Turning risk into resilience

Supply chain risk management isn’t simply sneaking into executive agendas—it’s full-on sprinting across the ledger, but it doesn’t have to be an existential threat to your profitability. 

Lehigh University’s quarterly report [Q2-2025 Supply Chain Risk Management Index (LRMI]) surged to 72.14 marking the highest reading since the index’s creation. Supplier risks alone spiked to 87.50, pulling financial alarm bells across industries. If that weren’t enough, 81% of procurement teams report they’ve been hit by supplier disruptions, with 30% of those incidents inflicting damages of at least $5 million.

Meanwhile, supply chain risk mitigation strategies like bloated inventory buffers and premium freight spends can erode margins as fast as disruptions themselves – making the cure worse than the illness.

The question is this: how do businesses break free from these financial chokepoints while still navigating all-time-high risks?

The cost of static supply chain risk mitigation

Behind every high-level risk statistic lies real financial pain. From multimillion-dollar disruptions to freight and inventory inefficiencies, the ripple effects of poor supply chain risk mitigation can drain profitability faster than you might think.

Today’s risk landscape isn’t just high—it’s historic. Here are the breaking points you should be watching:

  • Highest risk reading on record: The LRMI at 72.14 marks its third consecutive quarterly climb and a four-year high. Multiple categories, such as economic, supplier, and government risks, are now skyrocketing above 80!
  • Disruptions hurt at every level: Nearly 62% of executives flag risks as “high or very high,” with 30% of disruption events costing over $5 million each, according to Rapid Ratings’ 2025 Risk Survey Report. These incidents hit operating costs, sales revenue, and productivity simultaneously.
  • Inventory carrying costs anchor growth: Current inventory carrying costs typically tie up 15-30% of your inventory’s value. For slow-turn channels, this can climb to more than 35%, according to OpenSend’s statistics for ecommerce. That’s working capital that could go toward growth or innovation locked in a warehouse.
  • Freight premiums take a bite, too: Paying a freight rate even 10% above the market average might not seem exorbitant—but over a year, it can drain millions from your bottom line. For European shippers, 76% report supply-chain disruptions, forcing costly and reactive replenishment buys. These statistics from Xeneta underscore a hard fact: frequent global supply chain disruptions force businesses into costly, reactive decisions.

With stakes this high, compounding risks and mitigation costs can leave companies stuck between a rock and a red line on their ledgers. But the right mindset, and the right tools, can transform these pain points into profit levers.

Deposco’s precision approach: redefine risk as ROI

Supply chain risk doesn’t have to mean loss. Advanced supply chain software platforms like Deposco prove that smart tech can revamp fulfillment operations and cut costs while strengthening supply chain resilience.

Here’s how:

  1. Unified Visibility Across the Supply Chain: Deposco offers real-time order, inventory, and operational health insights, all accessible through a single cloud-based interface. This eliminates the need for spreadsheets and disparate data sources, providing complete visibility for faster supply chain risk management.
  2. Predictive Risk Dashboards: Dashboards apply SKU-specific data to flag vulnerabilities quickly. Want to optimize your safety stock? The system adjusts those levels automatically—freeing up working capital without flirting with out-of-stock risks.
  3. Dynamic Order and Sourcing Management: Advanced sourcing capabilities consider cost, SLAs, and landed duties simultaneously. Deposco’s Planning software enables rapid adjustments—such as rerouting supply chains around tariffs or logistics spikes—before disruptions impact profitability.
  4. Cash-Flow Safeguard on Inventory: Businesses using Deposco’s WMS and OMS platform often cut 2–5% off working capital tied up in inventory buffers. For a $400 million balance sheet, that’s $20 million freed up to fund growth initiatives.

Technology-driven agility transforms supply chain risk into opportunity, cutting costs without compromising service levels.

Replace Risk With ROI

Learn how Deposco’s platform enhances supply chain risk management and unlocks measurable ROI.

SCHEDULE A PLATFORM TOUR

CTA Image

The bottom line

Profit hemorrhages from skyrocketing freight spends and inventory mismanagement are not inevitable. Neither are multimillion-dollar crises caused by avoidable disruptions. The real risk lies in failing to adopt modern tools that future-proof your supply chain.

Deposco’s platform goes beyond deflecting today’s risks; it helps businesses across industries deploy new competitive advantages—whether via reduced carrying costs, smarter procurement decisions, or fewer disruption events. 

As industries continue to grapple with all-time-high levels of supply chain risk and volatility, companies that pivot now will see these investments deliver significant dividends.

Ready to see how we turn tension into transformation? Learn how businesses already use Deposco to turn risk into ROI.

Schedule a 1:1 strategy session