Companies worldwide are scrambling to overhaul their existing supply chain networks in the face of continued waves of tariff threats by the Trump Administration, a survey from logistics planning provider Relex Solutions shows.
In their effort to cope with unpredictable global trade policies and economic uncertainty, 60% of companies aren’t just investing in technology -- they’re fundamentally restructuring their supply chains, according to the second annual “State of Supply Chain” report from Relex and Researchscape. The January study, based on insights from 579 retail, consumer packaged goods (CPG), and wholesale professionals across seven countries, shows that respondents are grappling with unpredictable consumer demand, escalating trade tensions, and unreliable supplier networks.
Among the results:
- 52% say demand volatility is their biggest challenge, forcing these leaders to rethink inventory strategies in real time as shifting spending habits disrupt supply chains
- 47% point to global trade disruptions and rising tariffs as a growing threat, with tariff volatility fueling concerns over higher costs and sourcing bottlenecks
- 43% 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 these challenges, companies are making foundational operational shifts, such as expanding supplier networks, moving sourcing closer to home, and accelerating automation investments, the report found.
“Supply chains are in a pressure cooker -- between tariffs, demand shifts, and unpredictable disruptions, the outdated and traditional way of operating isn't sustainable,” Madhav Durbha, group vice president of CPG & Manufacturing at Relex, said in a release. “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.”
