CIO Leadership in Turbulent Times: Strategies for Overcoming Global Trade Uncertainty and Supply Chain Challenges

1. Background

In a world defined by uncertainty, global supply chain resilience is no longer optional—it’s a strategic imperative. As CIOs, your role in shaping the technological backbone of supply chains is critical to ensuring business continuity, operational efficiency, and competitive advantage. This ViewPoint highlights actionable insights into trends, challenges, and strategies tailored for CIOs to lead their organizations toward a resilient supply chain.

The global supply chain landscape has undergone seismic shifts, driven by several compounding factors:

  • Geopolitical Changes: Rising tensions between major economies, such as U.S.-China relations, impact trade and supply routes.
  • War and Unrest: Conflicts, including the Russia-Ukraine war, disrupt key supply chains and essential resource flows.
  • Regulatory Impacts: Stricter regulations around data sovereignty, trade policies, and environmental standards challenge global operations.
  • Cost Dynamics: Rising inflation and volatile exchange rates place financial pressure on businesses worldwide.
  • Environmental Concerns: Heightened emphasis on sustainability requires CIOs to align IT operations with green initiatives.
  • Technology shifts: New technologies, such as automation, AI and block chain etc. enable new ways of execution.

These trends demand a rethinking of traditional supply chain models, placing CIOs at the centre of transformation efforts.

One example of the above is that global economic policy uncertainty has increased dramatically (Source: www.policyuncertainty.com). Uncertainties in US trade policies have skyrocketed during first half of 2025.

Another sign is that our dependency of China has increased over the years. In 2024, China was the third largest partner for EU exports of goods (8.3%) and the largest partner for EU imports of goods (21.3%). The trade deficit has tripled in the last 10 years. The most imported goods from China in value are telecom equipment and IT equipment. (Source: Eurostat).

Opticos CIO survey* shows that more than 50% of CIOs in larger corporations consider three risks as dominating, i.e.

  • Geopolitical tensions trade router and tariffs
  • Regulatory changes impacting import/export policies

Cybersecurity threats targeting supply chain operations

 

2. Resilient Supply Chain

In the face of mounting uncertainties, the supply chain remains a critical focal point for organizational resilience. The ability to adapt and respond to disruptions requires both strategic foresight and technological innovation. CIOs play a vital role in empowering supply chain leaders to build flexibility and mitigate risks.

Three out of four CIOs say that business requires improved visibility in the supply chain and increased need for real-time analytics data.

Challenges for supply chain responsibility

Business operations have several challenges in managing and controlling their global supply chains given the current volatile market situation. Common challenges consist of areas such as:

  • Ensuring Control and Visibility by establishing granular oversight across global supply chains to identify risks early.
  • Driving Diversification by reducing dependencies on single regions, such as China, or single vendors, by cultivating multi-sourcing strategies.
  • Increasing Flexibility by building adaptable value-chains to respond to unpredictable disturbances.
  • Provide Proactive Planning by preparing contingency frameworks for events like natural disasters, pandemics, and policy changes.

As a result, business operations put demands on IT to support them in meeting these challenges. IT Organisations most commonly responds with providing:

  • Improved Supply Chain Monitoring: Using advanced analytics tools to forecast demand, monitor supplier reliability, and optimize workflows.
  • Increased Cybersecurity: Protecting interconnected supply chain systems from escalating cyber threats.
  • Support in achieving Regulatory Compliance: Ensuring alignment with diverse regional laws around data protection and trade.
  • Introduction of “Right-fitted” Emerging Technologies: Investing in IoT, blockchain, and AI-driven tools for real-time tracking, risk assessment, and operational efficiency.

Beside demand from business, IT has its own supply chain challenges. A substantial part of IT hardware, such as laptops, mobile phones etc. are produced in China. Five of six of the major cloud providers (so called Hyperscalers) are American and one is Chinese.

