Key Takeaways

  • 77% of automotive suppliers say real-time supply chain notifications are extremely or very important, underscoring demand for immediate, actionable information.
  • Nearly 60% face significant challenges in the automotive supply chain and logistics management, particularly from rising transportation costs.
  • 71% of automotive suppliers are increasing investment in supply chain resilience.
  • 63% say the “ability to model supply chain impact” is the most impactful technology for building resilience.

60% of Auto Suppliers Suffer From Rising Logistics Costs

The automotive supply chain is grappling with widespread and costly disruptions. Our survey reveals that nearly 60% of automotive suppliers face significant negative impacts from rising logistics and transportation costs, alongside a common shortage of skilled labor.

Raw material price volatility and shortages also stand out as major concerns, impacting nearly half of respondents. This dual pressure creates a squeeze on operational efficiency and financial margins, directly influencing vehicle availability and cost for consumers worldwide.

Suppliers are actively responding with strategic pivots, signaling an urgent need for new approaches, including:

  • Re-evaluating sourcing locations
  • Exploring near-shoring or friend-shoring initiatives
  • Investing in automation to offset labor gaps

More Than 3 in 4 Suppliers Prioritize Real-Time Supply Chain Data

The automotive industry isn't just reacting to unprecedented global disruptions; it's making a strategic bet on the future. Our survey reveals a powerful shift: 71% of automotive suppliers are actively increasing their commitment to supply chain resilience strategies. This signals a collective understanding that robust, adaptable supply chains are essential for survival and growth.

This proactive stance becomes even clearer in the overwhelming demand for immediate, actionable information. More than 77% of respondents deem real-time notifications of relevant events “extremely” (38%) or “very” (40%) important. This strong consensus underscores that for these companies, having clear, real-time information about their supply chain operations has become mission-critical.

“The demand for real-time supply chain alerts comes down to one thing: decision-making. You can’t manage what you can’t see, and slow information leads to slow reactions. The companies that succeed will be the ones that close the gap between risk signals and action across their global operations.”
— Mike Prorock, Founder & CEO of Tradeverifyd

Despite Investment, Key Barriers Hinder Auto Supply Chain Resilience

Despite massive investment in resilience strategies, automotive suppliers face significant, often fundamental, execution hurdles that threaten to undermine their best efforts. Survey respondents identified a “lack of standardized processes or platforms across partners” as the most significant barrier to achieving true supply chain resilience.

Many suppliers adopt new digital tools primarily for:

  • Improving operational efficiency (59%)
  • Reducing costs (54%)
  • Gaining competitive advantage (50%)

These standardization issues often prevent them from achieving their full potential for resilience. Without a unified approach to data exchange and operational protocols, efforts to enhance visibility and responsiveness constantly hit obstacles, leaving supply chains vulnerable to the very disruptions they're trying to prevent.

63% Prioritize Impact Modeling: Auto's Future-Proofing Tech

Looking ahead, automotive suppliers are eager for sophisticated technological solutions that transform supply chain risk management in the automotive industry from reactive crisis response to proactive mitigation.

A significant 63% of suppliers believe the “ability to model supply chain impact” will be the most transformative technology for enhancing resilience over the next three to five years. This shift allows them to move from simply reacting to disruptions to proactively preventing costly shutdowns and optimizing operations.

43.5% Uncertain: The Blind Spot in Tier 2/3 Visibility

This challenge is further complicated by limited visibility deeper into the supply chain. Nearly 43.5% of automotive suppliers are only “moderately confident” in their Tier 2 and Tier 3 suppliers' ability to meet demand and quality expectations.

Bridging these gaps is where advanced solutions become essential. Platforms like Tradeverifyd offer the precise tools needed to gain clarity into these complex, multi-tier networks.

“Automotive companies lacking deep visibility into their sub-tier suppliers and the predictive tools to anticipate risk are effectively flying blind in a regulatory and geopolitical environment that demands clarity. Without foresight into where parts and materials originate, how they move, and who touches them, companies are vulnerable to expensive sourcing violations, reputational damage, and serious disruptions.” — Karyl Fowler, Chief Policy Officer at Tradeverifyd

What These Results Mean for Automotive Leaders

The survey insights paint a clear picture: The automotive industry supply chain faces critical challenges, but also a strong drive for resilience and real-time visibility. Old, reactive approaches are no longer enough.

“In a global, multi-tier supply chain, uncertainty is constant. The difference between reacting and leading comes down to visibility and technology. Automotive executives need tools that don’t just identify risks, but provide clarity, predict consequences, and support decisive action.” — Mike Prorock, Founder & CEO of Tradeverifyd

For leaders, the path forward is clear. Prioritize true end-to-end visibility and embrace robust predictive tools. Tackle core barriers like a lack of standardization and invest in solutions that build smooth collaboration across multi-tier partners. This shift turns vulnerabilities into strategic strengths, moving companies from reacting to proactively managing risks.

‍ Future-Proof Your Auto Supply Chain with Tradeverifyd

Success in automotive supply chain management depends on strong data and smart platforms that provide real-time information and close visibility gaps with your sub-tier suppliers. Tradeverifyd understands these challenges. We offer complete solutions to boost transparency, improve prediction accuracy, and make collaboration across your entire network easier.

Ready to build a resilient supply chain with unmatched end-to-end visibility and insight? Discover what Tradeverifyd can do for you.

‍ Methodology

The survey was conducted by Centiment Audience for Tradeverifyd and fielded on June 4, 2025. Results are based on 322 completed surveys. To qualify, respondents had to be U.S. residents over the age of 18. All participants held roles or responsibilities related to supply chain or logistics within the automotive industry.