The Importance of Supply Chain Visibility in 2025

As we kick off 2025, supply chain visibility has never been more important to the success of your business. Let’s review the top supply chain concerns for 2025 and how to address them.

Supply chain concern #1: Rising production costs

Inflation and proposed tariffs by the incoming administration may lead to increased production costs for certain goods. While not all of these costs are avoidable, it is imperative that companies map their upstream supply chains to identify their potential exposure to tariffs, and to identify possible cost-saving opportunities. 

Companies can mitigate some economic uncertainties by implementing diverse cost-management strategies such as negotiating with suppliers, joining group purchasing organizations, and enhancing demand forecasting. These steps can provide an extra layer of financial stability and flexibility in the face of economic fluctuations.

Additionally, companies should use supply chain mapping software to build out an audit trail of their suppliers, beyond just their direct suppliers. With this data, companies can track critical product flows and quickly identify single points of failure, including sole-sourced materials and logistics bottlenecks, or bad actor risks, so you can shore up these weaknesses. These tools can also identify potential compliance issues before they lead to costly fines or disrupt your business.

Supply chain concern #2: Shortages and bottlenecks

Another pressing issue is the struggle to attract and retain skilled workers. A staggering 80% of respondents reported that they were having trouble finding and keeping supply chain-focused employees. More than half (56%) of US businesses said they were short-staffed. Almost a third (30%) said shortages are hampering their ability to accomplish procurement tasks.

This talent shortage affects various aspects of supply chain operations. Respondents noted that data analytics and IT management were two of the hardest roles to attract and retain talent for.

How to address it: Amplify the impact of your staff with powerful supply chain compliance software, which allows you to onboard, train, and map suppliers quickly and easily, saving time and resources. Leading platforms also help you analyze risk and corroborate compliance status, reducing the workload on your internal teams. Some providers also have in-house teams who oversee every stage of the supplier experience, including onboarding and support, with global language expertise to extend your impact even further.

Supply chain concern #3: Cybersecurity threats

Cybersecurity remains a critical concern for supply chain leaders in 2025. As supply chains become increasingly digital, the risk of cyber threats grows.

How to address it: Strengthen your cybersecurity infrastructure to protect your supply chain from potential threats and ensure business continuity. Implement routine employee training sessions to keep staff up to date on cyber threats and conduct regular risk assessments on your tech stack. Future-proof your business by choosing secure, enterprise-grade software solutions instead of piecemeal applications to handle every aspect of supply chain management, including resilience, compliance, sustainability, and more.

Supply chain concern #4: Opaque supply chains risk non-compliance with regulatory requirements

Supply chain visibility is critically important for meeting regulatory requirements and mitigating risks that may arise deep within the supply chain. According to research from KPMG, only 43% of organizations have visibility into Tier 1 supplier performance.

Many organizations already recognize technological investment as a key strategy for enhancing supply chain resilience. Over 30% of surveyed leaders plan to adopt new supply chain management software in 2024; 56% of US respondents said they plan to allocate 6% or more of their company’s 2024 budget to supply chain technology spend.

How to address it: Don’t get caught in an endless cycle of “planning” to invest in technology. By adopting advanced technologies that enhance supply chain transparency, you’ll immediately enable more proactive decision-making and risk mitigation. For example, mapping tools that offer real-time supply chain visualization improve visibility so you can better meet compliance obligations.

Sourcemap helps businesses overcome these supply chain challenges

From uncontrollable factors like economic uncertainty to manageable challenges like supply chain transparency, these obstacles are influencing how businesses source materials across the globe. By understanding the top challenges of supply chain management and proactively implementing effective strategies to address them, businesses can navigate this dynamic landscape with confidence and agility.