TECH & INNOVATION  /  SME

By Poh-Yian Koh | August 21, 2025

Supply chain resilience isn’t just about having backup suppliers and materials. With rising uncertainty and frequent disruptions, businesses need supply chain strategies that help them anticipate and respond to risks.

• From tariffs to geopolitical tensions, today’s businesses must secure their supply chains against unprecedented disruptions.
• To ensure supply chain resilience, businesses should invest in diversifying operations, proactively monitoring compliance, and gaining real-time visibility into shipments. 
• By tapping into logistics solutions and expert support, businesses can build the capabilities needed to thrive in the face of disruption.

Remember the global chip shortages that resulted from the coronavirus pandemic and disrupted supply chains, forcing Apple to delay the launch of the much-hyped iPhone 12 by two months in 2021? Did you find yourself paying exorbitant prices for a new laptop because of the disruptions? If so, you’re already familiar with what happens when supply chains go wrong.

But when it comes to your business, such disruptions aren’t just frustrating – they delay production, increase costs, and hurt your bottom line. The past few years have seen unprecedented disruptions in global trade.

Geopolitical tensions, new tariff measures, and extreme weather events have brought about greater uncertainty. Between 2023 and 2024, global supply chain disruptions surged by nearly 40%.

In this complex landscape, supply chain resilience has become critical for businesses. Many companies are moving away from a single-supplier strategy and building an agile network that can adapt fast in times of crisis.

With supply chains becoming more unpredictable, resilience goes beyond looking for alternate suppliers or stockpiling materials. Instead, it calls for supply chain strategies that provide diversification, seamless compliance, and real-time visibility across your entire network. At FedEx, we’re developing practical resources and solutions to help businesses strengthen these three keys.

1. Supply chain diversification cushions you from shocks

Strategic diversification is the first key to supply chain resilience. Businesses that work with multiple suppliers can adapt quickly to market changes and keep operations running when disruption hits.

At a recent webinar, FedEx surveyed more than 6,500 Asia-Pacific executives. Our survey revealed that over 52% of firms are considering supply chain diversification within the next 12 months. One in five firms is already putting their diversification plans into action in response to rising uncertainty caused by tariffs and trade policies.

The core of supply chain diversification is “strategic fit”. Beyond simple resource allocation, businesses can boost resilience systematically by building agile, decentralized networks that span different regions.

If you’re an importer, it might involve diversifying your sources to reduce the impact of potential shortages in one country. If you’re a manufacturer, it might mean establishing manufacturing bases or assembly plants on different continents to minimize tariff shocks.

Before diversifying your operations, it’s important to thoroughly assess business conditions in your target regions. Businesses should consider whether a country’s infrastructure, business costs, geographical proximity, and logistics networks offer the right fit.

Southeast Asian countries are becoming popular due to their large populations and competitive manufacturing costs. Key manufacturing sectors like electronics, apparel, and automobiles are experiencing rapid growth in the region. Countries like Indonesia and Thailand are emerging as preferred hubs for Chinese trade, and these shifts are reshaping the global supply chain.

To help businesses explore opportunities in Southeast Asia, FedEx has created the China Knowledge Hub. This hub brings together a wealth of resources, including comprehensive insights into Southeast Asia, Chinese customer success stories, and FedEx support services. Chinese companies can tap FedEx’s extensive logistics network across Southeast Asia to access regional markets efficiently.

Eastern Europe is another growing market for supply chain diversification. Its strategic location in the European Union (EU) and lower labor costs are attracting Chinese car manufacturers and battery suppliers to build local factories and complete electric vehicle supply chains. This enables them to reduce tariff-related costs levied by the EU.

FedEx is strengthening air and ground networks across Europe to facilitate efficient logistics between manufacturing hubs and global markets. In 2024, we launched a regular flight connecting Guangzhou with Liege and Paris, further improving connectivity between Asia and Europe.

2. Agile trade compliance offers a competitive advantage

Supply chain resilience depends on understanding regulatory changes and reacting quickly to ensure compliance. FedEx research shows that 41% of APAC companies are diversifying supply chains as a result of persistent tariff uncertainties. Navigating trade barriers has become a key reason for companies to change how they source and produce goods.

But tariffs are not the only challenge. The constantly evolving nature of customs inspections, origin rules, technical trade barriers, and import/export controls across countries also raises costs and risks.

Companies can stay ahead of risks by monitoring compliance in real time, building a deep understanding of policies, and adapting fast. Rather than scrambling to respond to change, businesses need proactive measures to embed compliance checks into supply chain operations and spot risks before they become disruptions.

Trade compliance has evolved from a back-office function into a core source of competitive strength and risk protection for businesses. By working with logistics providers, companies can tap into insights and operational solutions to build agile, compliant cross-border supply chains.

For example, FedEx’s Global Trade Manager helps customers prepare the necessary customs documents, get specific regulatory information about their shipments, and estimate duties and taxes. For US-bound shipments, our US Tariff Hub provides the latest updates on tariff policies to minimize unexpected costs and delays.

3. Digital visibility accelerates supply chain responsiveness

In an era of volatility, speed and agility are crucial. To respond quickly to disruptions, businesses need real-time visibility across their entire supply chain. Digital technology is key to achieving this, allowing companies to monitor logistics data end-to-end and make timely decisions.

The Internet of Things (IoT) is transforming global supply chain connectivity by enabling precise tracking of goods and vehicles along their entire journey. Using this data, companies can identify issues early and adjust their supply chain strategies on the fly. Data analytics and artificial intelligence (AI) tools can also draw out patterns from this data and generate predictive insights, allowing businesses to anticipate risks and tackle inefficiencies.

FedEx operates at the intersection of physical and digital. We integrate our physical network with digital innovations like AI and machine learning. Leveraging this advantage, we’ve developed digital solutions that make supply chains smarter for everyone.

One example is FedEx Surround, our advanced monitoring and intervention solution. Using lightweight sensors attached to packages, FedEx Surround offers near-real-time visibility of critical shipments. Meanwhile, an AI-powered dashboard provides customizable views of shipment insights and alerts customers to potential delays ahead of time. This empowers businesses to switch from reactive to proactive operations, enhancing supply chain resilience.

Shaping resilient supply chains for future success

Amid global uncertainty, supply chain resilience has become a top priority for businesses of all sizes. But strengthening your supply chain is seldom simple – it’s a journey that requires constant planning and adaptation.

As a supporter and advocate for free trade, FedEx is harnessing technology and decades of expertise to help businesses navigate a changing world. Companies can accelerate the journey to supply chain resilience with our extensive global network, professional trade compliance solutions, and cutting-edge digital tools.

A reliable supply chain lays the foundation for long-term growth, enabling your business to take on the future with confidence.