Companies that invested in supply chain modernization were more likely to recover stock value quickly following disruptions, according to Cleo’s 2025 Supply Chain Earnings Impact Report.
The report, based on an analysis of more than 1,000 earnings calls from publicly traded mid-market companies over five years, revealed a link between supply chain agility and enterprise value.
In 2022, supply chain discussions peaked, appearing in 27% of earnings calls—up sharply from just 2% in 2019.
That figure dropped to 10% in 2024, indicating a slow recovery from pandemic-era volatility. On average, it took companies four years to fully recover from pandemic-related supply chain disruptions.
The report found companies prioritizing real-time visibility, technology integration and operational resilience saw higher investor confidence.
Among companies with stock price increases, 51% cited improved supplier onboarding as a key success factor.
On the other hand, 46% of underperformers blamed supply chain issues, and 37% specifically identified delays as a driver of missed targets.
Stock price recovery timelines varied widely, averaging 176 days. One company took 1,086 days to regain its pre-disruption stock value.
Order backlog management was also a major differentiator: 42% of companies with stock declines cited backlogs as a drag on earnings, while 50% of supply chain “winners” used backlogs as a strategic growth lever.
The report also found that 29% of companies experiencing stock declines cited workforce challenges as a major factor, indicating a need for strategic hiring that accounts for those digital transformation goals.
Cleo CEO Mahesh Rajasekharan said as supply chains become more unpredictable, companies must look to rapidly diversify their sourcing strategies to reduce risk and improve product stability.
“What was once a reliable source for materials may not be able to keep up with availability during shortages, global trade shifts, and ongoing disruptions,” he said. “Companies that don’t diversify may fall behind in a volatile market.”
For example, if a grocery store were to depend on a single egg supplier, an outbreak like avian flu can stop supply overnight. With no backup, shelves go empty and costs surge.
“But with multiple sources in place, the store can pivot quickly,” Rajasekharan said. “It maintains availability, avoids price shocks, and protects customer trust. Diversification isn’t just smart — it’s essential for resilience.”
He added technology’s role is critical in helping to expedite and improve supplier onboarding.
“Integration technology optimizes this process, providing deeper insights, agility, and end-to-end visibility,” he said.
This level of transparency gives technical and business users the confidence and knowledge needed to rapidly onboard trading partners, allowing them to respond faster to market demands, capitalize on new business opportunities, and increase their competitive edge.
In Cleo’s findings, the companies winning in this area are those that view backlogs as future revenue streams, rather than bottlenecks.
One company noted a $850 million backlog driven by demand for electric vehicles, showcasing the value of aligning backlogs, rather than neglecting them.
Rajasekharan said instead of focusing on the downside, IT leaders should look at well-managed, high margin backlogs as signals of operational strength, ensuring their long-term revenue pipelines.
“These are actionable lessons for leaders,” he said. “IT leaders should prioritize high-margin orders, align their backlogs with demand forecasts, and optimize pricing strategies to maximize future revenue.”
This approach positions companies to not only prepare for future demand, but also to capitalize on emerging market trends.
“When companies utilize data that’s connected through strategic orchestration, they will continue to lead,” Rajasekharan said. “That’s because supply chain success isn’t only about managing risks, it’s about building agility and strategically positioning operations for long-term growth.”
