Building Supply Chain Resilience: How Small Businesses Can Navigate 2026’s Logistics Challenges

Almost 70% of trade professionals are prioritising supply chain management, which is nearly double the number in 2025. The pressure to manage disruptions is high for small businesses. Unlike larger corporations, many lack the massive capital reserves and diverse networks to weather economic storms.

Tariff volatility can make profitable sourcing relationships unsustainable overnight, while geopolitical instability can affect trade routes and cause delays. Today, it’s no longer a question of whether interruptions will occur, but whether the company is resilient enough to withstand them.

Critical Logistics Challenges Small Businesses Face

Various vulnerabilities can cause or contribute to supply chain disruption in small and medium-sized businesses (SMBs).

Rising Costs and Cross-Border Complexity

Gas prices can swing rapidly in just a few months. This volatility can decimate profit margins among small businesses, especially carriers that cannot easily negotiate fuel contracts. Many pay retail prices, forcing them to pass on costs and reducing profitability.

Skyrocketing freight, fuel and shipping container prices can make it more expensive to move goods, creating delays in the supply chain. To compensate, some businesses manage their inventory more tightly, increasing the risk of understocking or overstocking.

Meanwhile, U.S. tariff uncertainty is reshaping the industry. Volatile, executive-driven policies force many companies to pause investments, rapidly configure supply chains and frontload imports. The unpredictability of trade regulations has also decreased cross-border mergers and operations, with many SMBs shifting to safer domestic or diversified alternatives.

According to Purolator, a leading integrated freight, package and logistics provider, delivering packages to, from and within Canada for 65 years, over 90% of SMBs planned to outsource various logistics operations tasks. For some companies, it’s part of their supply chain strategy for managing complex processes, such as cross-border ventures. With uncertainty, recent reports show that only 54% of small business leaders feel confident enough to adapt to market changes.

Inventory and Supplier Pressures

Balancing just-in-time (JIT) efficiency with disruption buffers is crucial for SMBs. JIT minimises storage, waste and tied-up capital. However, it also makes supply chains vulnerable to delays and shortages, which creates a need for safety stock. Buffers can ensure continuity and reduce the risk of revenue-killing stockouts, absorbing demand spikes that JIT can’t handle and preventing lost sales.

Consider how 58% of businesses have been diversifying their sourcing strategies since the COVID-19 pandemic to fortify their defenses against disruption. Moreover, 47% are considering expanding their inventory to mitigate supply chain risks.

Single-source dependency centralises risk, making SMBs more susceptible to supplier, operational and financial disruptions. The consequences when the sole vendor fails to deliver can be significant, ranging from delays due to supplier failures to weakened negotiation leverage that can diminish margin.

Customer Expectations

Customers demand Amazon-level speed and transparency. Many consider free shipping and instant tracking updates as the baseline. Unfortunately, SMBs lack the massive infrastructure, automated technology and financial resources that make same-day or next-day delivery possible. This can destroy their profit margins and overwhelm limited and often manual operations.

Businesses predict that around 15.8% of their sales will be returned, but that’s not necessarily a setback. Returns management turns a traditionally costly, necessary evil into a strategic tool that builds customer trust, loyalty and brand reputation. A return option can reduce purchase hesitation, increase lifetime value, and provide insights for product improvement and inventory optimisation.

Strategies for Building Supply Chain Resilience

These logistics management practices can help SMBs reinforce their operations.

1. Diversify Logistics Network

Single-carrier dependency is a single point of failure. Building a diverse logistics network eliminates that risk, whether that involves partnering with different suppliers or subcontracting another party to cover complex areas. Here are other ways for SMBs to diversify their networks:

• Connect with two to three carriers for different shipment types.
• Prioritise providers with cross-border expertise and customs brokerage.
• Choose partners with years of experience and proven knowledge in navigating trade complexity.

2. Invest in Supply Chain Visibility

AI, IoT, blockchain and other technologies can revolutionize supply chain processes and enhance operational efficiency. They provide quantitative and actionable insights that SMBs can leverage to reduce disruption response time. Maximise these advanced logistics solutions with these tactics:

• Establish systems that provide real-time tracking visibility.
• Use supplier, warehouse and transportation data for proactive planning.
• Utilise SaaS tools for inventory and warehouse management.

3. Optimise Inventory and Returns Strategically

Implementing logistics management solutions for inventory and returns optimisation can boost cash flow, reduce costs, prevent stockouts, and increase customer satisfaction and loyalty. Here are some proven strategies:

• Work with carriers that offer integrated returns management.
• Establish minimum stock levels that automatically trigger a reorder to prevent shortages.
• Apply ABC analysis — focus on high-value A items, manage B products and reduce the time spent on low-value C stocks.

The Partnership Imperative

Supply chain cost as a percentage of sales is a critical key performance indicator. High values indicate excessive expenses and could signify inefficiencies. On the other hand, low numbers reflect effective operational efficiency. Ideal targets typically fall below 10% for most industries, which drives up the need to safeguard logistical operations.

Supply chain resilience for SMBs is nonnegotiable. Small businesses looking to gain a competitive advantage must consider these factors when assessing potential partners:

• Regulatory and tariff expertise: Partners must have experience in navigating import and export regulations, shifting trade policies and potential exemptions.
• Financial stability and creditworthiness: Consider carriers with reliable access to capital and flexible financing terms to reduce the impact of economic fluctuations.
• Technology use: Providers that utilise real-time tracking, API integration, and digital customs documentation can optimise processes with insightful data and metrics.
• Flexibility: Find shipping partners that offer multmodal options, such as courier and freight LTL or TL.

For example, SMBs that source supplies from or ship products to Canada would do well with providers that offer consolidated customs clearance for cross-border shipments. This can reduce delays, which is crucial for 2026’s trade uncertainty.

Supply Chain Resilience Is Now a Competitive Requirement

Small businesses with resilient operations will outperform those without when the next disruption hits. The earlier they start building their resilience, the stronger their defenses will be. Conducting a supply chain risk audit this quarter is a great starting point. They can also map their suppliers, evaluate their current logistics partners and invest in visibility technology. SMBs that adapt will survive trade uncertainty and thrive through it.