Supply Chain Resilience
What is Supply Chain Resilience
Increasing supply chain resilience has consistently been a top priority for businesses, with ASCM’s annual trend report ranking it as a top five concern among CEO's and supply chain professionals. But what is Supply Chain Resilience?
Supply chain resiliency refers to a company’s ability to withstand and recover from disruptions across its supply network. These disruptions may arise from internal or external factors, including unexpected competition, shifting market trends, or rapid changes in customer behavior.
Companies who create resilient and agile supply chains do more than just resist and recover. They leverage modern processes and technologies to forecast, anticipate, and respond quickly to both risks and opportunities.
So how can a company go about building a more resilient supply chain?
Sources of Supply Chain Risk
To start, a company should map their risk exposure. While most executives agree that supply chain resiliency is a top priority, the sources of risk and the strategies to manage them vary greatly. Supply chains face both internal and external threats, from supplier bankruptcies and quality issues to transportation disruptions, extreme weather, and economic fluctuations. The list of potential risks is long and constantly evolving.
Supplier Reliability & Peformance
Declining quality control, OTIF, and NPD performance
Transportation Disruptions
Rising costs, port congestion, and strikes
Geopolitical Tensions
Nationalistic trade policies and conflict
Extreme Weather
Hurricanes, floods, and droughts
Macro Economic Fluctuations
Recession, inflation, and interest rate risk
Brands Risk & Consumer Behavior
Rapidly changing consumer tastes and brand credibility
Compliance & Regulatory Requirements
Rising reporting and monitoring costs
HR and Labor Availability
Difficulty in finding, retaining, and developing talent
CEO's Cite Tariffs as Top Risk
Though there are many supply chain risks which companies need to manage, recent surveys have revealed that trade policy and tariff risk are top concerns for CEO's and supply chain practitioners. With supply chains often involving up to eight firms, companies are not only focused on a finished good's country of origin but also the impact of tariffs on critical components and raw material supply chains.
Amid these growing risks, CEO's worldwide recently ranked intensified trade wars as the top geopolitical threat to their businesses. In response, 71% plan to restructure their supply chains over the next 3-5 years—up from 54% in the 2024 survey.
CEO's worldwide named US-EU-China tensions among the high-impact issues facing their business in 2025.
71% of surveyed CEO's plan to alter their supply chains over the next 3-5 years—an increase from 54% in the 2024 survey.
-Survey reflects the views of more than 1,700 executives, including over 500 CEOs
Betting on Quick Tariff Relief? The Odds Aren't in Your Favor
Looking ahead, it’s often useful to look back not for exact answers, as history rarely repeats itself, but to identify key trends.
During President Trump’s first term, we saw multiple tariff hikes, an expanding scope of affected industries, and years of escalation before a trade agreement was reached.
While there’s no certainty that his second term will follow the same path, the latest tariff threats on Canada, Mexico, and China suggest that tensions could persist for months, if not years, before any resolution.
Companies betting on a swift and lasting end to trade disputes do so at their own risk.
How to Manage Tariff Exposure
So what is a company to do when they feel their tariff risk exposure is significant and needs to be proactively managed?
Regardless of industry or company size, there are several proven strategies—each with its own benefits and challenges. Click below to explore these strategies in detail.
Frequently asked questions
What is Supply Chain Management as a Services (SCMaaS)?
SCMaaS is an asset-light model offering scalable, tailored supply chain staffing and advisory services across multiple foreign markets, ready for immediate implementation and requiring no capital expenditure.
How does SCMaaS help my business?
SCMaaS offers tailored benefits based on client size, growth stage, and strategic goals. Common advantages include: enhancing supply chain visibility with near real-time data, driving supplier improvement initiatives, accelerating new product development, opening new foreign markets, implementing Standard Operating Procedures to support scaling, and alleviating domestic bandwidth constraints.
Can SCMaaS integrate into our existing business processes?
Yes, our SCMaaS model seamlessly integrates with your current workflows and SOPs, ensuring minimal ramp-up time and a smooth transition for your supply chain team. Additionally, SCMaaS staffing resources can complement your existing foreign team, helping you expand capabilities without the need for direct hires.
What is the cost associated with SCMaaS?
SCMaaS costs are based on the number of personnel a client uses, the number of markets covered, and the complexity of their supply chain operations. While costs vary depending on the client, our clients typically experience SCMaaS costs that are 20-30% lower than traditional asset-heavy models, such as operating a foreign sourcing office.
Moreover, the enhanced supply chain performance associated with our SCMaaS model often results in significantly greater savings beyond the initial cost reduction.
How can I start with SCMaaS?
Your supply chain is the lifeblood of your business, and we take that responsibility seriously. To learn more about SCMaaS and how to get started, contact us to schedule a consultation where we’ll get a better understanding of your supply chain goals and needs.