Rapid inflation, geopolitical unrest, severe weather, and the COVID-19 pandemic (as well as the resulting global lockdown) brought about some unique supply chain challenges to both ecommerce retailers and third-party logistics (3PL) providers alike in recent years.
Even with a much more resilient supply chain and COVID in the rearview mirror, new supply chain and warehouse management challenges continue to arise in 2025 that companies must tackle to remain successful within the competitive logistics and ecommerce landscapes. For example, countless thought leaders in our industry (and beyond) have been sharing advice on how to prepare supply chain operations for President Donald Trump’s proposed tariffs in advance of his inauguration on January 20.
But where there are challenges, there are also opportunities to adapt and grow. Keep reading to learn some strategies to not only mitigate risk for your business but excel amid new supply chain issues.
The Modern Supply Chain
Before we dig into the top supply chain risks facing the industry today, let’s take a quick look back at the recent history of the supply chain since the pandemic to see how we got here...
2021-2022
In some ways, global supply chains got back on track within a couple of years following a very tumultuous 2020. And yet, several supply chain disruptions carried over into 2021—and beyond—and caused even more difficulty for 3PL providers and ecommerce retailers big and small.
The most common supply chain challenges in 2021 and 2022 were port congestion, lack of labor mobility, manufacturing delays, and extreme weather events (including hurricanes, tornadoes, and wildfires). Numerous outliers—like new COVID variants, factory shutdowns, and the now infamous situation with the trapped Ever Given—also created headaches for the industry.
Despite navigating many natural phenomena and external factors, many ecommerce brands (including those working with Extensiv, like Tushy) found creative ways to keep their revenue flowing and customers satisfied. Some brands shifted to selling on backorder while others opted to work with domestic providers rather than foreign suppliers.
Although these changes didn’t negate the issues within the supply chain, they did give businesses more flexibility, leverage, and options for risk mitigation. Companies that survived the volatility likely did so by getting lean and focusing on their working capital while becoming more efficient across their entire organizations.
2023-2024
While supply chain disruptions largely subsided at a macro level by 2023, new interruptions continued to cause unexpected delays. Geopolitical issues in Ukraine and the Middle East caused ships to avoid the Suez Canal and instead travel around the Horn of Africa, drastically impacting international freight and delivery times. Extremely high temperatures (especially in Southeast Asia) and intense hurricane seasons the past couple of years have also complicated global supply chain operations.
Though these events have often happened far enough away not directly to impact American consumers, they have affected globally distributed supply chain networks that source raw materials and deliver finished goods globally. Companies continue to address these issues head-on by building strong partnerships with their logistics providers, looking for nearshore and domestic suppliers, and making on-demand arrangements that allow for greater margins and make air freight more affordable.
Finally, with the rising costs of resources, unfinished materials, and energy due to rampant inflation, many companies turned their focus inward. Both brands and 3PLs looked for ways to optimize every part of their businesses to boost efficiency, reduce costs, and improve the value they provide their customers.
Supply Chain Challenges in 2025
As 2025 gets underway, supply chain experts are anticipating several new and unforeseen challenges to predictable transit times, productivity, and profitability that could impact industries globally.
Below are some of the biggest supply chain challenges we’re predicting in 2025:
Global Economic Uncertainty
As we step into 2025, global economic uncertainty looms larger than ever, presenting a multifaceted challenge for supply chains worldwide. This uncertainty stems from a variety of sources including fluctuating oil prices, unpredictable inflation rates, and shifting trade policies, all of which can significantly affect cost structures and operational stability. Advanced technologies like financial forecasting tools and sophisticated supply chain predictive analytics software can help you navigate these uncertainties and mitigate risks. Proactive financial planning and strategic global partnerships are key to adapting to these economic fluctuations while maintaining supply chain resilience.
Shifting Geopolitical Relations
Geopolitical shifts are poised to significantly influence global supply chains, particularly with Donald Trump's return to office and his proposed tariffs in 2025. Companies must stay informed on foreign affairs and adaptable, preparing for potential fluctuations in trade policies that could affect import and export activities. Building flexible supply chain strategies and maintaining strong relationships with global partners can help mitigate risks associated with these political changes. It's crucial for you to remain neutral and focused on strategic adjustments to ensure continuity and resilience in your operations.
Regulatory Compliance
Keeping up with the complex web of new and existing regulations across different markets is a daunting task for supply chain managers. Automated systems that help track and manage compliance data can significantly ease this burden. Moreover, staying proactive about regulatory changes and integrating them into business operations are crucial for smooth operations. Partnering with legal and compliance experts can provide the insights needed to navigate these waters without running afoul of the law.
Sustainability Urgency
The drive towards sustainability is reshaping supply chain strategies, pushing companies to be more transparent about their environmental impact to and to adopt more sustainable logistics practices to meet broader ESG (Environmental, Social, and Governance) goals. These sustainability initiatives—such as optimizing transportation routes to reduce fuel consumption as well as focusing on renewable energy sources and optimizing energy use—not only help businesses comply with increasing regulatory demands but also meet the rising expectations of consumers and investors who prioritize ESG metrics.
Changing Consumer Demands
Today's consumers expect more than just fast service; they demand transparency, customization, and sustainability. To keep pace, supply chains are adopting technologies that offer real-time tracking and personalized service options. Advanced analytics play a crucial role in understanding and anticipating consumer behaviors, allowing businesses to manage inventory more effectively and reduce waste. By integrating responsive logistics solutions, companies can not only satisfy current consumer demands but also adapt to future innovations and expectations.
Labor Shortages
The ongoing labor shortages—including truck drivers and warehouse workers—are prompting companies to rethink their workforce strategies. Automation and artificial intelligence (AI) are becoming increasingly important, filling in gaps and enhancing productivity. However, technology alone isn't enough. Retaining a skilled human workforce also requires improving working conditions and offering attractive compensation packages. A focus on workforce development and engagement can help ensure a reliable, skilled team ready to meet the challenges of tomorrow.
Cybersecurity
As supply chain digitization increasingly becomes the norm, the risks of cyber threats grow. A single breach can disrupt operations and damage a company's reputation. To safeguard against these risks, companies are investing in cutting-edge cybersecurity measures to protect the digital supply chain. Regular audits and employee training on security best practices are also vital. Collaborating with IT security experts to continuously update and fortify security measures ensures that supply chains are protected against evolving cyber threats.
Strengthen Your Supply Chain Management with Extensiv
Amid an ever-evolving global supply chain with new challenges emerging every year, both ecommerce brands and 3PLs are still—impressively—able to build resilience against future shocks and repair fault lines via supply chain management transformation.
The pandemic, now a distant five years ago, amplified the need for greater supply chain optimization and faster decision-making that persists to today. The solution? Technology.
What this means is, it will be increasingly important for today’s supply chain leaders to adopt a holistic perspective backed by cutting edge technology as soon as possible to stay ahead of the curve. This is where Extensiv's expertise comes into play.
But software is only part of our ethos. Extensiv’s unique focus in helping ecommerce brands and 3PL warehouses work better together and build lasting partnerships is about more than order fulfillment; it’s about nurturing a more resilient supply chain your business can thrive.
Interested in learning more about how Extensiv can upgrade your supply chain and fulfillment technology capabilities? Request a demo today!
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