Reading Time: 3 minutes

Last Updated on March 19, 2026

Global supply chain disruptions continue to intensify, as geopolitical conflicts, tariffs, material shortages, and transportation delays impact the movement of goods worldwide.  To remain competitive, businesses must rethink supply chain strategies and build resilience into their operations.

Recent data shows that nearly 75% of business owners experienced supply chain disruptions that significantly impacted profitability. On average, each disruption costs around $14 million per event, with nearly 30% of affected companies taking over 12 months to recover.

There is no one-size-fits-all solution. Instead, businesses must develop proactive supply chain risk management strategies tailored to their operations that address current disruptions while preparing for future volatility.

According to the  2025 Annual Risk Survey, 7 out of 10 supply chain professionals expect risks to continue rising. Today’s disruptions are fueled by tariffs, trade restrictions, geopolitical instability, and shifting global regulations. At the same time, internal challenges such as production bottlenecks, poor data integration, and system failures further complicate supply chain management.

How Supply Chain Disruptions Impact Raw Materials

Disruptions are especially critical in chemical and rubber supply chains, where complex formulations depend on multiple materials. For example, compounded rubber formulations can contain up to 20 different raw materials. If even one material becomes unavailable, it can halt production.

As lead times for imported raw materials stretch from weeks to months, availability of raw materials and specialties continue to fluctuate, impacting pricing and production across industries.

Industry data from the Association for Rubber Products Manufacturers shows that tariffs, global trade policy shifts, and offshore production changes are reshaping raw material sourcing.

Additionally, a 2025 industry survey from DP World found:

• 92% of chemical cargo owners experienced customs delays
• 91% faced geopolitical-related disruptions
• 90% were impacted by port congestion

These issues can lead to stockouts, production delays, and increased costs, making supply chain planning more critical than ever.

At H.M. Royal, our supply chain challenges began with the deep freezes in the south and have since expanded to include tariffs, logistics constraints and force majeure. Despite these disruptions, we continue to strengthen supplier partnerships, diversify sourcing strategies, and build more resilient supply networks.

6 Strategies to Reduce Supply Chain Disruptions

While there is no simple fix for global supply chain disruptions, businesses can take practical, proactive steps to reduce risk and maintain continuity.

1. Plan for Supply Chain Delays

Delays due to shortages, tariffs, and transportation issues are now the norm. Businesses should develop contingency plans and maintain regular communication with suppliers to stay informed and adjust quickly.

2. Conduct a Supply Chain Risk Assessment

Identify vulnerabilities by mapping your supply chain from sourcing to delivery. Key actions include:

• Developing disruption scenarios and financial impact models
• Estimating inventory coverage during shortages
• Identifying high-risk or hard-to-source materials
• Creating contingency budgets

3. Build Flexibility into Your Supply Chain

Flexibility is critical in today’s volatile environment. Businesses should:

• Evaluate alternative raw materials or suppliers
• Adjust production schedules as needed
• Encourage cross-functional problem solving

New ideas and alternative approaches can help mitigate disruptions faster.

4. Increase Safety Stock and Inventory Buffers

While not feasible for every business, maintaining strategic safety stock can reduce the impact of extended disruptions. Although this requires additional investment, it can:

• Prevent production shutdowns
• Maintain customer supply
• Create a competitive advantage during shortages

5. Manage Customer Demand During Shortages

When supply is limited, managing demand becomes critical. Effective strategies include:

• Allocation: Distribute limited inventory across customers and products
• Substitution: Offer alternative materials to maintain production
• Dilution: Extend supply using compatible additives (where appropriate)
• Auction: Use cautiously due to ethical and relationship risks

These approaches help maintain customer relationships and operational continuity.

6. Develop a Supply Chain Recovery Strategy

Disruptions are temporary, but how you respond determines long-term success. Use disruption periods to:

• Optimize inventory levels
• Improve supplier diversification
• Streamline logistics and operations
• Evaluate underperforming products

Companies that invest in supply chain optimization during disruptions emerge stronger and more resilient.

Building a More Resilient Supply Chain

At H.M. Royal, we are committed to transparency, communication, and proactive supply chain management. While today’s environment makes it difficult to guarantee perfect delivery performance, we provide customers with timely insights and material availability updates so they can plan effectively.

Supply chain disruptions are no longer temporary events; they are an ongoing business challenge. Through strong partnerships and strategic planning, companies can navigate uncertainty and maintain operational stability.

For questions or supply inquiries, contact an H.M. Royal sales specialist.