Supply Chain Superintelligence: December 2024

As 2024 comes to a close, we reflect on a year of challenges and the adaptability needed to overcome them. Our December edition also looks forward to 2025, exploring key supply chain trends: AI-driven strategies, geopolitical impacts, and growing risks from climate disruptions. With this insight, you can build resilience and stay ahead of an ever-changing landscape.

2024:

Challenges and Lessons

By Marco Felsberger

2024 tested global supply chains again and again. From typhoons that disrupted major shipping hubs to strikes that halted freight – against a backdrop of geopolitical tension – it has been a year of exposed vulnerabilities that reaffirms the importance of resilience.

Many companies discovered the need for a dual approach: proactive preparation and reactive agility. Mapping vulnerabilities, running scenario analyses, and building redundancy are key to resilience. Likewise, real-time monitoring, rapid response systems, and informed decision-making can ensure survival during disruptions.

Each event in 2024 was a lesson in resilient, future-ready supply chains.

Natural Disasters: A Persistent Threat

Typhoon Yagi and Super Typhoon Kong-Rey

The early monsoon season saw Typhoon Yagi disrupt operations in northern Vietnam. Ports in Hai Phong and Quang Ninh, a vital gateway for global exports, shut down. While delays were mitigated in part by road and rail, congestion and rescheduling affected global supply chains.

When Super Typhoon Kong-Rey struck Taiwan, operations at critical industrial hubs for the global semiconductor supply chain were badly affected. In combination, these natural disasters significantly slowed operations, showing the cascading impact of cluster vulnerabilities.

How to Build Resilience:

• Proactive: Map at-risk nodes, diversify production, and build transport redundancy.
• Reactive: Use real-time weather tracking and coordinate recovery swiftly.

Hurricane Milton

Hurricane Milton made landfall near Tampa, Florida, bringing heavy rains and winds. Port Tampa Bay ceased inbound and outbound traffic, closing shipping channels before the storm. Other major supply chain centers in Florida, including Miami and Jacksonville, faced moderate impacts. Interior portions of the state experienced severe flooding and wind damage, affecting major roadways and rail lines. This further hindered the movement of goods inland.

Hurricane Milton impacted the supply of high-purity quartz, essential to semiconductor manufacturing, at Spruce Pine in North Carolina: one of the world’s purest quartz mines. This disruption threatened the global supply chain.

How to Build Resilience:

• Proactive: Climate adaptation strategies should map at-risk nodes and diversify production. Planning redundancy in transport, like combining road, rail, and air freight, can soften impact from these events.
• Reactive: Real-time weather tracking systems enable preemptive rerouting, while post-event coordination ensures swift recovery of impacted shipments.

Labor Strikes: The Human Factor

U.S. and Canadian Port Strikes

North America saw a wave of industrial actions this year. On the U.S. East and Gulf Coasts, port strikes slowed the movement of goods. Canadian port strikes compounded the issue, largely for industries reliant on shipments of agricultural products and raw materials.

While supply chains did not collapse, delays increased costs and frustrated customers. Businesses with diversified routes, established relationships with logistics providers, and safety stock could maintain operations, albeit at a premium.

How to Build Resilience:

• Proactive: Plan scenarios and secure contingency logistics contracts.
• Reactive: Build agile communication and adapt logistics strategies.

South Korea Rail Strike

A prolonged rail strike in South Korea impacted exports of semiconductors and petrochemicals. Trucking and air freight remained available, but at significant expense and logistical complexity.

How to Build Resilience:

• Proactive: Plan for labor disruption via scenario planning and form contingency contracts with alternative logistics providers.
• Reactive: Rapid stakeholder communication and adaptive logistics strategies minimize downtime during strikes.

Geopolitics: Resources as Leverage

China’s Export Ban on Critical Minerals

China’s announcement of export bans on gallium, germanium, and antimony shook industries reliant on these materials. Some companies had stockpiles to manage short-term impact, while others struggled to secure alternative sources. Global refining capacity is concentrated in China.

Supply chains are vulnerable to geopolitics. Overreliance on a single country exposes industries to disruption through policy changes and geopolitical tension.

How to Build Resilience:

• Proactive: Map resource dependency and diversify sourcing. Public-private partnerships can help develop domestic or allied production capacities.
• Reactive: Immediate response strategies, including resource reallocation and alternative supplier sourcing, can stabilize operations during geopolitical shocks.

Sabotage: Infrastructure as a Target

French Rail Sabotage

Attacks on the French high-speed rail network during the Paris Olympics disrupted transport across Europe. Rerouting goods through alternative routes increased costs and delays.

How to Build Resilience:

• Proactive: Infrastructure security, cyber and physical, is a priority. Regular audits and coordination with government agencies can reduce the risk of sabotage.
• Reactive: Create contingency plans, including alternative routes and modes of transport, to keep goods moving.

