Insights / White Papers

Building Supply Chain Resilience
in Volatile Times

By: Mike Hatfield
Date: April 10, 2025

If you were expecting global supply chains to stabilize post-COVID-19, think again.

The pandemic exposed the fragile and interconnected nature of supply chains. Disruptions in one region can ripple across the globe, as seen with incidents like attacks on commercial ships near the Red Sea, cargo restrictions through the Panama Canal, dockworker strikes at ports, shifting global trade policies, and tariffs.

Given the unpredictable nature of global supply chain disruptions, businesses must prioritize building resilient supply chains capable of adapting swiftly to market changes. Flexibility is crucial for maintaining supply continuity, operational efficiency, and exceptional customer satisfaction in these uncertain times.

Companies can strengthen their supply chains by establishing long-term partnerships, maintaining proactive communication, leveraging visibility technologies, managing risks, and adopting diverse logistics strategies.

Foster Long-Term Partnerships With Carriers

One critical aspect of a resilient supply chain is nurturing healthy, long-term relationships with carriers.

When the market becomes unstable, it's tempting to blame the carriers. However, taking frustrations out on them won't benefit your supply chain in the long run. Instead, prioritize cultivating strong, cooperative relationships with your carriers to navigate market volatility more effectively. Communicate often with your carriers to discover how their goals and plans can fit your upcoming business needs.

Long-term carrier partnerships provide insight into their strengths and weaknesses, such as their proficiency in specific trade lanes or destination ports.

Communicate Regularly to Gain and Share Market Insights

Educate yourself about market trends and developments by engaging with your carriers. Regularly communicate with them to get insights and recommendations. Talk with multiple carriers to gather diverse feedback. Consider their service strengths, network capacities, and operations at specific ports. This information helps you make informed decisions about the best routes and services for your supply chain.

Share market conditions and insights with your customers. Educate them on potential problems and offer them various solutions with cost implications. Proactively communicating market conditions, the reasons behind delays, potential impacts, and solution options helps manage expectations and maintain customer satisfaction.

Use Technology for Real-Time Visibility

One of the most significant contributions of technology to supply chain resilience is real-time visibility. Companies can now track the location and status of their containers throughout the entire journey, from ocean transit to inland transportation. Advanced tracking tools provide detailed information about container movements, enabling companies to manage delays, optimize routes, and improve overall efficiency.

In my experience, visibility and data management are key. Knowing exactly where your container is and how it's being processed is vital. While many tools and platforms offer these capabilities, finding the right provider is challenging. When evaluating a platform, focus on the essential functions your business needs to address. It's easy to be dazzled by a tool's extra features, but if it doesn’t support your core operations, you risk wasting time, money, and effort. Not all platforms deliver on their promises — some look good on the surface but lack logistical expertise, while others are logistics-savvy but not user-friendly.

Understand Risks, Learn from Experience

Global supply chains grapple with numerous risks, primarily driven by market volatility and uncertainty. During the pandemic, carriers shifted vessel capacity on different trade lanes and blanked sailings to meet increased demand. Empty containers got stuck in the wrong places, creating a capacity crunch.

Another significant risk is the reactive nature of importers. When unexpected events occur, such as new tariffs or potential strikes, importers often pull forward their orders to ensure sufficient stock for seasonal buying patterns (e.g., back-to-school supplies, end-of-year holiday gifts). However, this panic buying artificially inflates demand, drives up costs, and destabilizes the market.

One of the quickest ways to identify supply chain vulnerabilities is through real-world experience. When something goes wrong, you're forced to pivot and find solutions. This trial-by-fire approach teaches invaluable lessons about potential weak points in your supply chain.

In summary, building a resilient global supply chain requires a multifaceted approach. Companies must foster strong, long-term relationships with carriers, communicate up and down their value chain, leverage track-and-trace technologies, manage risks, and adopt flexible logistics pathways. These strategies enable organizations to navigate disruptions effectively and maintain a competitive edge in volatile times.

Mike Hatfield is the Director, Global Logistics at Berlin Packaging, where he oversees a complex, multi-regional supply chain and develops procurement strategies across various transportation modes.