Companies Tackle Global Supply Chain Complexities

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As the global supply chain becomes increasingly complex—and with an assortment of rising tariffs and other trade barriers being discussed right now—companies are always looking for new ways to both overcome current issues and get out in front of new roadblocks. Geopolitical instability, evolving regulations and ongoing supply disruptions are all putting unprecedented pressures on global supply chains.  

Maintaining a competitive edge and ensuring continued growth in this uncertain environment requires a fundamental shift in strategy. To determine how companies are approaching their most pressing supply chain challenges and help others tackle their own issues, Descartes recently commissioned a Supply Chain Intelligence Benchmark Survey of nearly 1,000 global supply chain leaders. 
 
“Keeping supply chains agile and ready for rapid change is now more important than ever before,” the company says in its report. “The imposition of higher tariffs in one country, labor strife in another or widening regional geopolitical instability are examples of why organizations engaged in international trade need to have contingency plans to be able to quickly find suppliers and customers in alternative markets, spot supply and demand shifts, and optimize trade lanes.”

Technology Helps Quell the Complexity

Companies are increasingly turning to technology and advanced options like artificial intelligence (AI) to help address supply chain and global trade complexities. Here are some of the key findings from the Descartes report: 

• Nearly 40% of respondents plan to invest in technology and 19% aim to invest in internal resources to ensure continued growth. Fast-growing companies emphasize technology investments because they place great importance in first mover advantage when responding to market challenges or competitive pressures. “Speed is key when it comes to the complex research required for accurately strategizing alternative international trade plans,” Descartes says. “This is where technology, and artificial intelligence in particular, can help with number crunching, automation and visibility.”
  
  
• 74% of the supply chain and logistics leaders surveyed view technology as fundamental or highly important to their organization’s growth strategy in the face of rising global trade challenges, such as tariffs and trade barriers, supply chain disruptions and geopolitical instability. This number jumps to 88% for companies expecting greater than 15% growth over the next two years.
  
  
• Among supply chain intelligence decision-makers, 27% rated enhanced supply chain flexibility/resilience as the main business return used to measure the success of technology investments. Revenue growth came in a close second (25%). 
  
  
• Most supply chain leaders view global trade intelligence as the “main capability” they need today to deliver the greatest business value in the next two years, Descartes reports. Just over a third, or 36%, said that this was crucial to rapidly identify new suppliers and customers to overcome setbacks in existing markets. 

Global Trade Complexities aren’t Going Away 

Descartes’ survey findings paint a picture of an international trade environment that’s become much more complex with the advent of new challenges over and above business operations issues. The key issues include rising tariffs and trade barriers; growing geopolitical instability; increasing concerns about new supply chain disruptions; and emerging compliance issues. In light of that, the company says, organizations must be able to effectively tackle these challenges head-on to ensure continued growth.

“For companies in diverse industries, global trade has become much more complex, with many new challenges to traditional business operations,” Descartes’ Jackson Wood said in a press release. “As businesses contend with tariffs and trade barriers, geopolitical instability, supply chain disruptions and compliance requirements, technology tools can help them build greater agility and resilience into their supply chains to compete more effectively.”