________________________________________________________________________________________________________________________
How are you seeing increased regulation impacting supply chains and how can supply chains navigate these challenges? The biggest impact for manufacturers hasn’ t necessarily come from tariff levels per se; it’ s the unpredictability and inconsistency of the messaging that has made managing supply chains incredibly difficult.
Increased costs have also been a huge factor and have prompted companies to look at where they can cut expenditure. This, in turn, could have a devastating effect on supply chain workers. Especially if companies only see due diligence as a cost and not an investment. Even when geopolitical tensions ease, some decisions are not necessarily reversed, and the impact and consequences will be felt for longer.
What is your advice for companies looking to diversify their supply chains in the face of uncertainty? Many brands have already taken steps to diversify their supplier base outside of China. This may require companies to find new suppliers in locations that are not well known to procurement teams. Indonesia is one location seeing huge investment, for example, with factories being constructed in as little as 18 months.
Organizations are having to move quickly to remain agile and resilient. However, it’ s vital that they don’ t rush their due diligence and that any factory partners being incorporated into the supply chain uphold ethical and social standards. One of the best ways to achieve this is to connect with facilities that already meet ESG requirements. This is where industry collaboration – and tapping into existing networks and partnerships – can make a huge difference and can ensure that supply chains are both ethical and agile.
Can you elaborate on the link between worker wellbeing and productivity? How can we shift the mindset to one that prioritizes wellbeing in return for supply chain resilience? We know that workers who feel heard, protected, and valued are more productive at work. For example, one factory that has participated in our Family-Friendly Factory program since 2021 reported a 91 percent fall in employee turnover in the two years after joining the program. They also experienced an increase in the number of promotions and employee recognition awards amongst workers who benefited from the employerfunded childcare program.
What do you see as the biggest challenges facing supply chains in 2026? My top five supply chain challenges for 2026 are: continued geopolitical instability, sustainability demands, technological
12