Supply chains emerge as critical constraint on global expansion for businesses

As international growth remains a top strategic priority for C-suite leaders and their organisations worldwide, supply chains are rapidly becoming one of the decisive factors in whether international expansion succeeds. With that, businesses are confronted with rising regulatory complexity and sustainability scrutiny alongside unprecedented levels of trade disruption.

Explore Growing global: strengthening a global supply chain

Key findings

• International expansion remains a strategic priority for organisations: a majority (83%) plan to enter at least one new market in the next five years. Over half (51%) have added extra target countries to their expansion plans in the last 12 months and 45% have changed target destinations for expansion.
• Regulatory compliance remains the top challenge when establishing operations in new countries: 39% of leaders agree this is a bigger challenge than cost issues from trade and tariff changes, talent scarcity in local markets and geopolitical instability.
• Transparency and reporting requirements are now viewed as beneficial not burdensome: nearly half (48%) of C-suite leaders confirm increased transparency and reporting requirements have had the most positive impact on supply chain management, followed by enhanced supplier training programmes (40%) and stricter supplier guidelines (39%).
• Disruption and trade friction are now structural features of global supply chains: 72% of organisations confirm they’ve had to adapt their business strategy as a result of trade and tariff changes in the last 12 months – a critical component to entering new markets and long-term expansion plans. 
• Technology capability is proving critical to scale: 41% of C-suite leaders are prioritising investment in their supply chain with the integration of new technologies. 

Findings from Forvis Mazars’ third edition of its Growing global report indicate that global expansion remains firmly on boardroom agendas, but the conditions under which companies pursue cross border growth have fundamentally changed and have significant repercussions on already fragile global supply chains. Assumptions about frictionless trade and cost optimised global sourcing are giving way to a more fragmented environment, shaped by geopolitical risk, tariff volatility and divergent regulatory regimes.

Laurent Caporossi, Partner and Supply Chain Lead of Forvis Mazars in France, commented: “Global expansion plans are no longer determined by ambition or capital alone. What increasingly determines success is whether a business has a supply chain that can operate under sustained regulatory pressure, trade disruption and scrutiny from multiple jurisdictions at once. Supply chain decisions are moving earlier in the expansion lifecycle, rather than being treated as postentry operational matters. Companies that approach supply chain as a strategic capability, rather than an operational afterthought, are far better placed to scale with confidence in today’s environment and long-term, but to achieve this, leaders need to recognise that compliance, transparency and technology are now inseparable from supply chain design.”

Compliance reshapes expansion strategy

One of the most striking findings in the report is the central role compliance now plays in determining international expansion outcomes. Managing local laws, tax rules, sustainability mandates and data requirements has emerged as the most frequently cited challenge when entering new markets – one that directly influences how supply chains are designed and governed from the outset.

Transparency becomes a strategic asset

Forvis Mazars’ analysis also points to a systemic shift in how businesses view transparency and reporting. While sustainability regulation has significantly increased disclosure obligations, nearly half of organisations say enhanced transparency has had the most positive impact on supply chain management.

According to Caporossi: “Greater visibility into suppliers, sourcing locations and production processes is helping companies identify hidden risks, improve oversight and respond more quickly to an unprecedented scale of international disruption. For global businesses, traceability is increasingly seen as a tool for strengthening resilience and control, not solely as a compliance exercise. This shift reflects a growing recognition that transparency ultimately reflects trust with regulators, customers and investors, while also providing management teams with better data to support strategic decisions.”

Disruption becomes the norm

Trade and tariff volatility is no longer viewed as cyclical. More than a third of organisations identify trade and tariff changes as a major barrier when entering new markets, with a majority reporting that disruption has already forced changes to operating models in the last year.

In response, supply chains are being re‑engineered to cope with sustained uncertainty. Businesses are diversifying expansion plan (and therefore suppliers) exploring regionalisation and re‑shoring strategies, and reassessing dependencies on single geographies. The result is a move away from maximising cost efficiency alone towards building sustainable supply chains that can absorb shocks without compromising growth plans.

Technology underpins scalable growth

Technology capability is now a defining factor in whether organisations can manage supply chain complexity at scale. Legacy systems, fragmented datasets and manual processes are limiting visibility at precisely the moment when regulatory, operational and reporting demands are accelerating.

Forvis Mazars’ analysis shows that robust digital infrastructure is increasingly essential to managing compliance, monitoring performance and maintaining control across borders. Without it, companies will struggle to coordinate supply chains effectively as they expand into multiple jurisdictions.

A leadership issue, not an operational one

Taken together, the findings suggest a clear shift: supply chains have moved from the operational back office into the strategic centre of global growth decisions. Global expansion remains an essential path to growth, but it is supply chain capability, not strategic plans or ambition alone, that will determine who can scale confidently in today’s environment for long-term success.

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Rosa Mejia Banks, Group PR and Content Officer 
Rosa.Mejia-Banks@mazars.co.uk / +44 (0) 20 7063 4934