Global Trade Disruption Impacting Supply Chains

Global Trade Disruption Impacting Supply Chains

Global Trade Disruption Impacting Supply Chains

In recent years, the world has witnessed an unprecedented array of disruptions that have put global supply chains to the test. The COVID-19 pandemic, geopolitical tensions, and the ever-pressing threat of climate change have underscored the critical need for more resilient supply chains. These disruptions have exposed vulnerabilities and underscored the critical need for resilience.

Today, additional challenges are compounding these issues, making the situation even more pressing. Rising shipping costs are straining budgets and squeezing margins, as the cost of transporting goods across the globe continues to soar. At the same time, energy bills are skyrocketing, driven by factors such as fluctuating oil prices and the transition to renewable energy sources. These financial pressures are adding new layers of complexity to supply chain management, further emphasizing the need for strategic planning and adaptability.

As these challenges continue to evolve, leaders across industries are increasingly focusing on strategies such as diversification of suppliers, nearshoring, and building in redundancy to mitigate risks. By addressing both the immediate and long-term threats to supply chain stability, businesses can better navigate the turbulent global landscape and ensure a more resilient future.

Why Does Supply Chain Resilience Matter?

A resilient supply chain is one that can absorb shocks, adapt to changes, and quickly recover from disruptions. This ability to navigate challenges ensures businesses can continue to meet customer demands and maintain a competitive edge.

ET2C International: Your Trusted Partner in Strategic Sourcing and Global Supply Chain

ET2C are a UK owned Global Sourcing Company with over 22 year’s experience serving our clients . Our 200 colleagues are based in 7 offices in developed and emerging sourcing market with the daily mission to Make Sourcing Simple .

Whether you are a company with long experience in sourcing from China and want to explore new markets, to de-risk your position or a start up looking to make their first move into off shore supply chain we can help.

We work with clients to deliver:

  • Release incremental valuefrom your supply chain
  • Building incremental operating margin 
  • Be your team on the groundin sourcing markets
  • Product and Factory audit(digital video reporting)
  • Ethical and Environmental audits

If you would like to learn more about these or any other aspect of Global Sourcing please drop us a line

The Pillars of a Resilient Supply Chain

Building a rclear esponce to potential  risk in your supply chain  is a business critical issue.

1. Diversification :

The COVID-19 pandemic was perhaps the most significant disruption to global supply chains in recent history. It revealed the vulnerabilities of a system heavily reliant on just-in-time production and a limited number of suppliers. Lockdowns, travel restrictions, and the sudden surge in demand for certain products led to significant delays and shortages.

To address these issues, businesses are now prioritizing the diversification of their supplier base. By spreading their sourcing across multiple regions and suppliers, companies can reduce the risk of disruption from localized events. This approach not only enhances supply chain resilience but also fosters competition among suppliers, potentially driving down costs and improving quality.

2. Nearshoring :

 Geopolitical tensions, including trade wars, tariffs, and regional conflicts, pose another significant risk to supply chains. These tensions can lead to sudden changes in trade policies, border closures, and increased regulatory scrutiny, all of which can disrupt the flow of goods and materials. In response, many companies are adopting nearshoring strategies—moving production closer to their primary markets. Nearshoring can reduce transportation costs, lead times, and exposure to geopolitical risks. It also allows companies to better align with local regulations and consumer preferences.

3. Building Redundancy :

Climate change presents a unique and increasingly urgent challenge for supply chain resilience. Extreme weather events, such as hurricanes, floods, and wildfires, can cause significant disruptions to transportation networks and production facilities. Additionally, long-term changes in climate patterns can affect the availability of raw materials and the stability of infrastructure.

To mitigate these risks, companies are investing in building redundancy into their supply chains. This involves creating buffer stocks, establishing alternative transportation routes, and developing contingency plans for various scenarios. Moreover, many businesses are adopting more sustainable practices to minimize their environmental impact and contribute to the fight against climate change.

Building a Culture of Resilience in your organisation and Supply Chain Partners


Beyond these core strategies, fostering a culture of resilience within your organization is crucial. This involves:

  • Investing in risk management tools and processes:Early identification and mitigation of potential threats is critical.
  • Building a strong communication network:Open communication throughout the supply chain allows for quick identification and response to disruptions.
  • Encouraging collaboration:Working closely with suppliers and partners allows for a coordinated response to challenges.


The challenges of the past few years have highlighted the need for more resilient supply chains. By focusing on diversification of suppliers, nearshoring strategies, and building in redundancy, leaders can better manage risks and ensure their supply chains are prepared for whatever the future holds. As the global landscape continues to evolve, resilience and risk management will remain crucial components of successful supply chain management.

If you’re interested in exploring how we can help achieve you a resilient supply chain, please contact us at

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