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Technology companies are at the forefront of innovation and international footprint, but that does not mean that they are not vulnerable to supply chain interruptions
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Logistical disruptions are now recurring realities with direct financial, operational, and reputational consequences, DP World reports in its Technology Edition of its Without Logistics white paper series
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The report, primarily based on survey data from cargo owners across the technology sector supported by external sources, documents the frequency and financial impact of logistics disruptions to the technology sector
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It found that between 2022 and 2025, an average supply chain disruption cost companies US$1 million and caused over a month of operational downtime for 50% of companies. At an industry level, this translates to over US$16 billion in yearly losses
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A strategic shift is happening as reflected in the priorities ranked by technology cargo owners, with improving supply chain cost efficiency and meeting customer expectations at the top of the list
Technology companies are at the forefront of innovation and international footprint, but that does not mean that they – even the most state-of-the-art among them – are not vulnerable to supply chain interruptions.
“Logistical disruptions are no longer rare interruptions, they are recurring realities with direct financial, operational, and reputational consequences,” global logistics company DP World reports in its Technology Edition of its Without Logistics white paper series.
The report, primarily based on survey data from cargo owners across the technology sector supported by external sources, documents the frequency and financial impact of logistics disruptions to the technology sector.
It found that between 2022 and 2025, an average supply chain disruption cost companies US$1 million and caused over a month of operational downtime for 50% of companies. At an industry level, this translates to over US$16 billion in yearly losses.
In terms of impact on reputation, 87% of cargo owners at tech companies saw an increase in customer complaints following a logistical disruption. Further, 66% said disruptions actually led to lost business or contracts.
At such high rates of impact, majority of technology cargo owners have elevated disruption issues to senior decision-making teams in the past three years.
“What this report makes clear is that logistics is firmly on the boardroom agenda – shaping resilience, customer experience, and long-term growth,” said Roby Choy, DP World’s global senior vice president and technology vertical lead.
Tech C-suites are fully aware of the critical role that logistics now play in a company’s overall performance and success, and they remain “highly optimistic” about their resilience.
“In fact, 92% believe they scale efficiently over the next 3 years, and 84% agree their operations are agile enough to be able to respond quickly to unexpected future challenges.”
However, the DP World report points out that while data indicates 53% of companies recovered from major logistical incidents within a month, 41% took longer, which indicates a discrepancy between operational reality and leadership optimism.
“Closing this gap requires more than optimism, it demands a strategic shift, one that our research suggests is already underway,” the Dubai-headquartered logistics firm said.
The strategic shift is reflected in the priorities ranked by technology cargo owners, with improving supply chain cost efficiency and meeting customer expectations at the top of the list.
These priorities will have to be handled in the next three years within the context of both geopolitical and global trade uncertainties, which technology cargo owners recognize as the “the greatest threats” with the effects already starting to be felt by the industry.
“Technology firms that act decisively, treating logistics as a strategic driver rather than a defensive function, will be best positioned to withstand disruption and protect brand reputation,” the DP World report notes.
Sustainability and ethical impact is another significant area that technology cargo owners recognize, with 82% of them expecting investors and customers to step up pressure over the next three years on compliance to ESG (environmental, social and governance) standards. Alongside ESG compliance, tech firms are factoring in the geopolitics around rare earth metals, which have already prompted rethinking on other supply sources, recycling, and material usage.
DP World said tech companies are tapping into and amplifying the use of technology-led resilience with 87% seeing the highest return on investment from logistics investments coming from supply chain digitalization, and 82% planning to increase investments in digitalization and automation.
“Embedding logistics into core strategic planning is now essential,” the DP World report concludes. “It should carry the same weight as financial management and market expansion – safeguarding revenue, protecting brand equity, and sustaining customer trust in an increasingly volatile global environment.”