European Supply Chain Leaders are Mitigating Risks in their Supply Chain due to High Costs

European energy risks are increasingly negatively impacting the European economy, driving up inflation and eroding customer purchasing confidence. This is of particular concern to CSCOs, as the ability to effectively manage and optimize energy resources could provide long-term competitive advantages that can counter such adverse effects. 

According to a recent Gartner survey of European heavy industry organizations, 61% are already passing increased energy costs onto their customers as a short-term solution; however, this strategy may have the unwanted consequence of further reducing consumers' willingness to spend. Of those surveyed, 73% indicated that their primary focus was short-term demand reduction optimization strategies. Additionally, over 40% identified internal obstacles like conflicting priorities and ROI as their most significant challenges in managing energy resources successfully. 

To combat these issues, CSCOs with responsibility for ESG risk and governance should consider leveraging new business models and optimization strategies to break the reinforcing cycle of constrained energy supplies, volatile energy costs, and declining consumer confidence. They should also take advantage of available energy scenarios for long-term competitive decision-making while reducing exposure to short-term energy risks. Finally, they should quantify the cost of not investing in adequate energy management systems to make a compelling business case for such investments.

As energy costs continue to rise and consumer confidence wanes, CSCOs must take action to protect their organizations from increasingly negative impacts on their bottom line. To do this, they should reach out to Critical Risk Solutions (CRS) for help in developing a strategy on how to mitigate the risks in their supply chain. 

At CRS, we have the expertise and experience needed to help organizations better manage and optimize energy resources. Our team of experts utilizes a risk-based approach that helps businesses identify the potential pitfalls of their current strategies and develop new processes that reduce costs while increasing customer satisfaction. We can also provide advice and insights into emerging trends and technologies that can improve decision-making when managing energy resources.

So reach out to us today - we’ll provide the fresh perspective you need to reduce your supply chain risks or even eliminate them once and for all.