TAKEAWAYS Shaping the Future of the Global Supply Chain
RISKY BUSINESS Supply chain headlines are filled with geopolitical risk references these days, and for good reason—it’s one of the main factors companies consider when making global sourcing decisions. Rather than deglobalize to avoid the risk, companies are reorienting their supply chain and sourcing decisions to minimize risk and remain resilient. That’s the lens of Proxima’s latest Global Sourcing Risk Index , developed with Oxford Economics, which zeroes in on the regions retailers rely on most. The study finds that Mexico, Turkey, and Russia sit at the top of the sourcing risk list—but for very di erent reasons. Mexico: As nearshoring accelerates, Mexico’s central role in U.S. and EU supply chains brings eciency gains but also heightened exposure to cross-border security risks like cargo theft , with greater volumes putting pressure on already stretched protocols. Turkey: Long positioned as a gateway between East and West, Turkey now brings a tangle of price volatility, reputational challenges, and geopolitical friction —making it both a strategic hub and a high-maintenance risk. Russia: With its ongoing war in Ukraine and deepening sanctions, Russia represents a more clear-cut case of legal and operational barriers that complicate or outright block retail sourcing. The consequences of these risks are already showing up in the numbers, the Index finds. Retailers face higher logistics and insurance premiums, longer lead times due to Red Sea route diversions, and even working capital strain as they pull forward stock ahead of the critical holiday season to hedge against congestion. Categories from apparel and textiles to furniture, electronics, footwear, and even some foods are feeling the pressure. Still, the study notes that retailers aren’t standing still. They’re reshaping strategies to build resilience without sacrificing speed or margin. Common responses include: Multi-sourcing and regionalization: Spreading bets by balancing higher-risk hubs (Turkey, Mexico) with more stable alternatives in Eastern Europe and North Africa. Flexible transportation strategies: Mixing ocean and air freight, and dynamically shifting port selection to optimize for congestion, lead time, and capacity in real time. Digitalization and data: Leveraging predictive analytics for smarter inventory management and scenario planning, plus traceability tools to strengthen compliance.
WELCOME TO THE NEWGEN ERA
You may not be familiar with the term “new-gen supply chain,” but you’re likely already operating in one, according to Capgemini Research Institute. Its latest report defines a new-gen supply chain as one that is agile, sustainable, and powered by AI. The idea has gained traction as global supply chains face escalating turbulence from trade disputes to cyber threats and shifting customer expectations, Capgemini posits. What worked yesterday—linear chains built for eciency—won’t cut it tomorrow, finds the report, New- Generation Supply Chain: Connecting the Links to Reach Common Goals, which draws on responses from 1,000 senior executives across 13 countries and four key sectors. Key findings include: • New-gen supply chain is a top priority: 70% of executives rank it among the top three tech trends for 2025, while transformation progress has grown from 54% in 2022 to 72% in 2025. • AI and agentic systems are reshaping operations: 67% of executives believe agentic AI will boost productivity, and 58% say it will transform supply chain frameworks. • Sustainability drives eciency: 76% of organizations have a comprehensive supply chain sustainability strategy, and over three- quarters agree that sustainable practices reduce costs and deliver long-term business value. The report also o ers a roadmap for getting to new-gen, which includes these actions: • Embrace resilience as an ongoing strategic priority. • Stay ahead of threats with active risk management. • Strengthen governance and ensure human-centered agentic AI implementation. • Collaborate to build sustainable and competitive supply chains. • Enable robust data foundations through AI and implement cybersecurity protocol throughout the value chain. • Encourage cross-functional alignment and co-create solutions with suppliers.
14 Inbound Logistics • September 2025
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