What are the biggest challenges in supply chain strategy?

Supply chains are complex, interconnected systems involving people, infrastructure and technology.
Top view of a port with ships and containers Top view of a port with ships and containers

In today’s global economy, supply chains are more critical than ever. They underpin everything from food security to energy transition and are deeply influenced by geopolitical shifts, environmental concerns and evolving consumer expectations.

Supply chains are vital to food, energy and more, shaped by geopolitics, environment and shifting consumer expectations in today’s global economy.

A well-designed supply chain strategy considers multiple transport modes, road, rail, sea and integrates data and analytics to optimise performance. It also differentiates between the needs of public and private sectors. For governments, supply chain strategy often involves policy design, infrastructure planning and regulatory frameworks. Supply chains are faced with aging infrastructure and shifting trade flows, while governments need coordinated policies and investment pathways.

For businesses, it’s about cost-effective logistics, strategic asset placement and adapting to market demands, as they are under pressure to deliver greater value for customers with faster, more flexible operations while controlling cost.

Challenges in developing a supply chain strategy

Companies across sectors face a range of challenges when developing an effective supply chain strategy. These challenges are often interconnected and require a nuanced understanding of both global trends and local conditions.

Keeping goods moving when trade routes shift

Shifting trade policies, regional conflicts and economic sanctions can disrupt supply chains overnight. Companies must navigate these uncertainties while maintaining continuity in operations.

Building and maintaining efficient supply chains when infrastructure is lacking

Inadequate infrastructure, including limited port facilities, congested roads and weak rail connectivity, can create delays and increase costs, posing significant challenges to efficient supply chain operations.

Decarbonising our supply chains

As sustainability becomes a priority, companies are under pressure to reduce emissions across their supply chains. This involves rethinking transport modes, sourcing strategies and energy use, all while maintaining service levels and profitability.

Planning a supply chain strategy without good data

Effective supply chain planning depends on accurate, timely data. However, companies may struggle with the lack of good data, making it difficult to model scenarios or make informed decisions.

Building resilient supply chains

The COVID-19 pandemic and other recent disruptions have highlighted the need for resilient supply chains. Industry and governments are increasingly focused on building flexibility into their operations to adapt to sudden changes in demand, supply or logistics.

Unlocking strategic potential from supply chain challenges

GHD supports both public and private sector organisations in addressing these challenges through tailored, data-driven supply chain strategies.

For the public sector

We provide policy design services that help governments and agencies shape the infrastructure, regulations and investment environments that underpin national and regional supply chains. This includes:

  • Developing freight and logistics strategies for existing or new commodities
  • Enhancing connectivity between regions and global markets
  • Advising on trade gateways and infrastructure investments
  • Aligning supply chain policy with broader sustainability goals

 

For the private sector

Our team works with industry to design practical strategies that improve efficiency and resilience. Services include:

  • Optimising transport across road, rail and sea
  • Using advanced analytics and simulation modelling to reduce costs and emissions
  • Identifying strategic port gateways for imports and exports
  • Enhancing flexibility in volatile market conditions

 

Our work is grounded in real-world experience. For example, we developed a comprehensive supply chain strategy for the Port of Melbourne, using data mapping to understand trade flows and inform infrastructure planning. Another project involved creating a rail simulation model for NSW Ports, showcasing GHD’s capability in scenario-based planning and digital modelling.

By combining policy technical knowledge and digital tools, GHD helps clients navigate complexity and build supply chains that are fit for the future.

ports with colored container vans

Want to go deeper?

To see how simulation modeling can optimise container port logistics and improve rail operations, read more about the NSW Ports project.
Read more

Related services

Related insights

Related projects

Webinars