The technology sector relies on supply chains that are global, fast-moving and inter-dependent.

To cope with mounting disruption – from climate change uncertainty to geopolitical and economic tension – technology businesses must share information and data more effectively with their supply chain and logistics partners.

But Course for Change, our research report into supply chain resilience, conducted together with FT Longitude, finds that many tech companies are not collaborating enough – despite the risks: technology companies lost, on average, more than 3.6% of their annual revenue due to supply chain disruption in their most recent fiscal year.

Almost a third (31%) of senior supply chain, logistics and operations leaders in the technology sector lack the capabilities to drive enhanced collaboration and data sharing with supply chain partners. Collaboration skills are now more in demand than any other area of supply chain talent.

To build resilience and stop the losses, companies must prioritise deeper collaboration with their partners.

Intelligence is stronger shared, not siloed

Large tech businesses often operate through a model of outsourced manufacturing and production. This often creates top-down relationships with suppliers and logistics service providers (LSPs). From a resilience perspective, this is a mistake, according to Frank McKay, Chief Supply Chain and Procurement Officer at global electronics manufacturing services company Jabil. “We treat our suppliers like customers because they’re so important,” he says. “We want to partner with them, because the impact of a failure is potentially catastrophic.”

Leading tech businesses are doing the same. The ‘resilience frontrunners’ in our research, a small group of tech businesses that lost less than 1% of revenue to supply chain disruption in the past fiscal year, are significantly ahead on collaboration:

• 88% map their full supply networks with partners, compared with just 43% of the least resilient tech businesses, which we call the ‘followers’.
• 85% maintain open and frequent communication channels to support rapid decision-making when disruption strikes, vs only 48% of followers.
• 79% invest in long-term partnerships and trust-building to ensure stronger collaboration during periods of crisis, compared with only 57% of followers.

This approach is vital in the technology sector, where supply chains are particularly complex.

There are nuances across the sector.

1. Semi-conductor manufacturers, for instance, have high capital costs and zero tolerance for downtime.
2. Consumer electronics businesses prioritize speed-to-market and often operate to rigid launch dates.
3. Home appliance companies deal with demand volatility and upstream challenges create a range of pressures.

How leading tech companies collaborate better with partners

1. Sharing data
   Tech companies are increasingly improving real-time visibility across their entire supply chain by integrating data from partners in control towers.
   This is a shift more of Maersk’s strategic clients are adopting, using tools such as Supply Chain Management. For example, one major tech firm recently linked its enterprise resource planning (ERP) system to Maersk's platform for real-time coordination from supplier to delivery hub.
2. Planning together
   Leading tech businesses are focusing on their resilience in the future as well as today. In our research, 85% of the resilience frontrunners collaborate with their ecosystems on forecasting, capacity planning and order management.
   LSPs can support such initiatives, for instance through Maersk’s Supply Chain Resilience Model, which provides supply chain visibility and agility.
3. Streamlining LSP relationships
   Reducing the number of LSPs can strengthen partnerships. “We tend to be exclusive in each country with long term partnerships,” says Federico Marchesi, Chief Supply Chain Officer at Haier Europe. “It’s an area of very close cooperation – the exchange of data is incredibly high.” Schneider Electric, meanwhile, has reduced their LSPs from 1,450 to 16 since 2012. “We can manage those 16 through digital integrations,” Whiting says. “And maintain visibility so that we make the right decisions.”
4. Building trust
   Tech firms recognise the importance of accountability and trust in their relationships with partners. Some move to performance-based contracts, where LSPs are paid premium rates for on-time shipments but are expected to accept reduced rates if goods arrive late. Maersk Delivery Guarantee, for example, includes these terms.
   Others focus on negotiation and continuous improvement. “We want partners where we can discuss together,” says Marchesi. “We want to know how it's done rather than just what is done.”
   Before sharing sensitive data, tech companies also seek reassurance that robust data protection standards are in place.
5. Exploring emerging technologies
   Emerging technologies are becoming mission critical, and data-rich LSPs are well-placed to help: 47% of tech firms say that, within five years, predictive tools will become essential. For example, one Maersk customer in the semiconductor sector was unsure whether to ship early to avoid forecasted rate increases. It used Maersk’s Visibility Studio to get a go/no-go routing recommendation, based on contextual data, that balanced cost and risk.

What to do next to improve collaboration

To strengthen collaboration, tech firms should address four priorities:

• Map and share – work more closely with LSPs and suppliers to build a complete picture of the whole network, including sub-tier suppliers.
• Invest in trust – validate cybersecurity and data protection standards and create transparent, fair contracts.
• Consolidate and deepen – operate with fewer LSPs to build stronger relationships.
• Embed collaboration in tools and technologies – use control towers and AI to support data sharing and decision making.

Tech firms cannot achieve resilience alone. But through closer and smarter collaboration with partners and LSPs they can navigate disruption, reduce risk and protect margins.

Be ready for intelligent supply chain resilience to go all the way! Explore the full Course for Change report and learn more about Maersk Supply Chain Resilience Model, or for more logistics trends and insights, read and download The Logistics Trend Map.

About FT Longitude

FT Longitude is a specialist thought leadership agency, owned by the Financial Times, working with a wide range of the world’s most prestigious B2B brands across Europe, the US and Asia-Pacific. FT Longitude’s 80+ clients are concentrated in the professional services, financial services, and technology sectors, but also stretch into energy, infrastructure, manufacturing and other industries. Headquartered in London, the company was founded in 2011 and was selected as one of Chief Marketer 200, Top Marketing Agencies of 2020, an Inc. 5000 Europe in 2018, an FT 1000 company in 2017, and a 2016 Leap 100 high growth UK company by City A.M. and Mishcon de Reya. It is led by founders Rob Mitchell (CEO), James Watson (COO) and Gareth Lofthouse (Chief Revenue Officer). For more information: visit longitude.ft.com.