The last decade has delivered some of the most disruptive supply chain catastrophes in modern history. From factory shutdowns and forced labor scandals to geopolitical trade shifts and supplier collapses, these events have reshaped how procurement and supply chain leaders define and prioritize risk.
The Sphera 2025 Supply Chain Risk Report reveals the extent of challenges suppliers faced in 2024, with bankruptcy declarations surging by 48%, force majeure declarations jumping 61% and ESG-related risk indicators rising 6% during the same period.
This post explores how a decade of disruption has transformed the playbook for how enterprise leaders approach risk frameworks, investment decisions and supplier accountability.
Prioritizing deep supplier relationships over surface-level monitoring
Historical supply chain crises like the Aisin fire of 1997 and the Boeing 787 battery crisis demonstrate how a single point of failure in a complex supply chain can have cascading effects.
The Aisin fire destroyed a factory that produced brake fluid proportioning valves (P-valves) for Toyota, which threatened to halt their entire production operation. Comparably, the 2013 Boeing 787 Dreamliner crisis involved lithium-ion battery fires that led to the grounding of all 50 Dreamliners worldwide for several months. These events reveal how deeply interconnected modern supply chains have become.
Today’s procurement and supply chain leaders have learned that deeper, more collaborative relationships with suppliers offer the level of visibility they need. Sphera’s risk report found that preventive insights now surpass event-based alerts, signaling a shift in how companies approach supplier viability risks.
3 practices that deepen supplier visibility:
- Installing proactive monitoring systems to detect early warning signs, such as revenue downgrades and growth outlook volatility
- Tracking suppliers’ key employee turnover, often an indicator of looming financial distress
- Increasing visibility into mergers and acquisitions activity
Elevating N-tier visibility from nice-to-have to mission-critical
The colbalt mining human rights crisis, which gained widespread attention in 2016 and continues to linger today, uncovered child labor and unsafe conditions in Congolese mines supplying over 60% of global cobalt for batteries. This exposed how limited visibility into lower-tier suppliers can lead to reputational and regulatory risks.
Similarly, the 2021 Ever Given Suez Canal blockage reveals the dangers of unmapped supply chain dependencies. This event halted the Suez Canal for six days, delayed over 400 vessels, and disrupted an estimated $9 billion in daily trade.
Sphera’s risk report highlights that while the total volume of delivery-related risks declined by 7% compared to 2023, the frequency remains significant, averaging nearly 15 incidents per year per company. Natural hazards continued their upward trend, with flash floods surging by 60% and volcanic activity rising by 101%.
How leaders are monitoring sub-tier risk:
- Using software for supply chain visibility to identify dependencies and vulnerabilities
- Preparing for the increased frequency of high-impact events
- Developing strategies that account for increasing geographic risks
Shifting from reactive tools to predictive technology
The COVID-19 pandemic, the most profound supply chain disruptor in decades, paralyzed global networks with factory closures, port gridlock, and raw material shortages. It exposed the fragility of traditional risk management, as companies struggled to adapt without real-time data.
Since 2020, digital transformation has accelerated dramatically. The Sphera report notes that “incidents tied to quality surged by 22% [in 2024], underscoring the persistent vulnerabilities within supply chains.” Without proper digital solutions, these risks remain difficult to anticipate and mitigate.
3 actions enterprise leaders are implementing:
- Deploying AI-powered monitoring tools that detect supplier financial stress indicators before triggering disruptions
- Integrating real-time transportation visibility platforms to anticipate route disruptions before they impact delivery
- Establishing digital quality management systems that flag supplier site changes to prevent the 14% increase in defective components noted in the report
Moving beyond single-region strategies after costly lessons
The 2011 Japan earthquake and tsunami exposed geographic vulnerabilities, halting Toyota’s production across 20 plants as critical suppliers faltered, with output dropping 78% in April 2011.
Brexit’s 2020 supply chain fragmentation, driven by new customs rules and labor shortages, further highlighted risks of regional dependency. These events pushed leaders to diversify sourcing and strengthen resilience against localized risks.
Sphera’s risk report emphasizes that “The global supply chain landscape continues to evolve, shaped by interconnected risks and the challenges of navigating an increasingly fragmented regulatory environment.” Geopolitical tensions, regional conflicts and regulatory fragmentation all contribute to a complex risk landscape.
How leaders are de-risking supply chains from regional disruptions:
- Adapting sourcing strategies to address a fragmented regulatory environment
- Creating redundant supply networks across regions to prevent localized disruptions
- Monitoring specific geopolitical triggers, including trade policy shifts, sanctions, and social unrest
Cultivating a proactive organizational culture?
Lessons from a decade of disruption have fundamentally changed how enterprise leaders think about and manage supply chain risk. The focus has shifted from efficiency at all costs to a more balanced approach that prioritizes resilience, visibility and agility.
Sphera’s Supply Chain Transparency solution gives organizations the tools they need to navigate this new reality with confidence. By providing end-to-end visibility, supplier sustainability performance monitoring and AI-powered risk alerts, Sphera helps enterprise leaders build more resilient, adaptable supply chains capable of withstanding whatever the next decade might bring.
The trends revealed in Sphera’s 2025 Risk Report suggest new attention to supplier engagement. For further reading on the forces defining today’s supply chains and how today’s leaders can adapt, read our eBook, 10 supplier catastrophes that shaped modern supply chains.
Ready to see the risks poised to affect your organization? Get in touch with a Sphera expert.
