Building supply chain resilience: how Australian businesses can navigate disruptions

The landscape of global logistics is increasingly fraught with numerous and progressively disruptive supply chain disruptions. Hence, establishing the right strategies and partnering with experienced logistics providers like DHL Express is paramount to building resilience and ensuring business continuity.

The impact of supply chain disruptions on Australian businesses is becoming increasingly pronounced, affecting everything from production schedules to customer satisfaction and overall profitability. Resilinc's 2024 supply chain data reveals a striking global supply chain disruption with a 38% increase compared to the previous year. This marks a significant departure from 2023, when disruptions grew by just 5%¹, and this global supply chain disruption naturally has ripple effects, creating substantial challenges for businesses of all sizes.

Closer to home, the Ai Group Australian Industry Outlook 2025 concluded that supply chain disruptions are one of the expected inhibitors to business growth, with 13% of respondents expecting this to be a hindrance, a rise from only 7% in 2024², highlighting a growing concern within the local and global business landscape.

Hence, proactive and robust strategies for mitigating supply chain disruptions are crucial for local businesses to build agile supply chains and ensure long-term operational continuity and customer satisfaction. Additionally, key partners, such as DHL Express, play a vital role in helping businesses navigate and overcome these challenges.

Understanding supply chain vulnerability and disruption risks

Australian businesses face unique challenges that make them particularly susceptible to supply chain vulnerabilities and disruptions, demanding a more strategic and forward-thinking approach to their logistics.

What is supply chain vulnerability?

Supply chain vulnerabilities are the underlying factors that make Australian businesses susceptible to disruptions. These factors increase the inherent risk of interruptions in the seamless flow of goods and services, potentially affecting profitability and customer satisfaction:

1. Geographic distance

Australia's vast geographic distance from major global manufacturing hubs inherently means longer transit times and an increased reliance on intricate international shipping routes. This extended supply line amplifies the risk of delays caused by unforeseen events and contributes to higher global logistics costs, making delivery services more complex.

2. Reliance on specific trade routes

A heavy reliance on specific trade routes, particularly those traversing regions prone to instability, such as key shipping lanes vulnerable to geopolitical tensions or piracy, directly exposes Australian businesses to significant supply chain vulnerabilities. Disruptions along these critical arteries can have a substantial impact on inventory levels and delivery schedules.

3. Climate change impacts

Given the scientific consensus, it's hardly surprising that climate change is emerging as a significant driver of global supply chain disruptions. Australia is unfortunately at the forefront of experiencing significant climate change impacts, including an increased frequency and intensity of extreme weather events like devastating floods, powerful cyclones, and widespread bushfires. These natural disasters can directly disrupt transportation networks, damage critical infrastructure, and cause supply chain disruptions that can take significant time and resources to recover from.

What is supply chain disruption?

Supply chain disruptions are specific events, both predictable and unforeseen, that interrupt the normal, expected flow of goods and services within a supply chain. There are various types of supply chain disruptions that can occur and have a tangible impact on Australian businesses. Here are some examples:

1. Natural disasters

Natural disasters, such as widespread floods that inundate transportation routes, powerful cyclones that damage port facilities, and intense earthquakes that impact manufacturing regions, can severely disrupt supply chains by damaging essential infrastructure. This then causes extensive delays to shipments and significantly impacts production capabilities. Driven by the escalating rate and severity of climate change, these extreme weather events are becoming increasingly common, posing a continuous and growing threat to supply chain stability.

2. Geopolitical events

Geopolitical events, encompassing trade wars that impose tariffs and restrictions, periods of political instability in key sourcing regions, and international conflicts that block trade routes, are becoming increasingly complex and frequent in today's interconnected world. These can create significant uncertainty and severely disrupt established global logistics networks and international shipping operations.

3. Economic fluctuations

Economic fluctuations can significantly disrupt the delicate balance of supply chains. This means supply chain disruptions can arise from various factors. These include sharp recessions in major trading partners, reduced demand, significant currency volatility, increasing import costs, and inflationary pressures impacting the cost of goods and transportation.

How to prevent supply chain disruptions: proactive strategies

With all the aforementioned vulnerabilities and the increasing frequency of disruptions, it is essential to implement proactive measures. Here are key strategies to build resilience:

1. Diversify sourcing and logistics

Diversifying both the sourcing of raw materials and components is a fundamental and robust strategy for mitigating supply chain disruptions and building a resilient supply chain by reducing critical reliance on single points of failure. For example, instead of solely depending on a single supplier in one geographically concentrated country, businesses can strategically cultivate relationships with multiple qualified suppliers located in diverse regions to spread risk.

2. Leverage technology for visibility

Technology offers powerful tools for significantly improving supply chain visibility and enabling more accurate risk assessment. Implementing advanced tracking systems, predictive analytics, and AI-powered risk management platforms can help businesses proactively identify potential supply chain vulnerabilities and understand the potential causes of supply chain disruption before they escalate into significant issues.

According to the Ai Group Australian Industry Outlook 2025, technology remains the highest-ranked investment priority, with a substantial 45% of businesses intending to raise their spending and 18% strategically reducing investment in other areas to prioritize technological upgrades2.

3. Enhance communication and contingency planning

Establishing robust communication channels and developing comprehensive contingency plans are absolutely essential for effectively mitigating the impact of supply chain disruption on local businesses. For example, businesses should have clearly defined protocols for communicating with suppliers, logistics partners (like DHL Express), and customers during a disruptive event.

Furthermore, having well-documented backup plans in place, such as pre-identified alternative transportation routes, secondary suppliers for critical components, or even temporary warehousing solutions, can significantly minimize the negative effects of unexpected interruptions.

Supply chain disruption solutions: DHL Express' support

DHL Express offers comprehensive supply chain disruption solutions and leverages our extensive expertise to help Australian businesses improve their performance by effectively navigating and overcoming these increasingly complex challenges. Additionally, DHL Express' unparalleled international network and inherent operational flexibility enable us to adapt swiftly to rapidly changing circumstances and maintain delivery services even when others face significant hurdles.

Furthermore, DHL Express' advanced technology provides businesses with enhanced supply chain management capabilities and greater visibility. We also leverage sophisticated data-driven solutions to optimize routes and predict potential issues, such as:

• Flexible international express delivery services: Offering a range of speed and service options to adapt to urgent needs and minimize delays caused by disruptions.
• Dedicated customer service teams: Providing proactive support, clear communication, and expert guidance to navigate logistical complexities during disruptive events.
• Innovative and eco-focused services: Offering sustainable logistics solutions that can contribute to long-term business performance and resilience by mitigating environmental risks.

Build a resilient supply chain with DHL Express

Building a truly agile and resilient supply chain is no longer optional but absolutely crucial for the sustained success of Australian businesses operating within the dynamic landscape of global logistics challenges. DHL Express stands as a committed and strategic partner, offering a suite of robust solutions specifically designed to enhance your operational adaptability and minimize the potential negative impacts of supply chain disruptions.

Open a DHL Express account today to access tailored support, expert guidance, and a comprehensive range of delivery services that will empower you to build more robust, agile, and ultimately more successful supply chains. Explore our range of solutions to enhance your performance and gain a competitive edge in the global marketplace.