The global retail landscape is being upended by powerful forces reshaping supply chains: trade tariffs, evolving and divergent regulations and physical climate risks. It is more critical than ever for retailers to have a comprehensive and detailed understanding of their supply chains and to use analytics to address the myriads of threats they face.

The imposition of tariffs can drastically alter the cost of goods, rendering established supplier relationships uneconomical. This has pushed many retailers to explore diversification, near-shoring, or even reshoring, leading to significant reconfigurations of manufacturing and logistics networks. The immediate impact is often felt in increased operational complexity and potentially higher consumer prices.

However, the challenge extends far beyond geopolitical trade wars. The growing urgency of climate change and the degradation of nature is introducing a profound layer of complexity.

To address this, a number of jurisdictions are implementing sweeping regulations targeting business’ impacts on the environment. Notably, the European Union’s Deforestation Regulation demands unprecedented levels of supply chain transparency and traceability, requiring retailers to pinpoint the exact geolocation of raw material origins and   to provide evidence of the absence of recent deforestation. Meeting this demand  is a monumental undertaking, especially for the retail industry with its long and fragmented supply chains.

Global retail organisations are facing additional challenges in the shape of climate-and-nature-related risks to business. Extreme weather events are increasingly disrupting operations, damaging infrastructure and impacting agricultural yields. These events can lead to sudden supply shortages, increased transportation costs and significant reputational damage if a retailer is perceived as unprepared or unresponsive.

Against this uncertain and dynamic backdrop, a focus on supply chain cost and efficiency alone is no longer sufficient. The path forward for sustainable growth and competitive advantage lies in leveraging advanced analytics to inform strategic decision-making, creating supply chains that are not just lean but also robust, responsible and ultimately profitable.

Leveraging advanced data analysis, modelling and predictive tools, businesses can map their entire supply network beyond first-tier suppliers to uncover hidden vulnerabilities and identify geographic hotspots prone to climate hazards, like floods, droughts, extreme heat and wildfires. This allows retailers to quantify potential disruptions to operations, assess financial impacts and develop proactive strategies, such as supply chain diversification, alternative raw material sourcing, resilient transportation networks and investment in climate mitigation and adaptation measures.

The use of strategic prioritisation tools, such as Risilience’s Location Look-Up Tool, can help to focus initial efforts, ensuring that the most impacted locations and immediate critical risks can be addressed to maximise return on investment.

Tariffs, regulations and climate risks are not just challenges, they are catalysts for fundamental supply chain transformation. By embracing advanced analytics, global retailers can move beyond reactive measures, proactively shaping sustainable and resilient supply chains that deliver not only business value but also a positive impact on the planet. In fact, investment in nature-based solutions can have the co-benefit of strengthening an organisation’s supply chain

A truly resilient supply chain, built on data-informed decisions, provides a significant competitive advantage, allowing retailers to adapt faster and maintain continuity in an increasingly unpredictable world.