Here’s how supply chains are responding to global uncertainty
An increasingly unpredictable global trade environment is forcing supply chain executives to make changes in how they operate.
Six in 10 surveyed supply chain executives are going beyond investing in technology in response to global trade policies and economic fluctuation and fundamentally restructuring their supply chains.
The second annual State of Supply Chain report from Relex Solutions and Researchscape also finds that more than half (52%) of 579 surveyed retail, CPG and wholesale executives across seven countries say demand volatility is their biggest challenge, forcing them to rethink inventory strategies in real time.
In addition, 47% of respondents say global trade disruptions and rising tariffs are a growing threat, with tariff volatility fueling concerns over higher costs and sourcing bottlenecks.
More than four-in-10 (43%) respondents report struggling with a lack of real-time data and visibility, making it harder to adapt to sudden shifts in demand, labor shortages, and transportation delays.
[READ MORE: Import cargo remains elevated amid concerns of increases in tariffs]
In response to these challenges, close to two-thirds (62%) of retail respondents are addressing cost pressures through a combination of efficiency improvements and price adjustments. Half of retail respondents are actively broadening supplier bases to safeguard against economic and geopolitical instability.
According to Relex analysis, these findings reflect a larger industry shift, as companies recognize that short-term supply chain fixes are no longer suitable. Instead, Relex says supply chain organizations are moving beyond crisis-driven decision-making and taking proactive steps to fortify their supply chains against economic, regulatory, and geopolitical challenges.
"Supply chains are in a pressure cooker - between tariffs, demand shifts, and unpredictable disruptions, the outdated and traditional way of operating isn't sustainable," said Dr. Madhav Durbha, group VP of CPG & manufacturing at Relex Solutions. "Companies that lean into AI, automation and supplier diversification will not only weather this volatility but emerge stronger. The ones that don’t risk falling behind."
The full "Relex State of Supply Chain 2024: Retail and CPG Dynamics" report, set for release in March 2025, was conducted by Researchscape, surveying 579 retail, CPG, and wholesale leaders globally in January 2025.