Cyber-Physical Disruptions: The Interconnected Web

CrowdStrike IT Outage

July’s outage at CrowdStrike demonstrated the interconnectedness of digital and physical systems. Airlines canceled over 5,000 flights, with cascading effects on cargo shipments. The outage highlighted the importance of cyber resilience in supply chain stability.

How to Build Resilience:

• Proactive: Businesses must audit IT systems, implement redundancies, and stress-test to find vulnerabilities. Integrating cyber and physical risk planning is no longer optional.
• Reactive: Real-time monitoring and robust incident response frameworks minimise downtime and accelerate recovery.

The Water Rises: Europe’s Flooding Crisis

Storm Boris

Unprecedented flooding in Central and Eastern Europe disrupted industrial hubs in Austria, Poland, and the Czech Republic. Railways, roads, and factories were affected, slowing regional freight. While disruptions were temporary, they show the vulnerability of low-lying industrial areas to climate events.

How to Build Resilience:

• Proactive: Invest in infrastructure – flood defenses and elevated transport routes – to mitigate risk. Include flood zone exposure in supply chain mapping.
• Reactive: Rapid-response systems, including rerouting and temporary warehousing solutions, can keep supply chains moving after such events.

Lessons from 2024: Balancing Proactive and Reactive Strategies

Resilience is a balance between preparation and adaptability. Proactive measures like supply chain mapping, diversification, and scenario planning are the foundation. However, reactive agility enables businesses to navigate disruptions effectively.

• Proactive Actions. Map supply chains from raw materials to end customers.
• Scenario Planning. Test response strategies for disruptions from natural disasters to cyber threats.
• Redundancy Building. Diversify sourcing, logistics, and IT systems to reduce single points of failure.
• Reactive Capabilities. Get real-time alerts to monitor risks and disruptions live.
• Swift Decision-Making. Empower teams to act quickly and decisively.
• Transparent Communication. Inform stakeholders to maintain trust during disruptions.

Looking Ahead: Strength in Adaptation

Disruptions in 2024 weren’t anomalies, but a new normal. In 2025 and beyond, the key to success is the ability to anticipate risks and adapt to them in real-time. Resilience is not just a defensive strategy—it is a competitive advantage.

You can navigate the unexpected. Let’s ensure your supply chain doesn’t just survive disruptions, but thrives because of them.

Supply Chain Trends 2025:

Resilience, Risk, and Strategy

By Harald Nitschinger

Even after years of disruption, 2025 will be pivotal in supply chain risk management. Challenges don’t occur in isolation: with predictive tools and proactive strategies, businesses can minimise impacts and keep supply chains resilient. Here are the top trends and challenges ahead:

Top Trends in Supply Chain Management

1. AI and Predictive Analytics. Predict risks, optimise operations, and diversify suppliers ahead of disruptions.
2. Supply Chain Visibility. Use real-time tools for end-to-end transparency, tackling bottlenecks before they escalate.
3. Regional Diversification. Spread supplier hubs geographically to mitigate risk.
4. Sustainability. Embrace the circular economy and low-carbon logistics to meet rising consumer demand.
5. Agility. Build flexibility in routes, partners, and contingency plans to handle disruptions.

Key Challenges in 2025

1. Geopolitical Risks. Rising tensions, especially in sectors like semiconductors, could lead to shortages and trade barriers. Early preparation is essential.
2. Climate Disruptions. With over 400 natural disasters recorded annually, risk assessments can help maintain operational continuity.
3. Labour Shortages. Skill gaps and workforce participation disparities could slow production. Seek suppliers with stable workforces.
4. Cybersecurity Threats. Tech reliance is a vulnerability. Invest in robust security measures to stay protected.

Strategies to Overcome Risk

1. Proactive Monitoring. AI-driven platforms like Prewave deliver early warnings to identify and respond to risks quickly.
2. Supplier Collaboration. Strong relationships streamline responses and ensure flexibility during disruptions.
3. Tech Investment. IoT, blockchain, and automation improve transparency, efficiency, and resilience.
4. Workforce Upskilling. Training can address labour gaps and build productivity.
5. Compliance Tools. ESG and regulatory platforms keep businesses aligned with evolving standards like CSRD.

2025 will challenge supply chain management, but understanding risks, utilising technology, and staying agile can help you thrive. With the right strategy, you can lead in this important year.

We hope you enjoyed this edition of the Supply Chain Superintelligence newsletter! For more updates, follow us on LinkedIn or visit us at prewave.com.

About Prewave

Our mission has always been clear: to make the world's supply chains more transparent, resilient, and sustainable. Since our inception in 2017, Prewave has become synonymous with supply chain risk management excellence. Today, we are the world's leading end-to-end supply chain risk management platform, ensuring transparency, visibility, and compliance—all in a single platform.