Gallagher's global survey highlights how 1,200 business leaders are managing vulnerabilities and building stronger supply chains.
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In today's interconnected world, global supply chains pose critical business risks, impacting organisations across a wide range of industries. To understand how organisations are addressing these challenges, Gallagher conducted a global survey of 1,200 business leaders across various industries. The results reveal how organisations are adapting to a world of uncertainty and change, and how they are building resilient supply chains to manage disruptions with greater confidence.

Key insights

  • 86% of organisations reported supply chain losses over the past year, with the construction sector being the hardest hit
  • Rising material costs, geopolitical changes and tariffs and trade conflicts are identified as the three biggest challenges
  • To address trade and tariff uncertainty, nine out of ten organisations say they are stockpiling goods or considering this as an option, despite the risks associated with concentrating large quantities of goods in a single location
  • Nearly four out of five businesses are concerned about supply chain disruptions, while the majority of losses in the past year were either uninsured or underinsured

Top three risk factors shaping today's supply chains

The study identifies three main risk factors affecting supply chains globally:

  • Rising material costs represent the most widespread challenge. Almost half identified this as their biggest concern, but in the energy and construction sectors, the figure is even higher — 68% and 65% respectively. The increased cost pressures are expected to ease however, as inflation and interest rates continue to stabilise.
  • Geopolitical risks have become a constant factor, reshaping trade routes and supplier choices. Nearly half of businesses report that international conflicts and security concerns are affecting their supply chains. In response, many have begun to diversify their suppliers and improve their inventory management.
  • Tariffs and trade conflicts create further uncertainty. Many businesses are stockpiling goods and components in advance to avoid future cost increases, while others have started to move production either closer to the domestic market or to countries with stable trade relationships.

How businesses are building resilient supply chains

Despite the many risks, the survey shows that businesses are not only reacting to disruptions but also proactively developing strategies to strengthen their supply chains. Here are some of the most effective strategies that emerged from the survey:

  • Diversification of suppliers and trade routes: Businesses are investing in broadening their supplier networks and reducing reliance on individual players. By diversifying their sources and trade routes, businesses can reduce vulnerability to disruptions and create more flexible supply chains.
  • Smarter inventory management: Many organisations have increased their stock levels to address uncertain trading conditions. While this reduces the risk of bottlenecks, concentrating larger quantities of goods creates other risks, such as in the event of fire, natural disasters and theft.
  • Real-time, technology-driven monitoring: Half of the surveyed organisations use platforms to monitor their supply chain in real-time, enabling early warnings of potential disruptions.
  • Improved control of subcontractors: Many businesses have started to focus on gaining better visibility into their supply chains. This includes mapping subcontractors and identifying potential vulnerabilities.

Insurance solutions and the need for greater transparency

One of the most worrying findings from the survey is that only a third of businesses had full insurance for their recent supply chain losses. Many organisations find that there are limitations in the insurance solutions offered for specific risks in the supply chain.

To close this protection gap, organisations are calling for improved data, analytics and flexible insurance products. By improving supply chain visibility and developing tailored insurance solutions, businesses can better manage risk and strengthen their resilience.

Risk management remains critical

Gallagher's research shows that the supply chain continues to be a critical challenge for businesses around the world. Nearly 90% of the businesses reported losses in the past year, emphasising the importance of developing resilient strategies. At the same time, the results show that businesses investing in diversification, technological solutions and improved risk management are better aligned to navigate in an uncertain world. By combining these strategies with better insurance solutions and increased visibility into supply chains, businesses can not only reduce their risks but also create a solid foundation for long-term growth and success.