Our State of Supply Chain 2025 report reveals how global supply chains are navigating surging tariffs and trade uncertainty – alongside new regulations and sustainability pressures – to stay resilient.
Tariffs are shifting fast. See how top supply chains are responding now — from risk mitigation and compliance to ESG and tech strategies that drive resilience and results.
Tariff Volatility Triggers Sourcing Shifts
Companies are rapidly diversifying sourcing to blunt the impact of tariffs and geopolitical instability.
Sustainability Becomes Non-Negotiable
Regulations like EPR, Scope 3, and human rights laws are turning sustainability from a nice-to-have into a must-have.
Digital Traceability Goes Mainstream
1 in 3 companies now use digital passports or blockchain to verify sourcing and ESG claims.
AI Delivers Real ROI
Businesses are scaling AI for forecasting, compliance, and risk modeling to preempt disruption.
Tech-Driven Forced Labor Compliance
Laws like UFLPA are accelerating investment in audits, DNA testing, and labor traceability tools.
Mid-Tier Brands Get Squeezed
Luxury and value brands thrive; mid-tier players must innovate as consumers demand sustainability without premium pricing.
Collaborative Audits to Cut Fatigue
Brands are teaming up to share audits, standards, and grievance systems—boosting efficiency and impact.
Key Insights From the Report
Tariff Volatility Drives Sourcing Strategy
Brands and retailers are rethinking supplier locations due to tariff changes.
Sustainability Is the New Baseline
Consumers expect it—even without premium pricing. Cost-effective green innovation is now essential.
Digital Maturity Gaps Persist
AI and automation leaders are pulling ahead, while most face cultural and ROI hurdles.
Compliance Becomes a Brand Asset
Evolving laws on labor, ESG, and EPR are elevating compliance from obligation to opportunity.
Traceability Builds Trust
Digital passports, blockchain, and verified data are now key to risk mitigation and transparency.
Collaboration Strengthens Resilience
Shared audits and supplier partnerships reduce burden and drive scalable impact.
“Mandatory human rights laws mean self-audits aren’t enough to protect a business. If a brand gets flagged for forced labor, the entire shipment might be blocked at the port. That’s existential.”
Avedis Seferian
CEO of Worldwide Responsible Accredited Production (WRAP)
“Business as usual is not an option. Any business that carries on in a linear way just won’t be here in the next five years. The ones investing in responsible materials and future-proofing their supply chains are the ones that will survive.”
Lydia Brearley
Sustainability & ESG Consultant, Enkel
“We cut our China sourcing from 50 to 25 percent in one year. If tariffs on Vietnam happen tomorrow, all that work could be undone.”
David Bobbitt
President of Sourcing, Komar
“Digital Product Passports are the Internet of Things for products—it’s like when e-commerce first emerged. You can treat it as just another compliance box, or you can see it as the next big disruption in how customers engage with your brand and products.”
Natasha Franck
CEO, EON
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