2024 in Review: Building Smarter, Resilient Supply Chains for 2025

In 2024, supply chain disruptions tested businesses across Canada like never before. From labor strikes and infrastructure breakdowns to severe weather events and rising costs, logistics challenges took a toll on companies both big and small. E-commerce businesses, in particular, bore the brunt of these disruptions.

While the challenges were significant, they also revealed opportunities for improvement. As we move toward 2025, building a resilient supply chain is no longer optional—it’s essential for survival and success.

Let’s start by understanding what supply chain resilience truly means and why it’s crucial in today’s business landscape.

What is supply chain resilience?

Supply chain resilience is all about being prepared for the unexpected. It’s the ability of a supply chain to anticipate, respond to, and recover from disruptions while minimizing their impact. Think of it as a tool kit that helps businesses adapt to challenges such as global crises, market changes, or shifting customer demands. This involves quick problem-solving, data-driven strategies, and proactive planning to stay ahead.

Modern supply chain resilience goes beyond traditional risk management, focusing on adaptability. Key approaches include:

• Engineering resilience: Treating supply chains as systems that can be optimized and controlled.
• Socio-ecological resilience: Recognizing the importance of human decision-making and collaboration in making supply chains flexible.

Core strategies involve adding backups, collaborating with stakeholders, and planning for fluctuating demand. Resilience is not just about bouncing back; it’s about growing stronger and being ready for future challenges.

Let’s examine the major disruptions of 2024, the lessons they taught us, and actionable strategies to build a smarter, more resilient supply chain in 2025.

Key disruptions in 2024 that impacted logistics

Labor strikes at Canadian ports

Disruption Type	Details
West Coast strike	Ports affected: Vancouver, Prince RupertStart date: November 1, 2024 Impacts:– Port operations halted- Rail and trucking bottlenecks, disrupting goods movement across western Canada and into the U.S.- Rail embargo imposed by Canadian Pacific Kansas City (CPKC) and Canadian National Railway (CN) with restricted traffic via a permit system.
East Coast strike	Ports affected: Port Montréal – Viau, Maisonneuve, Racine, and Cast TerminalsStart date: October 31, 2024 Impacts:– Terminal operations disrupted- Delays impacted U.S. Midwest supply chains- CN suspended operations at Cast and Racine terminals.
Canada Post strike	Involved parties: Over 55,000 Canadian Union of Postal Workers (CUPW) workersStart date: November 15, 2024 Impacts:– Mail and parcel delivery delays of weeks- Backlog of a couple million parcels, disrupting e-commerce business operations during the holiday shopping season- Shipping costs increased as businesses adopted alternative delivery methods.- $1.6 billion loss for SMBs

Extreme weather events in Canada

Weather event	Details
Wildfires in British Columbia	Incident: Highway closures for over 10 daysTime: July 2024 Impacts:– Severe delays in trucking and rail shipments- Increased fuel expenses.
Flooding in Quebec	Incident: Widespread flooding disrupted routesTime: August 2024 Impacts:– Local delivery delays of 3-5 days- Shipment rerouting disrupted truckload and rail services.
Broader supply chain impacts
Analysis:Extreme weather events have posed significant operational challenges for Canadian businesses, leading to increased shipping delays and rising costs. Climate change amplifies these risks, with events like wildfires, floods, and heat domes intensifying. These disruptions are projected to cost Canada $25 billion in 2025—equivalent to half of the country’s GDP growth. Alarmingly, 92% of business leaders anticipate such disruptions becoming a regular occurrence, underscoring the urgent need for resilient and adaptive strategies in the face of a changing climate.
Vulnerabilities in last-mile delivery
Impact on e-commerce:Just-in-time models: E-commerce businesses relying on these models were particularly affected.Exposed weaknesses: Delays highlighted vulnerabilities in last-mile delivery networks.Call for resilience: Need for robust systems to mitigate climate-related risks.

Rising transportation costs in Canada

Cost Driver	Details
Fuel prices	Incident: Global shipping costs surged in Q1 2024 Impacts:– Increased transportation expenses- Businesses are pressured to adjust budgets and strategies.
Driver shortages	Incident: Increased shipping requests due to labor disputes Impacts:– Capacity strains and shipment delays- Demand spikes exposed transportation gaps.
Impact on small businesses
Financial strain	Rising shipping expenses forced small businesses to either raise prices or absorb costs.Profit margins: Reduced profitability, especially during the Canada Post strike.Consumer costs: Higher prices for end customers.
Operational adjustments	Businesses adopted alternative delivery solutions, such as local pickups and private couriers.Flexibility: Mitigated some disruptions but incurred additional fees, leaving minimal profit.Case Example: Small businesses used services like Amazon or introduce local pickups to fulfill orders.

The challenges of 2024 emphasized the importance of resilience in logistics operations. From advanced technologies to diversified delivery methods, businesses are exploring innovative solutions to navigate Canada’s evolving supply chain landscape.

Essential lessons for e-commerce growth in 2025

The disruptions of 2024—including labor strikes, extreme weather events, and rising transportation costs—revealed critical vulnerabilities in e-commerce supply chains, significantly impacting businesses across Canada. By addressing these challenges proactively, businesses can strengthen their operations and build more resilient supply chains.

Diversify fulfillment and distribution centers

Over-reliance on a single distribution hub leaves businesses vulnerable to disruptions. Diversifying fulfillment operations emerged as a key strategy for resilience.

Actions to take:

• Use regional fulfillment centers to distribute inventory closer to customers.
• Partner with 3PL providers like Ecom Logistics to gain flexibility in warehousing and fulfillment.
• Leverage micro-fulfillment centers in urban areas to speed up last-mile delivery.

