The COVID-19 pandemic marked the beginning of a period of global supply chain instability. Though lockdown restrictions have been lifted and borders reopened, Nordic supply chains are not yet out of the woods. Still, as we move forward into 2023 and beyond, businesses have the chance to embrace change and seize opportunities for advancement in the Nordics. By proactively responding to the evolving landscape, we can foster resilience and create stronger, more agile supply chains that will thrive in the region. 

The impact of supply chain disruption

Supply chain challenges can impede the normal flow of goods, materials, and spare parts. As a result, businesses suffer inventory problems, service disruption, reputational damage, and lost revenue. The good news is that these supply chain challenges also present opportunities for businesses to set themselves apart from the competition. This article explores current supply chain challenges in the Nordics, and how they can be leveraged to achieve a competitive edge. 

What’s causing supply chain challenges in the Nordics?

Many factors affect the flow of raw materials, goods, and spare parts, and they’re often interconnected. Here are some of the current issues driving the need for greater supply chain resilience in the Nordics: 

1) Sustainability

Nordic countries, known for their strong commitment to sustainability, are among those leading the global fight against climate change. Higher sustainability standards and strict environmental regulations place additional compliance burdens on supply chains operating across the region. 

Companies operating within these regions are under pressure to reduce Scope 3 emissions throughout the supply chain, through measures such as better inventory management and transport route optimisation. Failure to do so could result in fines, sanctions, and loss of business. 

2) The Russia-Ukraine conflict

Geopolitical tensions have always led to international supply chain disruptions, due to economic sanctions, trade restrictions, and other factors affecting the movement of people, resources, and goods.  

Russia’s invasion of Ukraine has severely impacted Nordic supply chains and will continue to do so until the conflict ends. Companies in Finland and Sweden are among those most affected, as these countries have significant trade and investment ties with Russia. The manufacturing, machinery, and automotive industries have been hit the hardest; this is due to difficulties importing essential raw materials – like aluminium, nickel and palladium, as well as component parts from both Russia and Ukraine. Palladium shortages and price-hikes have already had a major impact on automotive manufacturers, according to Automotive News Europe. 

3) Cyber Security

The European Union Agency for Cyber Security (ENISA) have stated that previously sufficient cybersecurity measures may no longer be enough to protect organisations, as attackers shift their attention to supply chains. Supply chains involve multiple entities, systems, and data exchanges, which add up to numerous points of entry for attackers to exploit. These points of entry are becoming even more vulnerable because of digital transformation; organisations are adopting new technologies like cloud services, AI, and Internet of Things (IoT) devices, faster – in some cases - than they’re updating their cyber security practices. 

If a vendor or logistics provider falls victim to a cyber-attack, they would be unable to continue normal operations, and the entire downstream supply chain would be affected by delays and increased costs. 

Turning supply chain challenges into an opportunity for growth