Navigating Supply Chain Risks: Strategies for 2025

As global supply chain dynamics continue to evolve, companies are increasingly focused on managing the risks inherent in their operations. In 2025, businesses are adopting various strategies to navigate these challenges, ranging from improving collaboration with suppliers to leveraging advanced technologies like artificial intelligence. This article explores the current state of supply chain risks and the strategies companies are employing to mitigate them.

Current State of Supply Chain Risks

Supply chain risks have become a significant concern for companies worldwide. In 2025, less than 8% of businesses report having complete control over these risks, while 63% have experienced higher-than-expected losses. Reputational risk is a top priority for 67% of organizations, underscoring the importance of maintaining trust with stakeholders. Although pandemic-related risks have decreased to 37%, other concerns like cybersecurity and climate change remain pressing issues.

Cybersecurity risks have risen to 56%, reflecting the growing threat of cyber attacks on supply chains. Meanwhile, climate concerns continue to be a priority for over half of the companies, as extreme weather events and sustainability issues impact logistics systems. Additionally, regulatory changes worry 54% of respondents, highlighting the need for businesses to stay compliant with evolving international regulations.

Strategies for Mitigating Supply Chain Risks

To address these risks, companies are implementing a range of strategies. Collaboration with suppliers is emphasized by 54% of organizations, while 49% focus on improving customer collaboration. Improved strategic planning is a priority for 52% of businesses, and 50% have adopted dual-sourcing strategies to diversify their supply base. Proactive monitoring of suppliers is utilized by 32% of companies to anticipate potential disruptions.

Digital transformation is another key strategy, with 41% of organizations prioritizing it to enhance their supply chain operations. However, 86% of businesses still lack internal risk management tools, a significant increase from 55% in 2023. This gap highlights the need for more robust solutions to manage supply chain risks effectively.

The Role of Technology in Supply Chain Management

Technology plays a crucial role in modern supply chain management. AI-enabled supply chains are becoming increasingly popular, as they offer better decision-making capabilities and enhance overall efficiency. AI reduces the time required for scenario analysis, allowing companies to respond more quickly to potential disruptions. Automation is also providing new opportunities to streamline supply chain processes, improving transparency and auditability.

Computational power aids in sourcing and planning, enabling businesses to optimize their operations. Companies are also automating information gathering to achieve real-time intelligence, which is vital for anticipating risks across Tier 1, 2, and 3 suppliers. These technological advancements are essential for ensuring supply chain resilience in the face of various crises, including pandemics, geopolitical tensions, and climate-related events.

Case Study: Stord's Acquisition of Shipwire

In a strategic move to expand its global fulfillment network, Stord has acquired Shipwire, a company established in 2006 that focuses on warehousing and global shipping. Shipwire serves small and growing e-commerce brands across diverse product verticals, including apparel, electronics, consumer goods, food and beverage, and health and beauty. This acquisition adds 12 locations to Stord's network, strengthening its presence in the EU and UK markets.

Stord's platform connects to over 200 e-commerce systems, focusing on enhancing consumer experiences and logistics technology. The integration of Shipwire's technology division is underway, with new customer onboarding already begun. By connecting teams and developing integration timelines, Stord aims to improve its logistics capabilities and better navigate supply chain challenges.

The acquisition highlights the importance of strategic partnerships and technological integration in managing supply chain risks. By leveraging Shipwire's resources and expertise, Stord can enhance its global fulfillment network and better serve its customer base, addressing supply chain challenges from health and geopolitical issues to sustainability and compliance concerns.

As companies continue to navigate the complexities of global supply chains, adopting effective risk management strategies and leveraging technological advancements will be critical to their success in 2025 and beyond.