In the recent study from BCG, "The CEO Outlook: Caution, Optimism, and Navigating the Road Ahead.” around 80% of CEOs see a strong year, however, that is tempered by the 75% who expect supply chains to have a negative impact.
In the global study, companies identified the following supply chain issues:
- End-to-end supplier network visibility
- Proactive supplier risk management
- 3-commerce and digital sales
- Dynamic pricing
- Change management
- Risk measurement and governance
Other highlights from the survey include:
Uncertainty is Still Highly Relevant in 2023
Heading into 2023, C-suite leaders generally hold a cautiously optimistic view of their company's performance while recognizing uncertainty is still the biggest challenge.
Around 75% think macro uncertainty is a key challenge, with Asian leaders being more confident than the rest of the world.
In the survey, only half of the C-suite leaders are expecting additional global shocks in 2023. However, the recent failure of Silicon Valley Bank and other shows how difficult it is for executives to predict the future, even in the near term.
Key Actions in 2023- Resetting for Growth
In response to the uncertainties, companies are taking action on all fronts, with cost reduction, talent development, and innovation being the most important ones.
Regardless of region, cost reductions are a key priority, with a focus on efficiency, instead of pure cost-cutting
North America: Particularly focused on talent, both reducing headcount and improving EVP, to address talent challenges
Asia: Has a stronger growth mindset, taking more customer/product actions (e.g., improve customer retention)
Europe: More conservative towards innovation, but are more actively investing in climate & sustainability