Andrew Black, Director at Efficio: What does 2025 Hold?
Efficio has grown purposefully as specialists and has grown to become the world’s largest independent procurement and supply chain expert with more than 1,300 staff across North America, Europe, the Middle East and Asia.
Partnering with its clients to identify, deliver and sustain business improvements by managing supply chain risk, resilience and sustainability, reducing costs and transforming their procurement functions.
Efficio's success comes from combining deep industry expertise with its digital platform, eFlow, which helps drive better procurement and supply chain results.
Andrew Black, Efficio Director, shares his insights on the top trends and challenges set to impact businesses and their supply chains in 2025
Ongoing geopolitical instability
“The Russian invasion of Ukraine continues to create significant uncertainty which impacts energy markets, security and international trade. Potential cyberattacks, including on critical infrastructure like undersea internet cables and regional destabilisation (e.g., Houthi rebels targeting Red Sea shipping) are also likely to further strain supply chains and raise costs.
“This year, the closure of specific trade routes, such as the Suez Canal, has resulted in rerouted shipping, longer transit times and higher freight rates.
"This has made global trade less predictable and more expensive, highlighting Europe's reliance on secure and efficient supply chains.
“In response to these disruptions, Europe is expected to increasingly focus on onshoring and nearshoring efforts, particularly in strategic industries like electric vehicle battery production. This shift aims to reduce dependency on distant markets, notably China and mitigate supply chain risks.”
Trade with China and a decline in international travel
“Europe will continue to balance trade with China while protecting strategic industries, yet geopolitical tensions and travel disruptions (e.g., airlines avoiding flights over Russia) will make this increasingly challenging.
“The decline in business travel post-COVID, as seen in major European airlines cutting flights to China, is also signalling broader changes in global supply chains. This shift away from business travel could see reduced demand for long-distance logistics and a further pivot toward regional trade.”
Supply chain resilience through visibility and strategic contracts
“Building supply chain resilience in the face of these challenges will require enhanced visibility and transparency. Companies will increasingly invest in strategic supplier relationship management (SRM), better communication with suppliers and the use of technology like web scrapers to gain insights into global supply chains and potential bottlenecks.
“Companies will also look to incorporate clauses into contracts that allow for better monitoring of their suppliers and even their suppliers’ suppliers. These measures will improve transparency and ensure that companies can react quickly to challenges in the supply chain, such as product allocation and delivery delays.”
A shift away from one-size-fits-all supply chains
“European businesses are moving away from the traditional supply chain model, which often focused on outsourcing manufacturing to low-cost countries, particularly in Asia. Instead, businesses are recognising the need for more tailored supply chain strategies, designed based on the specific characteristics of different products in their portfolios.”
A focus on product-specific supply chain design
“Companies are increasingly designing supply chains that vary according to the nature of the product. Low-margin, high-value products may continue to be sourced from low-cost countries, while high-value, strategic products could be onshored or nearshored. This shift aims to enhance supply chain resilience and reduce geopolitical risks.
“There is also a growing emphasis on product design teams working closely with supply chain professionals to design products that are not just cost-effective but also resilient. The goal is to source components from stable, reliable regions, reducing reliance on complex, global supply chains.”
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