Supply chains across the Middle East are under growing strain as global transport and logistics operations continue to be adversly affected by a mix of geopolitical shocks, cost inflation and structural logistics bottlenecks.
According to a new study by Inverto, the procurement and supply-chain management arm of Boston Consulting Group, roughly 32% of Middle-East senior supply-chain and procurement executives now report that major logistical challenges are impacting their business operations with a notable share underscoring how risk and disruptions are no longer peripheral issues.
Key Pressures Mounting
Among the top pressures identified by the study:
Cost and inflation pressures – The report points to sharp rises in input-costs, energy, freight and raw-material prices as a major difficulty for procurement functions.
Geopolitical disruption and routing risk – The Middle East’s strategic trade-and-logistics position makes it sensitive to disruptions such as those through the Strait of Hormuz, the Suez Canal and broader regional instability.
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Supplier-network fragility and lead-time risk – Many firms report delays, difficulty securing key inputs and a need to revisit just-in-time models as uncertainty mounts.
The study emphasises that in the Middle East, “securing supply remains a board-level concern” even as firms attempt to diversify and build resilience.
Regional Nuances Matter
While global trends are driving many of these issues, the Middle East brings its own complicating factors. The region’s infrastructure investments (ports, logistics hubs) can help, but disparities remain in how well companies can leverage advanced procurement, digital visibility and risk-management tools.
The report notes that firms which lack full transparency on their supplier networks or rely heavily on single geographic or supplier sources remain vulnerable.
The study also identifies a shift in mindset: procurement leaders are increasingly viewing their role not just as cost-cutters, but as strategic partners to the business tasked with building resilience, agility and value.
What Firms are Doing
A handful of strategic responses are gaining traction:
Supplier diversification and near-sourcing: Moving sourcing closer to home or splitting volumes among more suppliers to reduce exposure.
Investing in digital-visibility tools: Platforms to map supply chains, monitor supplier risk and scenario-plan for disruptions.
Rethinking inventory and logistics models: Building in buffers or dual-sourcing to break free from overly lean models that leave firms exposed when things go wrong.
Embedding procurement earlier in strategy: Treating procurement and supply-chain risk as strategic issues needing board attention, not just operational cost items.
Looking Ahead
The study warns that the coming 12 to 24 months remain tricky. Firms that fail to elevate procurement and supply-chain management may find themselves exposed to margin erosion, service-level failures and strategic disadvantage.
For Middle-East senior executives, the takeaway is clear: treating supply-chain disruption as a one-off event is no longer sufficient. Building more robust, flexible, digitally-enabled supply chains is now a core strategic imperative and not just a back-office afterthought.
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