A new report from global supply chain and logistics consultancy SCALA has warned that many UK businesses remain dangerously exposed to disruption because too much of their supply chain resilience still depends on too few options. The findings come as freight and energy markets face renewed uncertainty linked to the worsening situation in the Middle East.
Based on a survey of senior supply chain executives, SCALA’s report, The Resilience Gap: Assessing the Risks and Readiness of Global Supply Chains, highlights a series of “single points of failure” across production networks, transport routes and revenue structures. The consultancy said the timing is especially significant, with greater instability around shipping and energy flows increasing the risk of rerouting, delays, higher costs and weaker service performance.
The research found that manufacturing activity remains heavily concentrated in China, Europe and the UK, while “Other South East Asia,” including Taiwan and Vietnam, is acting as a secondary base. Beyond those areas, respondents reported relatively limited manufacturing footprints. At the commercial level, the study found that 47% of businesses generate more than half of their sales from just their top three customers, adding another layer of vulnerability.
SCALA also found that resilience planning remains uneven. Only 33% of businesses said they have already implemented the measures needed to respond effectively to major disruption. Another 52% said they have started but only partially implemented those strategies, while 14% said they have not yet begun.
The consultancy said these results reveal two linked areas of concern. A narrow geographic footprint increases exposure to geopolitical tension, trade barriers, climate events and transport bottlenecks, while customer concentration means any disruption can quickly turn into a serious commercial problem.
Chris Clowes, executive director at SCALA, said many supply chains were built gradually to optimise cost and service in a more stable business climate. In current conditions, he said, dependence on a limited number of production regions or major customers leaves companies with very little flexibility when shocks hit. He added that businesses should identify where they lack alternatives and put practical options in place across sourcing, transport and customer portfolios before the next disruption tests the system.
SCALA’s report recommends a number of steps to reduce these weak points, including end-to-end risk mapping across suppliers, routes, systems and customer dependencies; dual- or multi-sourcing of critical components from different regions; development of secondary manufacturing or assembly options; centre-of-gravity analysis to rebalance supply chain footprints; and structured programmes to diversify demand while maintaining service levels for strategic accounts.
