Remember back in 2018 when KFC ran out of chicken? Or, more recently, how a certain iconic beverage was nowhere to be found in UK pubs and supermarkets, sending loyal customers flocking to competitors’ products?. Supply shortages aren’t just an inconvenience—they can disrupt entire industries, frustrate consumers, and tarnish a brand's reputation. While some shortages are beyond our control, others stem from gaps in planning, communication, or technology. Understanding the difference is key to building a resilient and adaptable supply chain.

When circumstances take control

Certain shortages arise from factors no one can predict or prevent. These disruptions ripple across industries and challenge even the most robust organizations.

The World Economic Forum's Global Risk Report 2025 flags rising natural disasters, geopolitical instability, and shifting economic alliances as major threats to supply chain stability. Confronting these challenges requires building resilience through proactive strategies, adaptive planning, and strong collaboration.

• Natural disasters: Hurricanes, floods, and earthquakes have long disrupted supply chains, but as climate change accelerates, these events are intensifying. In 2024, Hurricane Helene damaged a major pharmaceutical plant in North Carolina, cutting off 60% of the U.S. supply of sterile IV fluids, forcing hospitals to ration and delay treatments. 
• Geopolitical events: The Russia-Ukraine conflict caused shockwaves through global energy supplies and agricultural exports, sending commodity prices soaring. Infrastructural damage and blocked ports created a logistical nightmare for businesses everywhere. 
• Geoeconomic confrontations: Trade regulations are another source of disruption. For example, new U.S. regulations banning vehicle tech imports from China and Russia will force automotive companies to scramble for new suppliers. The result? Higher costs and delayed production lines.

From climate disasters to geopolitical tensions and shifting trade policies, supply chains are under constant pressure. Companies must be ready for anything—building resilience, diversifying suppliers, and embracing technology to navigate uncertainty.

Avoidable shortages: missed opportunities

Unlike natural disasters or geopolitical events, avoidable shortages stem from internal missteps. These types of shortages often reveal weaknesses in planning or execution. Addressing these issues is about strengthening the fundamentals of a business and ensuring that internal vulnerabilities don’t cause major disruptions.

• Forecasting failures: Sudden demand surges can catch businesses off guard, leading to shortages and unwelcome media coverage. With AI-driven demand forecasting, companies can anticipate spikes and adjust production levels before supply runs dry.
• Single-sourcing risks: Relying on just one supplier, or even a handful of them—can backfire when they face simultaneous disruptions. In the 2021 semiconductor shortage, several major chipmakers saw capacity hit by COVID-19 lockdowns, compounded by natural disasters and surging demand, creating a ‘perfect storm’ that stalled global auto production, taking an estimated 11.3 million cars off the road, and costing billions in lost revenue.
• Inventory and logistical mismanagement: Poor visibility into stock levels or transportation delays can quickly snowball into major supply gaps. Operational flexibility and stronger communication across teams help businesses pivot when demand or supply patterns shift unexpectedly.

Whether it's forecasting missteps, supplier dependencies, or logistical blind spots, internal weaknesses can be just as damaging as external disruptions. The key to resilience? Smarter planning, greater agility, and technology that keeps supply chains one step ahead.

Turning disruptions into opportunities

With AI, digital tools, and smarter systems, companies can not only survive but thrive during tough times.

• AI and machine learning: These technologies analyze massive datasets to predict demand, spot potential disruptions, and suggest proactive solutions. By improving accuracy and visibility, AI reduces reliance on outdated systems and enables real-time responses. For example, AI can monitor sales trends and social media activity to predict demand spikes, helping businesses adjust inventory levels before a shortage hits.
• Digital twins: By simulating supply chain operations with digital twins, companies can test different scenarios and find vulnerabilities before they become real problems. Imagine testing the effects of a port closure and experimenting with alternative routes—all before any shipment is delayed.
• Blockchain technology: Blockchain brings transparency and accountability to the table. It’s especially useful in industries like food and pharmaceuticals, where tracking the provenance of a product is crucial. With blockchain, businesses can trace products from farm to factory to consumer, reducing the risk of fraud or recalls and building customer trust during times of high demand.
• IoT and real-time monitoring: Internet of Things (IoT) sensors are transforming supply chains. These devices track everything from inventory levels to transportation conditions, enabling businesses to make faster, more informed decisions. For example, temperature sensors on perishable goods can send alerts if conditions are about to cause spoilage, helping prevent supply gaps before they become crises.

Balancing preparedness with cost

While being prepared for disruptions is crucial, businesses must also weigh the cost of resilience. Investing in redundancies, safety stock, and cutting-edge technologies requires careful planning and prioritization.

Sharing data across the supply chain helps synchronize efforts, tackle potential issues early, and streamline operations. When businesses collaborate effectively, they not only prevent shortages—they also create efficiencies that lead to long-term profitability. For instance, sharing insights on production schedules and inventory levels across partners enables quicker, more effective responses when things go wrong.

Conclusion: A smarter approach to shortages

Not all shortages are created equal, but all of them require smart, proactive solutions. By distinguishing between avoidable and unavoidable disruptions, businesses can mitigate risks, reduce costs, and improve their resilience. With AI-powered supply chain orchestration, real-time visibility, and agile responses, companies can stay ahead of the curve and minimize the impact of disruptions—big or small.

While supply chain disruptions are inevitable, their impact doesn’t have to be. The smartest supply chains embrace flexibility and resilience, ensuring they stay responsive, effective, and profitable in a fast-changing world.