How CFOs Can Manage for Today’s Supply Chain Choke Points

As large as the world is, the intricacies of global trade and commerce are channeled through a surprisingly small number of critical arteries.

Chokepoints like the Suez Canal, the Panama Canal, the Strait of Malacca and a short list of major ports, like Los Angeles and Shanghai, function as both lifelines and liabilities for businesses worldwide, particularly B2B firms.

When these critical supply chain on-and-off-ramps falter, the ripple effects are frequently devastating. Despite ongoing inroads being made in supply chain risk mitigation by logistics technology and the maturation of predictive analytic solutions, global businesses remain vulnerable to disruptions.

But not all sectors face the same risks. Industries heavily dependent on just-in-time (JIT) delivery, like automotive manufacturing and retail, are particularly vulnerable.

For example, when it comes to the automotive sector, major seaports like Shanghai, Rotterdam, Los Angeles and Long Beach are critical for transporting parts and finished vehicles, while the refinement of electric vehicle (EV) battery materials is heavily concentrated in China.

Similarly, the retail supply chain is heavily globalized, particularly for fast fashion, electronics, household goods and food products, resulting in risk across key trade corridors and shipping lanes where congestion, strikes or even natural disasters can cripple supply chains.

Against this backdrop, the time for leaders to prepare for supply chain disruption is, ultimately, long before any failure sparks its far-reaching procedural and operational impact.

Read more: Tariff Turmoil Puts Supplier Risk, Supply Chain Management Under Microscope

Identifying Vulnerabilities Before They Become Failures

Single points of failure are, by definition, preventable, but the contemporary supply chain and logistics landscape can contain a surprising number of them.

Managing chokepoints may require a combination of predictive technologies, strategic sourcing and a mindset oriented toward resilience and flexibility. Failure to adapt can expose deeper enterprise vulnerabilities such as issues in production capacity, logistics and demand forecasting.

As PYMNTS Intelligence data in the March 2025 Certainty Project reveals, escalating trade tensions marked by the recent imposition of tariffs have introduced a wave of uncertainty across various sectors, notably impacting mid-sized companies. These firms, often operating with intricate global supply chains, now face challenges that demand strategic recalibrations to maintain resilience.

These challenges, which include navigating complex global supply chains, digital transformation and market unpredictability, are increasingly falling under the purview of the 21st century CFO.

After all, despite the best-laid plans, disruptions are inevitable. What separates resilient organizations from reactive ones is the ability to quickly pivot. Scenario planning around everything from port blockages to cyberattacks and natural disasters has become a critical tool for businesses seeking to prepare for the worst.

Still, as PYMNTS Intelligence found in the report, “Data-Driven Advantage: How Grocery and Retail Merchants Can Accelerate Growth,” a collaboration with Carat from Fiserv, 65% of grocery retailers lack real-time supply chain data.

See also: This Week in B2B: Embracing Complexity Is Transforming Back Offices

Technology’s Role in Mitigating Supply Chain Risk

As the operating environment becomes increasingly dynamic, B2B businesses are leaning on back-office innovations to mitigate risk in their supply chains. While conventional risk assessment remains foundational, companies are increasingly turning to artificial intelligence (AI) and machine learning (ML) to forecast disruptions before they metastasize.

Traditional supply chain visibility often stops at tier-one suppliers, but new technologies can enable firms to go deeper to tier-two or tier-three suppliers. At the end of the day, the more granular the visibility into the supply chain a business has, the better its resiliency planning can be built out.

Predictive analytics, bolstered by real-time data from IoT devices, can allow companies to anticipate everything from geopolitical risks to sudden shifts in demand. For instance, knowing when a supplier is nearing capacity or when a shipment is delayed at a critical juncture can enable rerouting before the issue cascades into a broader crisis.

Plus, as supply chains stretch across continents, technology becomes indispensable in managing cross-border risk. Yet while front-line logistics and supply chain operations draw most of the attention during crises, the real battle often begins in the back-office. Enterprises with rigid, antiquated systems are less able to respond swiftly to disruptions, particularly when operating across borders.

To adapt to new realities, companies are rethinking their enterprise resource planning (ERP) systems and integrating them with AI-powered platforms that provide real-time insights. In many cases, this means moving from monolithic systems to modular, cloud-based architectures that can be quickly adapted to changing conditions.

In today’s shifting environment, the automation of procurement processes is becoming a necessity rather than a luxury.

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