Consulting firm Gartner says that chief supply chain officers (CSCOs) must be prepared to enact "geopolitically elastic" strategies to keep supply chains running smoothly in the face of adversity.

Recent years have brought a slew of disruptions to global supply chains, from the pandemic in 2020, to the ongoing shipping crisis in the Red Sea. Given that new reality, Gartner advises CSCOs to expand outside the the normal boundaries of their businesses, by sourcing raw materials from a variety of suppliers, expanding into new markets, and planning for "market-specific" scenarios based on the relative risks in a region. 

"Effective scenario planning must incorporate the changeable nature of geopolitical risks, with AI and advanced analytics playing increasingly important roles in analyzing data from suppliers, governments and the media,” Gartner VP analyst Pierfrancesco Manenti said in a September 4 release. “The best supply chains anticipate — rather than merely react to — geopolitical shifts that present new opportunities or risks.”

In a survey Gartner conducted with 258 supply chain leaders in January, 88% said that they expect to see a "moderate to very high" positive impact from scenario planning around potential geopolitical risks. Ultimately, Gartner says that CSCOs need to prepare their businesses to adapt and grow in the face of these challenges, "rather than attempting to permanently shield their supply chains from risks."