Disruption is the only consistent aspect of supply chains. They will continue happening whether or not they make headlines. Every unexpected delay can have extensive downstream effects on small businesses, impacting reputation and revenue. Building resiliency is crucial since disruptors will always exist within extended supply networks. 

Small Businesses Should Expect Supply Challenges 

While many pandemic-era supply chain issues have been resolved, some — like skill scarcity and demand fluctuations — persist. Small-business owners may continue feeling their effects in procurement, transportation logistics, warehousing and fulfillment. For many, this information isn’t news. They have adapted to their new reality. 

However, things are changing. Concerningly, new disruptors are emerging. Already, trade is becoming increasingly fragmented as geopolitical tension, labor shortages and domestic policy changes become more prominent. Such issues pose a strategic challenge for companies — especially those who ship internationally. 

For instance, President Donald Trump said his administration will impose a 25% tariff on Canada and Mexico in February. He also discussed imposing 10% duties on imports from China and the European Union. This new tax could affect consumer demand, shipping prices and trade route efficiency. 

In January 2025, the World Economic Forum’s Centre for the New Economy and Society released the Chief Economists Outlook report. It revealed that just 10% of chief economists expect companies will adopt a wait-and-see strategy. Around 91% believe restructuring is somewhat or very likely by 2027. 

Regardless of the approach, these professionals foresee supply chains quickly evolving in response to increasing fragmentation. Dynamic, resilient supply chains are essential for anticipating and responding to emerging disruptors without unnecessarily increasing logistics and inventory expenses. 

Why Improving Supply Chain Resiliency Is Imperative 

Anything from a heavy-duty truck accident to an unexpected information technology system outage can create bottlenecks, causing unplanned downtime. What happens when a company’s sole distributor can’t find a replacement fleet driver? What about when a vendor says it can’t fix the technical issue until its only qualified technician returns from paid time off?

According to Kelton Kosik, the head of supply chain operations at a division of the United Parcel Service, labor shortages will have downstream effects on distributors and retailers. Even though the recent strain on global supply chains has calmed, the lack of talent during peak shipping seasons will affect manufacturing, transportation and fulfillment, slowing the economy. 

In many supply chains, there are not enough people to produce, move and deliver goods on time. Even when there are enough skilled workers, poor inventory management or dependence on a single supplier complicates things, resulting in downstream delays. 

The problem is that many decision-makers aren’t focusing on things within their control. As of 2024, only 22% of businesses have a proactive supply chain network to mitigate disruptions, making them vulnerable to delays, inventory shortages and lost revenue. More of them should prioritize resiliency. 

How Businesses Benefit From Becoming Resilient

The main benefit of building a more resilient supply network is increasing profit. Even minor, incremental improvements can lead to substantial gains. Business owners can double their net profit by reducing logistics expenses from 9% to 4%, giving them a much larger safety net when business is slow. 

However, resiliency is not just about retaining customers — it’s about building a reputation. Whether people shop online or visit brick-and-mortar stores in person, they expect to be able to receive what they want when they want it. They remember when their expectations are exceeded and will hold the brand in higher regard. 

A good reputation and brand loyalty increase competitiveness, helping small businesses stay afloat during challenging periods. This is especially practical for those competing with massive online marketplaces or multinational retailers because it allows them to build a large, devoted customer base.

How Businesses Can Build More Resilient Supply Chains

Decision-makers don’t need a wealth of resources to navigate consumer demand and mitigate disruptions. If they follow these tips, they can easily build more resilient supply chains.

1. Avoid Issues With Inventory Management

While avoiding a stockout is key for keeping revenue, customer retention and brand reputation stable, overstocking is an unnecessary expense. According to the U.S. Chamber of Commerce, inventory accounts for 25%-35% of total costs, making it the second-biggest cost for small businesses next to labor. 

Business owners should adopt effective inventory management strategies to manage carrying costs without risking stockouts. For instance, with just-in-time inventory, they only order from suppliers as needed. Companies can also harness emerging technologies, implementing AI algorithms to analyze historical trends to better predict future inventory demands.

2. Improve Flexibility With Diversification

Even when operating in a niche or working with a small customer base, a single supplier strategy is not a wise business decision. If a primary shipping route in that business’s region closes or it experiences unexpected downtime, it can put owners in a tough spot. Diversification — working with multiple suppliers at various locations — is essential for resiliency. 

3. Boost Visibility With Technology

Artificial intelligence makes dramatic productivity and accuracy gains possible. According to one study, implementing this technology within a supply chain reduces fulfillment mistakes by 25%, expediting delivery by nearly one week on average. 

Small businesses may not have the same resources as large enterprises, but they can still invest in helpful technologies. Using a managed service provider or third-party vendor may be more cost-effective than developing a solution from the ground up. 

4. Increase Responsiveness With Automation

Unlike medium- and large-sized firms, small businesses are often ill-equipped for sudden fluctuations in demand. Automation technology can help them process requests, coordinate with their suppliers or fulfill orders, expediting delivery when they lack the labor to do so themselves.

Building and Maintaining a Resilient Supply Network 

Once business owners build resiliency, they must maintain it. Although an extensive analysis of their suppliers, logistics partners, customers and competitors would be ideal, it isn’t necessary. Instead, they should focus on revisiting resilience and assessing whether or not they still meet the core requirements.