Supply Chain leaders lack understanding of key processes

Many Supply Chain leaders find themselves hampered by a lack of understanding of their business processes and spend too much time addressing immediate issues, according to a recent survey.

The 2025 Process Optimisation Report, published by Celonis, indicates that 84% of global Supply Chain leaders feel they urgently need to better comprehend how their business processes function, with 93% acknowledging untapped value within their departmental processes.

The main constraint hindering leaders from deepening their understanding stems from operating in a reactive "firefighting" mode, with 36% reporting this as a primary challenge. Additional barriers include insufficient internal information sharing at 34%, uncertainty about where to begin process improvements also at 34%, and incompatible systems at 32%.

Pascal Coubard, the APAC Lead for Celonis, highlighted the need for Supply Chain leaders to transition from a reactive stance addressing unforeseen issues such as geopolitical events. "A process-led approach uses process analysis, management, and monitoring to optimise how things are done within and across the supply chain, so enterprises can both solve existing problems more easily and prevent new issues from cropping up," he said.

The report, which surveyed 401 senior Supply Chain leaders from numerous countries including Australia, Germany, the UK, and the US, explores the challenges faced by Supply Chain departments ranging from costs to geopolitical instability, and the measures taken to enhance their processes using tools such as process mining and AI.

Celonis, regarded as a global leader in Process Mining and Process Intelligence, conducted the survey from a pool of companies with minimum revenues of USD $500 million, with a substantial number of these entities earning between USD $2 billion and USD $10 billion.

There is a consensus amongst 83% of the surveyed leaders that improving processes can significantly help manage continuous changes and serve as buffers against supply chain disruptions. However, diverse views emerged regarding the regularity of such disruptions, with only 8% of APAC leaders strongly agreeing these are now daily occurrences, contrasted by 26% in the US.

The report identifies that nearly half of leaders see rising freight and shipping costs as paramount challenges, followed by raw material shortages and increasing volatility and complexity in supply chains.

To address these issues, 70% are engaging newer visibility solutions like process mining, whereas traditional methods like shipment visibility and control towers are used by just 35%.

Mr Coubard noted, "Very few say they are rethinking transport routes and modes, which is surprising as there is a prevailing sense that Supply Chain teams are continually trying to optimise in these areas. However, two-thirds are diversifying sourcing strategies so they are less dependent on specific suppliers, and almost half are exploring more localised production and sourcing. These actions are likely to increase the complexity of supply chains."

Analysis across four sectors shows Supply Chain is leading in process mining adoption with 43% already utilising it, and an additional 49% planning to within a year. "And not only are Supply Chain leaders ahead of the game in process mining, they are also using AI to improve processes. A convincing 81% say they expect AI to be used to directly improve their business processes in the coming year," added Mr Coubard.

AI usage is already well-integrated within supply chains, with many organisations employing it for automated inventory management, demand forecasting, and logistics automation. Expectations are high for AI adoption in areas with lower current integration, such as transport network and route planning, in the near future.