From Bottlenecks to Breakthroughs: Building Cost-Resilient Supply Chains Amid Global Uncertainty

ARTICLE | August 27, 2025

Authored by Aprio, LLP

At a glance:

• The main takeaway: Modern supply chains are once again facing volatile disruptions, making adaptability and risk management more crucial than ever.
• Impact on your business: This unpredictable pressure creates increased exposure to supplier risk and rising costs, especially as traditional sourcing strategies are challenged by geopolitical shifts and labor shortages.
• Next steps: An expert advisor can help you implement robust risk assessment processes and diversify sourcing strategies.

The traditional supply chain playbook, built on efficiency, lean inventories, and just-in-time delivery, has been upended by a series of profound disruptions. Today’s global supply chains are once again confronted with a set of familiar challenges but layered with new challenges, such as a shifting geopolitical landscape, global trade conflict, and labor shortages. From previous pandemic shutdowns to material shortages, the rules have been rewritten, and adaptability is the key to success.

Understanding the shifting terrain of modern supply chain risk

Supply chain risk is more than just another buzzword. It’s a daily reality in the manufacturing industry that affects every aspect of operations, from cost and sourcing to logistics and delivery. The unpredictability of evolving global dynamics, coupled with new tariff policies, export controls, and persistent supply disruptions, are reshaping the foundation of how and where manufacturers source and distribute goods.

Strategic supply chain risk management is no longer a back-office concern, but a defining pillar for survival and growth. Companies must build adaptive strategies that can anticipate disruption and mitigate risks with agility.

Supplier disruptions and delays: the new normal

Supply chain disruptions have manifested in a variety of forms from extended lead times and global shortages to labor tensions and constrained port operations. Most companies have experienced a variety of supplier problems over the past year, ranging from delays and mismatched specifications to missing documentation and unavailable products, according to Aprio’s 2025 U.S. Manufacturing white paper.

While supplier risk is increasing, formal risk assessment processes are lagging, opening the door to further vulnerabilities. Manufactures must now factor in the cost of goods, transportation, and the risks posed by workforce dynamics at critical junctures in the supply chain.

Cost reduction: time to rethink sourcing

The global reliance on single sourcing, especially on key materials and components from China, have exposed numerous vulnerabilities. As tariffs rise and the price advantages of oversea suppliers shrinks, manufacturers are faced with tough decisions: absorb the costs and accept lower margins or pass the increases along to customers through price hikes and surcharges. For example, if a product that once yielded a 50% margin now sees component costs exceeding 30% of that margin, the company must decide if a 20% margin is sustainable or if prices need to rise.

While global single sourcing was a clear cost-saving method in the past, it’s now met with challenges that extend beyond tariffs. Re-evaluating supplier footprint and considering nearshoring can reduce logistics and lead time, resulting in smoother operations and the potential for lower end-to-end costs, with the cost of sourcing locally or nearshoring now only marginally higher in some cases. This shift reflects a broader strategic pivot, where manufacturers weigh the total cost of ownership and resilience beside simple price efficiency.

Overcoming turmoil in logistics from transportation to labor

The logistics sector is navigating its own storm of challenges, driven by escalating freight rates placing more pressure on supply chains. In addition, labor shortages in trucking and warehousing are driving up operational costs and making it increasingly difficult to secure reliable transportation.

While workforce dynamics in the manufacturing industry have been historically unpredictable, the recent shifts in the labor market have tipped the delicate balance, resulting in fewer available drivers and a new era of elevated costs across the board.

With logistics costs surging, companies find themselves with trucks that are unavailable when they are needed most, resulting in the continued disruption to the flow of goods, delays in delivery, and reduced supply chain resilience.

Strategies for mitigating risks and enhancing supply chain resilience

Given the volatility in the today’s landscape, a one-size-fits-all solution is no longer viable. Manufacturers need to embrace a multi-faceted approach by reimagining supply chains to be both resilient and cost-effective. Achieving this delicate balance requires a combination of thoughtful strategy, data-driven monitoring, and the willingness to challenge long-held assumptions around sourcing and logistics.

Building agility isn’t just about creating a robust supply chain, it’s about embedding flexibility and cost resilience into every decision. By integrating these principles, manufacturers can create supply chains that not only withstand disruption but also adapt and thrive in a rapidly changing environment.

Assessment and Alignment

Companies must identify single-source suppliers, capacity constraints, and high-cost areas within their supply chain and profit and loss statements. This assessment should involve cross-functional alignment among finance, operations, and procurement to ensure that risk mitigation is prioritized according to both impact and feasibility.

Quick Wins and Long-Term Redesign

Once vulnerabilities are identified, manufacturers can seek “quick wins” such as renegotiating freight contracts or shifting inventory. Larger-scale changes, such as redesigning the entire supply chain network, may be necessary in some cases, but these require careful planning and stakeholder buy-in.

Data-Driven Monitoring

Ongoing monitoring is crucial. Developing key performance indicator (KPI) dashboards enables organizations to track savings, service levels, and risk exposure in real time. By making risk more visible and measurable, companies can react more quickly to emerging threats.

The bottom line

Manufacturers are facing a landscape where unpredictability is the only constant. The rules have been redefined, and adaptability is the key for success. Those who cling to outdated models will be left behind. The journey towards a cost-resilient supply chain demands pivoting towards a proactive, data-driven approach: assessing vulnerabilities, realigning supplier networks, investing in logistics solutions, and adopting technology where it adds value.

As risk evolves and new challenges emerge, Aprio’s Operations & Supply Chain Advisory Services team can help you embrace holistic strategies that build agility, resilience, and long-term competitive advantage.

Please connect with your advisor if you have any questions about this article.