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Companies double down on resilience as trade complexities rise

Companies double down on resilience as trade complexities rise

Retail and manufacturing study shows 60% of companies are overhauling their supply chains as tariff uncertainty and market volatility surge.

Supply Chain Xchange Staff
By Supply Chain Xchange StaffFeb 12, 2025
Supply Chain Xchange Staff
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Most retail, wholesale, and manufacturing businesses are focused on fundamentally restructuring their supply chains to stay ahead of economic uncertainty. That’s according to results of the second annual State of Supply Chain report from supply chain solutions platform provider Relex Solutions, released Tuesday.

Relex surveyed nearly 600 professionals from retail, consumer packaged goods (CPG), and wholesale businesses across seven countries and found that 60% said they are overhauling their supply chains due to tariff uncertainty and market volatility.

Respondents said they are grappling with unpredictable consumer demand, escalating trade tensions, and unreliable supplier networks. More than half (52%) said demand volatility is their biggest challenge, forcing them to rethink inventory strategies in real time as shifting spending habits disrupt supply chains. In addition, 47% of businesses pointed to global trade disruptions and rising tariffs as a growing threat—with tariff volatility fueling concerns over higher costs and sourcing bottlenecks—and43% said they struggle with a lack of real-time data and visibility, making it harder to adapt to sudden shifts in demand, labor shortages, and transportation delays.

To counter those challenges, companies said they are making “bold operational shifts,” according to the study. Many are expanding their supplier networks, moving sourcing closer to home, and accelerating automation investments. Among retailers, 62% said they are addressing cost pressures through a combination of efficiency improvements and price adjustments, while 50% said they are actively broadening supplier bases to safeguard against economic and geopolitical instability.

“Supply chains are in a pressure cooker—between tariffs, demand shifts, and unpredictable disruptions, the outdated and traditional way of operating isn’t sustainable,” Dr. Madhav Durbha, Relex Solutions’ group vice president of CPG & Manufacturing, said in a statement announcing the findings. “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 report, Relex State of Supply Chain 2025: Retail and CPG Dynamics, is slated for release in March. The report was conducted by market research firm Researchscape in January 2025.

ArticlePlanFinance & Strategy
manufacturingretailsupply chain resiliencysupply chain management
ArticlePlanFinance & Strategy
manufacturingretailsupply chain resiliencysupply chain management

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