--- title: The Cost of Disruption description: Discover how proactive compliance reduces disruption costs and strengthens supply chain resilience. image: https://blog.sourceintelligence.com/hubfs/Cost%20of%20Disruption%20featured%20image.jpg --- ![shape background](https://blog.sourceintelligence.com/hubfs/raw_assets/public/Sourceintelligence_April2024/images/headertop.png) [ChainPoint and Compliance Map are now part of Source Intelligence](https://blog.sourceintelligence.com/tag/news) - [Source Academy](https://academy.sourceintelligence.com/?_gl=1*1gjeg4j*_ga*MTEwNzA5MDU1MS4xNzEzMzI4MDE3*_ga_X53KHMS0FW*MTcxMzMyODAxNy4xLjEuMTcxMzMzMzAyMS40OC4wLjA.) - [Careers](https://www.sourceintelligence.com/careers) - [Events](https://www.sourceintelligence.com/events) - [Contact](https://www.sourceintelligence.com/contact) - Log in - [Source Intelligence login](https://app.sourceintelligence.com/portico/?_gl=1*1obc0zd*_ga*MTEwNzA5MDU1MS4xNzEzMzI4MDE3*_ga_X53KHMS0FW*MTcxMzMyODAxNy4xLjEuMTcxMzMzMzAyMS40OC4wLjA.#/) - 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[Medical Devices](https://www.sourceintelligence.com/medical-device-manufacturing) - [Retail & Consumer Packaged Goods](https://www.sourceintelligence.com/retail-consumer-packaged-goods) - [Standards & Sector Initiatives](https://www.sourceintelligence.com/chainpoint-solutions) - [Resource center](https://blog.sourceintelligence.com) - [Careers](https://www.sourceintelligence.com/careers) - [Contact](https://www.sourceintelligence.com/contact) - [Source Academy](https://academy.sourceintelligence.com) - Log in - [Source Intelligence login](https://app.sourceintelligence.com/portico) - [Q-STAR login](https://qstar.qtec.us/Login/UserLogin.aspx) - [CMM login](https://profile.totalpartsplus.com/#/login) - [Parts Plus login](https://www.totalpartsplus.com/pp/login.asp) [Schedule a demo](https://www.sourceintelligence.com/schedule-a-demo) ![](https://blog.sourceintelligence.com/hubfs/Cost%20of%20Disruption%20featured%20image.jpg) # The Cost of Disruption Published by [Source Intelligence](https://blog.sourceintelligence.com/author/source-intelligence) on November 12, 2025 at 8:15 AM ## Building resilient supply chains > [Download the guide](https://blog.sourceintelligence.com/the-cost-of-disruption#download-disruption-guide) to understand the true cost of supply chain disruption—and how leading manufacturers are building resilience. > > Learn how proactive compliance and smarter automation help companies reduce financial exposure, close regulatory gaps, and protect business continuity. Explore real-world data on the impact of disruptions and discover how to futureproof your supply chain against rising global risks. ## The case for resilient supply chains Supply chain disruption is the top risk for manufacturers, jeopardizing profitability, market access, and consumer trust. Regulatory changes, global trade restrictions, and component delays are just a few of the disruptors threatening supply chains today. As supply networks grow more interconnected and regulations become increasingly complex, manufacturers face mounting pressure to adapt.  Proactive compliance with new laws and standards is no longer optional—it’s essential to reduce risks and protect business continuity. Yet, 40% of supply chain professionals report concern about maintaining resilience under emerging regulations ([BCI](https://www.thebci.org/news/supply-chain-disruptions-drive-increased-tier-mapping-and-insurance-uptake.html)). The key to navigating this volatile landscape lies in building a resilient supply chain, supported by the right technologies to enhance visibility, streamline compliance, and prepare for future challenges.  ## Revealing supply chain compliance vulnerabilities The[fifth annual McKinsey Global Supply Chain Leader Survey](https://www.mckinsey.com/capabilities/operations/our-insights/supply-chain-risk-survey) provides a revealing look at the state of today’s supply networks. Conducted from April to June 2024, the survey captured insights from 88 senior supply executives across a variety of industries and geographies. The findings paint a concerning picture for manufacturers navigating regulatory challenges:  90% of surveyed companies faced supply chain issues in 2024.  