Building understanding and resilience – the keys to supply chain success in 2025

If you’re reading this, it’s extremely likely that you’ve experienced some severe supply chain disruption over the last year. And if you haven’t, then there’s every chance that will change over the next 12 months.

That’s because, according to the BCI Supply Chain Resilience Report 2024, almost 80% of organisations have experienced supply chain disruptions, and that number is set to increase sharply as continued geopolitical issues in Europe and the Middle East continue to wreak havoc with fossil fuel and raw material prices. That means businesses are forced to either accept that chaos is the new normal, or that they need to do something about it.

At ACI Group, we’ll always go for the latter. Just because disruptions are widespread doesn’t mean that businesses should take them lying down. There are many measures an organisation can take to minimise the risks it faces – and while the report indicates the number of businesses taking those measures is increasing, there are still many that risk being left behind in a changing world.

Technology-driven tier mapping and insights

You can’t fix a problem if you don’t know where it is. When it comes to the supply chain, this means tier mapping is becoming vital for organisations looking to understand – and ultimately, prevent – disruptions.

One of the most surprising elements of the BCI report was just how few organisations have the technological capability to adequately map out their supply chain tiers in a way that provides useful, actionable insights. Just 12% of respondents said they use technology to develop a credible supply chain map with relationships between each tier, while almost 70%admitted they still primarily rely on Excel spreadsheets to manage supply chain performance. 

Awareness of business continuity and supply chain resilience is growing, but only a minority of businesses are truly prepared to do anything about it. At ACI Group, we make sure our customers are part of that minority with advanced tools like Supply Chain Manager (SCM) which provides AI-powered end-to-end visibility across all tiers of the supply chain, putting all the insights you need at your fingertips. Comparing the visibility provided by SCM to the average spreadsheet-run process is like comparing the James Webb telescope to a budget smartphone camera. No matter how fancy it is, it will never be on the same level as dedicated software like SCM, so you can safely consign those bloated Excel spreadsheets to the recycle bin of history.

Dual sourcing can overcome unexpected challenges

While preventative action can help avoid problems before they occur, sometimes things happen that can’t be predicted.

The report found that half of all supply chain issues occur at tier one suppliers, and 44% are due to third party failures. Other major causes of disruption are cyber-attacks (34%) and extreme weather (27%). It is not always possible to predict when any of these things will occur, even with the best preparation in the world. However, if a business is in a position to react quickly and decisively, it can minimise or eliminate disruption to continuity.

Setting up robust dual-sourcing processes is one method we use to help our customers react quickly to unexpected changes. It enables us to connect affected businesses to either a like-for-like replacement product or a suitable alternative.

Think global, act local

It’s a fact of life that the further away something is, the less direct control you have over it. This is still largely true even in today’s interconnected online world. At times of volatility, when businesses are concerned about losing control of their supply chains, it makes sense that many will shift their focus from global opportunity to local reliability. 

In many cases, this involves implementing a ‘China plus one’ strategy – moving some assets and investments out of China and into more local markets. The reliance on Chinese industry is heavier in some industries – notably chemicals – than others, meaning the challenge this presents varies between businesses. However, it’s easy to overcompensate by thinking too locally, missing global opportunities because you’re too focused on bringing everything closer to home.

Striking the right balance is much easier when you’re working with an experienced distributor like ACI Group. Our technological, data-driven approach and vast international supplier network mean we can optimise your supply chain relocation strategies by identifying new opportunities that you can capitalise on without compromising on the safety, sustainability, or quality of your finished products.

Most of all, we’ll help you avoid what we can and react quickly to whatever we can’t. So, while your competition is caught off guard and rocked by disruptions in every link of their supply chain, you can proceed into 2025 with security and peace of mind.

Get in touch today to learn more about how ACI Group can set you up for success next year.