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  February 13th, 2025 | Written by

RELEX study: 60% of Companies Revamp Supply Chains Amid Tariff and Market Turmoil

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The second annual State of Supply Chain Report from RELEX Solutions and Researchscape reveals that businesses are making significant shifts in supply chain strategies to navigate growing trade uncertainties and economic volatility. According to the study, 60% of companies are not only investing in technology but also restructuring supply chains to enhance resilience and adaptability.

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Surveying 579 retail, consumer packaged goods (CPG), and wholesale professionals across seven countries, the report highlights key challenges affecting global supply chains. Demand volatility emerged as the top concern, with 52% of respondents struggling to manage unpredictable consumer behaviors. Additionally, 47% cited global trade disruptions and rising tariffs as major threats, while 43% pointed to inadequate real-time data as a significant barrier to making agile supply chain decisions.

To counteract these disruptions, companies are implementing major operational changes. Many are diversifying their supplier networks, nearshoring production, and accelerating automation investments. Among retailers, 62% are optimizing costs through efficiency measures and price adjustments, while 50% are expanding supplier bases to mitigate economic and geopolitical risks.

“Supply chains are under immense pressure. Between tariffs, shifting demand, and unexpected disruptions, traditional approaches are no longer viable,” said Dr. Madhav Durbha, Group Vice President of CPG & Manufacturing at RELEX Solutions. “Companies that embrace AI, automation, and supplier diversification will emerge stronger, while those that resist change risk being left behind.”

The findings underscore an industry-wide transition away from reactive strategies toward long-term resilience. Businesses are prioritizing structural improvements to better withstand future economic, regulatory, and geopolitical challenges.