Recent years have seen a dramatic increase in supply chain disruptions. According to Q2 2025 CIPS Pulse surveyThe short- and long-term outlook for supply chain risks has reached record levels, with procurement professionals rating their concern about these risks at 4.57 out of 7 for the third quarter and 5.03 out of 7 for the following year, the highest since tracking began. The main factors are uncertainty surrounding new US tariff policies and ongoing trade tensions between major economies.
Supply chains in the consumer goods sector are no exception, facing unprecedented disruption from escalating geopolitical risks, ongoing trade uncertainties and evolving regulatory requirements. To remain competitive and responsive to consumer needs, businesses must quickly adapt their operations to address disruptions in their environment. Leveraging technology and reinventing sourcing are key approaches to succeeding in today’s unpredictable global landscape.
From inventory to cost increases
In early 2025, many consumer goods companies stockpiled to mitigate the impact of initial and anticipated tariffs. Notably, older inventory, including some inventory previously deemed obsolete, has now become an important asset for some businesses, according to Forbesallowing some consumer goods companies to maintain inventory at lower pre-tariff costs.