What Forecasted Supply Chain Headwinds Mean for Picking a Food Logistics Partner

Tariffs, political instability, climate change, regulatory requirements and multi-source strategies will make 2025 a challenging year ahead for 3PLs. Even when conditions are challenging, resilient providers can leverage those challenges to drive positive

I Qoncept Adobe Stock 261895566
iQoncept AdobeStock_261895566

With the arrival of 2025, it’s all but certain that the next 12 months bring both familiar and entirely new challenges to food and beverage logistics. From new tariffs to evolving regulatory requirements, from geopolitical strife to the immersive adoption of artificial intelligence (AI), or even from climate change to the shift away from single-source strategies, a range of complex and interdependent trends are pointing to a year of change.

In-house and third-party logistics (3PL) teams can view these challenges in one of two ways. On one hand, they can be seen as hurdles to success. On the other, they can be embraced as opportunities to innovate and drive positive change. The path in-house logistics teams take—and the criteria they use to evaluate their third-party suppliers— will matter more than ever over the coming year.

Recent events have brought confluence of challenges

Organizations around the world face shortages in agricultural commodities. Also, many economies have experienced spikes in inflation. As a result, the focus on logistics has sharpened. While supply chains have always been central to business operations, they are now a regular boardroom topic.

Food and beverage companies now look to drive innovation and efficiency in their supply chains to secure the flow of materials and manage costs. As natural resources dwindle in some parts of the world—and as climate change and geopolitical events make logistics increasingly unpredictable—organizations are building smart, new supply chain strategies that include redundant sources for supply.

Multiple-supply models are not only smart, they’re essential, but managing the many moving parts of a multiple-supply model is a tall order for an in-house logistics team. Building new models, applying technology in new ways and responding to business needs in real time will likely necessitate more strategic relationships with third-party logistics partners. The best third-party suppliers will be those that can act as contiguous extensions of in-house teams.

The need for agile third-party partners will also increase in 2025 with the expected increase in tariffs and trade wars—along with continued uncertainty created by the Russia-Ukraine war, military activity in the Middle East and ongoing disruptions in Taiwan and the Red Sea. The expansive networks of third-party providers will likely become increasingly important, as will the ability for those third-party partners to provide deep expertise across all modes.

3 keys to a successful 2025

1. Increase expertise in safety and compliance

Regulatory changes are coming faster than ever at both the national and regional levels. Simply keeping up with new regulations can be overwhelming for an in-house team—not to mention the organization’s own goals. Regulatory complexity will only increase. It’s important to choose a third-party partner with the demonstrated ability to collect and share data with you in a secure manner.

2. Pick providers with proven multimodal capabilities

Given the ambiguity of 2025 and the rise of multiple-supplier strategies, single-mode logistics providers are in a vulnerable position—they simply don’t have the flexibility to adapt how they move freight. For example, if a labor strike emerges in the ports on one U.S. coast, imports will increase in the ports on the other side of the country. Moving goods across the country will require multiple modes and a flexible network of warehouses and facilities.

3. Use data and tracking

The digital tools consumers use to track deliveries have elevated B2B expectations. Business leaders expect parcel tracking capabilities similar to those consumers enjoy every day. In the B2B realm, emerging technologies add a layer of complexity to delivery tracking. With more changes ahead in the digital age, “on-time” means something different. Shipment tracking and data analytics allow the best 3PLs to align with those expectations.

Find partners ready to take on the challenge

Tariffs, political instability, climate change, regulatory requirements and multi-source strategies will make 2025 a challenging year ahead for 3PLs. Some will see these conditions as barriers to quality service, while others will see them as drivers of innovation. Even when conditions are challenging, resilient providers can leverage those challenges to drive positive change. The approach your third-party providers take—and their view of the challenges awaiting the world this year—will have a substantial impact on your supply chain and your business. 

Latest