30% of companies admit they are behind or significantly behind in their compliance efforts for new regulations.  **Only** **9%** of organizations report their supply chains are fully compliant with environmental and human rights standards.  These statistics highlight the urgent need for manufacturers to close compliance gaps and adopt technology-driven solutions to build resilience.  ## The staggering cost of supply chain disruption > *“Over the course of a decade, the average company can expect to lose nearly half of one year’s profits from supply chain disruptions.”* > > – [McKinsey Global Institute](https://www.mckinsey.com/mgi/media-center/building-national-supply-chain-resilience) Supply chain disruptions carry profound financial consequences, with costs rippling through organizations and compounding over time. In 2023, over 50% of organizations reported rising supply chain costs due to disruptions, with more than a quarter facing significant financial losses tied to Tier 1 supplier issues ([BCI](https://www.thebci.org/news/supply-chain-disruptions-drive-increased-tier-mapping-and-insurance-uptake.html)).  - The EU’s proposed PFAS restrictions could put over $175 billion in U.S.-EU trade at risk, impacting key industries like healthcare ($43.8B) and electronics ($28.9B) ([U.S. Chamber of Commerce](https://www.uschamber.com/assets/documents/Impacts-of-PFAS-Restriction-on-Trade-Between-the-U.S.-and-the-European-Union_9.25.2023.pdf)). - Uyghur Forced Labor Prevention Act enforcement has stopped over 10,000 shipments at the U.S. border since 2022, valued at more than $3.5 billion ([U.S. Customs and Border Protection](https://www.cbp.gov/newsroom/stats/trade/uyghur-forced-labor-prevention-act-statistics)). - Component obsolescence drives an estimated $50 to $70 billion in nonrecurring design and engineering costs for the aerospace and defense industry ([McKinsey](https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/how-industrial-and-aerospace-and-defense-oems-can-win-the-obsolescence-challenge)). Addressing these challenges requires proactive strategies and advanced solutions to minimize risks and strengthen supply chain resilience.  ## Keep reading: Download the guide ### About the author #### Source Intelligence ![Source Intelligence](https://blog.sourceintelligence.com/hs-fs/hubfs/Icon_Logo%20(1).png?width=165&height=182&name=Icon_Logo%20(1).png) [Source Intelligence](https://www.linkedin.com/company/source-intelligence) is a leading provider of supply chain compliance software. It helps global manufacturers manage product compliance, responsible sourcing, and risk across complex supply chains. Its AI-powered, configurable SaaS platform connects supplier, product, and regulatory data to identify risk at the product, component, and material level. This delivers precise, defensible insights that support faster, more confident compliance decisions.   --- Tags: [E-Books & Guides](https://blog.sourceintelligence.com/tag/e-books-guides) [Back to Blog](https://blog.sourceintelligence.com) ## Related Articles ## [What is Conflict Minerals Compliance?](https://blog.sourceintelligence.com/what-conflict-minerals-compliance) Conflict minerals compliance is the process of conducting mandatory due diligence to identify the... [Read More](https://blog.sourceintelligence.com/what-conflict-minerals-compliance) ## [What is Section 1502 of the U.S. Dodd-Frank Act?](https://blog.sourceintelligence.com/blog/what-is-section-1502-of-the-us-dodd-frank-act) Section 1502 of the United States (U.S.) Dodd-Frank Act requires certain companies to disclose... [Read More](https://blog.sourceintelligence.com/blog/what-is-section-1502-of-the-us-dodd-frank-act) ## [EU Conflict Minerals Regulation vs. U.S. Dodd-Frank Act Section 1502](https://blog.sourceintelligence.com/blog/eu-conflict-minerals-vs-us-dodd-frank-act-section-1502) Tin, tungsten, tantalum, and gold are essential minerals used in several products, such as... 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