Paul Marushka, CEO and President at Sphera.

"Firms with limited visibility into their supply chain face risks and exposures from sub-tier suppliers vulnerable to disruptions.

"Sphera’s N-Tier survey results underscore the importance of comprehensive supply chain mapping.

"Companies with a proactive approach can successfully navigate any supply chain disruption."

Risk management fails without reliable data

Sphera’s findings suggest technical challenges persist even for companies attempting to monitor sub-tier suppliers.

A primary issue is the poor quality and inconsistency of data, with around 70% of organisations surveyed reporting that information from Tier 2 to Tier 4 suppliers is often inaccurate or unreliable.

This data inconsistency severely hampers risk management and decision-making processes.

Without dependable data, even the most sophisticated systems cannot deliver true supply chain resilience. Furthermore, despite technological advancements, about 26% of respondents continue to depend on manual risk assessments, which introduce human error and elevate the risk of oversight.

Other organisations employ tools that inadequately address the needs of complex supply chain environments, resulting in fragmented systems where technology fails to provide substantial insight or prompt action.

Resilience now depends on transparency

Global supply networks face increasing pressure from geopolitical changes, climate-related events and evolving regulatory frameworks such as the Corporate Sustainability Due Diligence Directive and the EU Deforestation Regulation.

These elements are adding layers of complexity to supply chain management.

Despite these challenges, nearly half of the organisations surveyed by Sphera indicate that their interest in N-Tier visibility stems from priorities beyond mere regulatory compliance.

These priorities include risk mitigation, operational continuity and safeguarding corporate reputation.

This perspective suggests that many companies now view N-Tier transparency as a business-critical function rather than just a regulatory mandate.

The shift toward deeper insights into the supply chain reflects a strategic transition from reactive risk management to proactive resilience-building.

Ultimately, Sphera’s research indicates a future where investment in technology and supplier collaboration becomes a standard practice.

With improved systems and stronger data, organisations can comprehensively map their supply chains, identify emerging threats and prepare for potential disruptions.

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