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How Today’s Global Disruptions are Reshaping Supply Chains

How Today’s Global Disruptions are Reshaping Supply Chains

With Mike Short, President, Global Freight Forwarding, CH Robinson; Matt Castle, VP, Products for Global Forwarding, CH Robinson; and Madhav Thapar, VP, South Asia, Middle East and Africa, CH Robinson

Feb 2025|IMA Research
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Executive Summary

  • Geopolitical instability, labour strikes and infrastructure issues are increasingly affecting global supply chains, necessitating adaptability and strategic planning.

  • Predictive analytics, real-time shipping data and AI-powered platforms enable companies to anticipate disruptions and improve decision-making.

  • Companies are diversifying suppliers, shifting from just-in-time models to stockpiling and using multimodal transport solutions to manage economic instability.

  • India has the potential to benefit from the China+1 strategy, but improvements in infrastructure and regulatory efficiency are necessary to fully capitalise on this.

  • Green shipping and sustainability initiatives are gaining traction, with companies integrating eco-friendly practices into supply chains to balance costs and environmental responsibility.

  • Companies must focus on both, predictive measures and nimble responses to geopolitical risks, fostering strong relationships with carriers and utilising advanced technologies for greater supply chain visibility and flexibility.

Businesses today face unprecedented disruptions, which are reshaping supply chains and business strategies. It is becoming increasingly crucial to build resilient supply chains, fostering innovation through collaboration and adopting long-term strategies to ensure sustainable growth.  At a recent India CEO Forum session in Mumbai, three top executives from CH Robinson, a major player in the global logistics space, explored the evolving supply chain landscape, focusing on key challenges such as geopolitical shifts, economic fluctuations and the growing demand for transparency and resilience. The speakers also examined strategies for leveraging digitalisation and other emerging technologies to optimise supply chains, with sustainability becoming an increasingly critical expectation.

Global supply chains face persistent disruptions, from geopolitical instability to labour strikes and canal blockages, making adaptability more critical than ever. Businesses must anticipate risks and develop flexible strategies, including alternative transport routes, multimodal logistics and diversified supplier networks. Predictive analytics and real-time shipping data play a crucial role in forecasting disruptions, with some companies overlaying weather patterns onto shipping data to anticipate delays. However, data alone is not enough, and being able to respond with agility to crisis is now more critical than ever. Companies must be able to quickly adapt their logistics strategies and supply chain operations to minimise delays and maintain efficiency.

In the context of the Indian subcontinent, resilience hinges on both technological and operational agility. While data-driven forecasting helps businesses anticipate potential challenges, success ultimately depends on how quickly organisations can modify their sourcing strategies, strengthen supplier relationships and work closely with logistics providers to navigate regulatory and infrastructural constraints. Disruption is a given, and businesses that combine proactive planning with swift execution – leveraging both predictive tools and operational flexibility – will be better positioned to maintain supply chain stability in an unpredictable world.

Technology, AI and data-driven strategies are redefining logistics and supply chains, enabling better container utilisation, faster responses to disruption and more efficient operations. This shift goes beyond cost reduction, with many companies diversifying suppliers and adopting multi-modal transport solutions to help build resilience. Businesses are also integrating digital tools to enhance collaboration, as customers increasingly prioritise efficiency, adaptability and sustainability over mere price considerations. India’s competitive edge lies in its human capital, but realising this potential requires significant investments in upskilling. As global supply chains evolve, companies are moving away from commoditised shipping towards more innovative, tailored solutions that offer tangible value. This shift is essential not only for improving predictability and managing uncertainties but also for generating the resources needed to invest in sustainability initiatives, such as green fuels and emission control measures.

Innovation and AI-driven efficiencies

CH Robinson is enhancing supply chain efficiency through innovation and advanced technology. By adopting a flexible, multimodal approach, it has rerouted shipments through alternative hubs like Colombo and Dubai, leveraging transport combinations such as sea-air, air-sea and air-air to mitigate delays and optimise costs. Inland distribution has also improved, owing mainly to strategic ocean freight conversions for more efficient last-mile delivery. Additionally, the company integrates predictive analytics and real-time weather data to improve shipment tracking and estimated arrival times, allowing for better planning and proactive decision-making.

At the core of this transformation is Atmosphere, CH Robinson’s AI-powered system, which has revolutionised truck brokerage – its largest business segment in North America – by automating logistics processes and cutting booking time from 15 minutes to just 30 seconds. Now expanding into global forwarding, Atmosphere is set to streamline international shipments and enhance data-driven logistics management. With continuous advancements in AI, automation and data integration, CH Robinson is strengthening supply chain resilience, ensuring greater speed, efficiency and reliability in an increasingly complex global logistics landscape.

Sustainable supply chains

Sustainability in green shipping is becoming a priority for customers, though it was temporarily overshadowed in recent years by rising transit times and freight disruptions. Companies are seeing rising demand for sustainable solutions, but the focus needs to shift from viewing sustainability as a cost to recognising its long-term value. While logistics managers typically focus on cost reduction, incorporating sustainability into their KPIs is essential. This may involve adjusting expectations, such as reducing costs by 10% and investing the remaining 10% in sustainable practices. Addressing climate change is an urgent task, and companies must be prepared to make investments for the future.

To help clients adopt greener practices, non-asset-based logistics providers are thinking creatively, exploring solutions like biofuels, energy credits and better container utilisation. A key shift is moving from carbon offsetting to ‘insetting,’ where businesses focus on making their operations more sustainable, such as by improving container use or installing solar panels. Although sustainability investments faced cost-related challenges during the pandemic, the focus is now shifting back toward incorporating sustainable practices into daily operations. Businesses are recognising that sustainability can be achieved without significantly raising costs, especially by optimising supply chain operations.

Risk and resilience

Businesses face mounting risks from economic volatility and geopolitical instability, making supply chain resilience essential. To counter uncertainties around inflation, and fluctuating trade conditions, companies are diversifying suppliers across regions, adopting multi-modal transport strategies, and shifting away from just-in-time inventory models to build buffer stock. A focus on landed cost and overall spend rather than just cost-cutting allows for greater flexibility, while real-time data and predictive analytics help anticipate risks and optimise logistics.

Geopolitical risks, including supply chain disruptions, trade restrictions and blocked shipping routes, further complicate global operations. Businesses must balance predictive monitoring – such as tracking regulatory shifts and political climates – with agile response strategies, including alternative transport routes and contingency planning. Strong relationships with carriers, open communication with customers and digital shipment visibility tools enable companies to respond swiftly to emerging challenges. As disruptions become the norm, those that combine proactive planning with operational flexibility will be best positioned to navigate uncertainty and maintain stability.