Decentralized operations reduce disruption risks and improve delivery timelines.

Strengthen contingency plans for delivery networks

Robust contingency plans are vital to deal with labor disputes, extreme weather, or infrastructure breakdowns effectively.

Actions to take:

• Partner with multiple carriers to avoid over-reliance on a single provider.
• Collaborate with regional carriers like Ecom Express for localized expertise.
• Develop alternative delivery routes and networks to adapt quickly during disruptions.
• Invest in route optimization software to identify the most efficient paths in real time.

By diversifying carriers and leveraging technology, businesses can remain agile in the face of unexpected events.

Leverage technology for operational efficiency

Last-mile delivery remains a costly and challenging aspect of the supply chain. The disruptions of 2024 underscored the need for innovative, tech-driven solutions.

Actions to take:

• Partner with carriers using AI-powered delivery systems to predict delays and reroute shipments efficiently.
• Adopt real-time tracking and visibility tools to keep customers informed and reduce failed deliveries.
• Explore crowdsourced delivery solutions to supplement traditional carriers during peak periods.

Technology-driven solutions enhance delivery performance and provide a competitive edge with faster, more efficient last-mile services.

Improve supply chain visibility.

Limited real-time tracking data in 2024 created significant challenges in managing customer expectations. Advanced tracking solutions are now indispensable for supply chain success.

Actions to take:

• Implement end-to-end visibility tools for real-time shipment updates.
• Use IoT (Internet of Things) devices to monitor inventory movement and environmental conditions during transit.
• Integrate tracking software with customer platforms for accurate delivery estimates.

Enhanced visibility fosters customer trust and ensures smoother operations.

Adapt sustainable logistics solutions

Rising transportation costs and climate-related disruptions make sustainability a business imperative. Adopting eco-friendly practices benefits both the planet and the bottom line.

Actions to take:

• Partner with carriers using electric vehicles (EVs) to lower emissions and support sustainability goals.
• Opt for eco-friendly packaging to minimize waste and appeal to environmentally conscious customers.
• Consolidate shipments to reduce trips and improve delivery efficiency.

Sustainable practices help businesses create a greener supply chain while meeting customer expectations for environmental responsibility.

Conduct regular risk assessments

Proactive risk management is essential to identify vulnerabilities and prepare for potential challenges. Scenario planning and stress testing enable businesses to anticipate and adapt to disruptions.

Actions to take:

• Perform regular risk assessments to uncover potential vulnerabilities in supply chain operations.
• Use scenario modeling tools to simulate various disruptions and develop response strategies.
• Conduct stress tests to evaluate the robustness of supply chain systems under different scenarios.

These practices enhance operational resilience and ensure continuity during crises.

Build financial resilience

Supply chain disruptions often lead to unexpected expenses. Strategic financial planning can help businesses absorb these costs while maintaining stability.

Actions to take:

• Maintain buffer inventories for critical goods by allocating funds for emergency supplies.
• Explore insurance options to cover shipment delays and revenue losses.
• Set aside contingency funds and work with financial partners to secure flexible credit solutions.

Financial resilience safeguards profitability and ensures smooth operations during disruptions.

Foster communication and collaboration

Effective communication and strong partnerships across the supply chain are key to navigating challenges. Transparent collaboration enables quick, cohesive responses during disruptions.

Actions to take:

• Maintain open communication with suppliers and logistics partners to address challenges collaboratively.
• Use digital platforms like real-time supply chain dashboards for information sharing and progress monitoring.
• Build strong relationships with suppliers to enhance agility and mutual support during crises.

By prioritizing collaboration, businesses can create a well-coordinated and resilient supply chain.

Conclusion: Shaping a resilient future for Canadian supply chains

The disruptions of 2024 revealed the vulnerabilities in supply chains, but they also presented opportunities for businesses to adapt and build resilience. By diversifying fulfillment operations, strengthening logistics flexibility, embracing technology, and prioritizing proactive risk management, Canadian businesses can ensure they are prepared for the challenges ahead.

The key is to take proactive measures—anticipating disruptions, improving operational agility, and enhancing customer communication. By doing so, businesses can not only survive but thrive in an increasingly unpredictable world.

As we move into 2025, the question isn’t whether disruptions will happen—it’s how prepared you’ll be to handle them.

About Ecom Logistics

Ecom Logistics is a leading third-party logistics (3PL) provider in Canada, specializing in innovative and sustainable solutions tailored for e-commerce businesses. With a robust network and advanced technology, we deliver seamless logistics support to businesses of all sizes, helping them navigate the complexities of modern supply chain management.

What we offer:

• End-to-end fulfillment services: From inventory management and warehousing to order processing, we provide seamless solutions to ensure timely and accurate deliveries. Our network of multiple carriers allows us to offer flexibility and reliability for your logistics needs.
• Last-mile delivery excellence: Offering same-day and next-day delivery options, we utilize a large fleet of vehicles, including electric vehicles (EVs), supported by real-time tracking for dependable and efficient service.
• Sustainability at the core: Aligned with our #NetZero2030 commitment, we’re driving eco-friendly logistics strategies, incorporating EVs, and adopting green practices to build a sustainable future.

Why choose Ecom Logistics?

• Technology-driven solutions: Our advanced Warehouse Management System (WMS) and proof-of-delivery features ensure operational efficiency, transparency, and precision.
• Tailored to your needs: With flexible, adaptable solutions, we collaborate closely with your business to align with your unique goals and requirements.
• Customer-centric approach: Our dedicated team and innovative strategies are designed to empower businesses, enhance operations, and elevate customer satisfaction.

Is your business ready for 2025? Contact us today to build resilience for the future with us!