In today’s unpredictable world, supply chain resilience isn’t just a buzzword it’s a necessity. From volatile trade policies and labor shortages to cyberattacks and extreme weather, a wide range of factors can wreak havoc on a company’s operations. NetSuite is equipped to handle when these disruptions occur.

With NetSuite, you can gain a complete view of your supply chain, from planning and procurement to inventory and delivery.

What Exactly Is a Supply Chain Disruption?

A supply chain is the intricate network of people, companies, and activities involved in creating and delivering a product to a customer. A supply chain disruption is any event that interferes with this process. These disruptions can slow down shipments, degrade product quality, increase costs, and ultimately harm a company’s brand reputation and bottom line.

Remember the pandemic? Empty grocery shelves and weeks-long delays for everything from appliances to electronics brought the fragility of global supply chains into sharp focus. While some of those specific issues have lessened, new challenges like oil price spikes and geopolitical tensions have taken their place. According to a 2025 survey by the Business Continuity Institute (BCI), managing supply chain risks remains a top challenge for businesses.

Internal vs. External Risks

Supply chain disruptions can originate from within a company or from outside influences.

• Internal Risks: Often stem from a company’s own operations. For example, a new business strategy that overlooks supply chain implications, or poor inventory management and a lack of contingency planning within the procurement department.

• External Risks: This list is long and varied—hurricanes, ransomware attacks, port closures, and sudden shifts in consumer demand. These events are often out of a company’s control and can be particularly challenging, especially when a supply chain spans multiple countries and tiers of suppliers. A 2025 RapidRatings survey found that over 60% of businesses saw global supply chain risk as high or very high, with a third of disruptions costing more than $5 million each.

The New Normal: Common Types of Disruptions

While the stress on global supply chains has eased since the pandemic’s peak, disturbances are still common. Experts predict that nearly 7 out of 10 supply chain professionals expect their risks to escalate.

• Natural Disasters & Extreme Weather: Climate-related events like hurricanes, floods, and droughts are becoming more frequent and intense. These can shut down factories, block transportation routes, and destroy raw materials. According to the BCI, over 40% of companies have experienced a moderate to significant impact from these events.

• Labor Shortages: A shortage of truckers, factory workers, and logistics managers can lead to shipping delays and production slowdowns. Automating certain supply chain processes can help, allowing existing employees to focus on more complex tasks.

• Cyberattacks: Supply chains are increasingly a target for cybercriminals. Attackers often exploit vulnerabilities in smaller, less-protected suppliers to gain access to larger companies. In a single year, over 70% of companies reported a significant cyber incident that originated from a supply chain partner.

Efficiency vs. Resilience: Finding the Right Balance

Supply chain efficiency and resilience are both desirable goals, but they can be at odds.

• Efficiency aims to reduce costs and optimize operations in a stable environment, often through “just-in-time” manufacturing and lean inventories. It’s about minimizing waste and maximizing speed.

• Resilience focuses on a supply chain’s ability to withstand and recover from disruptions. This involves building in redundancies, like holding buffer inventory and diversifying suppliers.

A supply chain that is only efficient can be brittle and easily broken. One that is purely resilient might be too expensive to be competitive. The best strategy is to find a balance between the two, creating a system that is both cost-effective and robust.

5 Strategies for Building a Resilient Supply Chain

So, how do you prepare for the unexpected? Here are five key strategies:

1. Identify Potential Risks: Start by cataloging and assessing known risks, like supplier bankruptcies. Use predictive analytics and “what-if” scenarios to identify and prepare for less familiar threats like unpredictable tariff rates.

2. Develop a Contingency Plan: Map out a clear, step-by-step plan for what to do when a disruption occurs. This should include identifying the root cause, prioritizing critical operations, and having alternative suppliers lined up. Remember to review and update your plan regularly.

3. Monitor & Analyze Supply Chain Data: Visibility is crucial. Use digital tools like IoT sensors on trucks and in warehouses to track inventory and goods in real time. This data, when analyzed, can help you detect problems before they spiral out of control.

4. Implement Automation Solutions: Automating tasks like inventory reordering and data entry can reduce errors and free up staff. More advanced solutions, like AI-driven predictive analytics, can forecast potential issues and suggest solutions.

5. Strengthen Supplier Relationships: View suppliers as partners, not just sources of risk. Collaborate with them to develop shared inventory strategies and ensure their business continuity plans are sound. Diversifying your supplier base, perhaps by working with minority- and women-owned businesses, can also introduce new approaches to agility.

By implementing these strategies, businesses can build the resilience needed to not just survive, but thrive, in today’s unpredictable market.