These challenges affect the supply strategy for IT equipment suppliers. One Nordic example is the access switch producer Waystream who move their production from China to Lund in Sweden. The reasons behind are demands from European customers and to reduce CO2 footprint. (Source: Radar 23 April 2025).

Conclusion

Resilient supply chains depend on a synergistic approach between operational strategies and technological solutions. CIOs must drive the adoption of innovations to enable real-time visibility, risk mitigation, and sustainable performance across dynamic global networks.

 

3. CIO Actions

Three out of four CIOs say* that they will diversify supply chain regions and use multi-sourcing to mitigate risks associated with global trade.

Our survey highlighted that CIOs are increasingly moving away from fragmented ERP setups and are instead leaning towards global and hybrid strategies that balance standardization with flexibility. Supply chain diversification is also high on the agenda, with many organizations actively reducing over-reliance on China by expanding into multiple regions, especially across Asia. To address risks from ongoing global trade shifts, CIOs are prioritizing resilience through multi-sourcing and regional diversification, while also strengthening supplier partnerships and investing in technology to build more adaptive and future-ready operations.

When asking about China specifically, strategies vary. The answer in Opticos CIO Survey* on the question “Are you considering diversifying your supply chain away from China? “ can be seen below.

Regarding policy on storing and sharing information in different regions, 69% of the CIOs in Opticos CIO Survey* say that they have polies to comply with regulations (e.g., GDPR) only, while 23% say they have restrictions on storing sensitive information in some regions (e.g., China).

As the backbone of organizational agility, CIOs must lead with adaptability in the face of uncertainty. Their actions not only define IT strategy but also ensure the alignment of technology with broader business goals and resilience imperatives. There are three types of actions. We here list some examples

a) Supporting the Business
  • Data & Analytics: Leveraging big data and AI for predictive insights and smarter decision-making.
  • Technology Integration: Leading ERP and PLM strategy implementation to unify and streamline supply chain processes.
  • Risk Management Tools: Deploying solutions that assess, manage, and mitigate risks dynamically.
b) Global/Regional/Local Sourcing
  • Hardware and Solutions Procurement: Navigating sourcing strategies to ensure reliable IT infrastructure delivery.
  • Information Storage: Strategizing on cloud versus localized storage options in compliance with regional policies.
  • License Governance: Managing licensing frameworks to ensure cost-efficiency and legal adherence.
c) Resilience for Interruptions
  • Partnerships: Strengthening collaborations with technology partners for faster adaptation to disruptions.
  • Sourcing Alternatives: Exploring diversified vendor options across regions.
  • Continuity Planning: Implementing robust business continuity frameworks to safeguard IT and supply chain functions.
Conclusion

Through strategic leadership and innovative thinking, CIOs are positioned to address supply chain vulnerabilities while enabling business continuity and operational excellence. Their ability to balance global sourcing with localized resilience strategies will determine success in the new era of trade and uncertainty.

 

4. Recommendations

Recommendations for CIOs reflect the lessons learned and opportunities identified throughout this ViewPoint report. By adopting proactive strategies and leveraging technology, CIOs can transform challenges into drivers of competitive advantage.

Recommendations for the CIO
  • Analyse your supply chain to understand risks and dependencies. Use scenario planning to prepare risk mitigating actions.
  • Diversify IT Sourcing by balancing global reach with regional considerations in your IT delivery models.
  • Build Resilience by developing partnerships with suppliers while ensuring IT systems can handle interruptions.
  • Enhance Data Analytics capabilities to drive informed decision-making and uncover actionable insights across the supply chain.
  • Foster Collaboration and engage cross-functional teams to integrate IT solutions seamlessly into supply chain operations.
  • Establish cooperation with other Nordic or European industries to develop solutions for delivery of IT in challenging countries.

In navigating this transformative landscape, CIOs must embrace their role as change leaders. By combining resilience, innovation, and adaptability, they can position their organizations to thrive in the face of global uncertainties.

* Opticos CIO Survey was conducted in Q2 among CIOs in Swedish international manufacturing companies.