CIPS Warns of Rising Supply Risks for Global Healthcare

The Q2 2025 CIPS Pulse Survey, collecting insights from procurement professionals, shows a significant rise in concerns over short and long-term supply chain disruptions.

Concerns have peaked since CIPS started tracking, due to instability in the Middle East and new US tariff policies.

Sectors like fuel, food and shipping are facing multiple risks and price surges, affecting suppliers and consumers universally.

Record-high concerns

CIPS gathers input from 200 senior supply chain and procurement leaders worldwide, experienced in fields such as healthcare, banking, manufacturing and government.

The survey rates concerns from 1 to 7, helping to record opinion changes.

The initial survey of the year, conducted in March, involved leaders knowledgeable about sourcing and expenses. Issues have intensified between surveys, influenced by ongoing geopolitical changes.

Dr John Glen, CIPS Economist, says: “This pulse check clearly indicates the impact of escalating tariffs globally and increased geopolitical tension in the Middle East on procurement managers’ perception of supply chain risk.

“The volatility and uncertainty which has permeated global supply chains is providing unprecedented, in recent times, challenges to procurement professionals.”

Short-term concerns, assessed over three months, score an average of 4.57 out of 7, up from Q1's 4.36, marking the highest recorded result.

Long-term concerns for a 12-month period rise, with an average score of 5.03, compared to the Q1 score of 4.91.

Ben Farrell, CEO of CIPS, adds: “Global procurement leaders are operating in uncharted waters. Between geopolitical shocks, tariff upheaval, and ongoing price volatility, we’re seeing levels of anxiety we’ve never recorded before. 

“It’s no longer a question of ‘if’ disruption happens, it's about preparing for when and where.”

Prices set to rise

Input prices are anticipated to increase, with five spending areas predicting rises above 10%.

In Q1, only three categories exceeded the 10% concern threshold.

John adds: “The fact that significant price increases are now appearing in multiple channels within supply chains will put additional pressure on organisations to increase final prices to consumers. 

“This in turn may inhibit the ability of central banks to reduce interest rates in the short term and in doing so inhibit central bank’s ability to stimulate insipid levels of economic growth in Europe and the UK.”

Rising input costs will likely elevate consumer expenses.

Shipping inflation affects all products and industries, meaning higher costs for goods from furniture to food.

Fuel costs to heat and transport will also spike, while increased food expenses risk elevating grocery prices significantly.

Elevated costs and potential availability challenges may strike across medicines and chemicals, leading to possible healthcare issues.

Ben says: “We are entering a new era of supply chain risk, where political decisions thousands of miles away directly raise prices at the checkout. 

“From shipping lanes to silicon chips, no category is safe from disruption. Procurement professionals are the economy’s early warning system and this quarter; the alarms are blaring.”

Confidence concerns

The survey prompts respondents to pinpoint causes of supply shortages, with 53% attributing them to geopolitical reasons and 36% citing US-China trade disagreements as key contributors.

Between Q1 and Q2 responses, inflation concern falls from 59% to 41%, revealing that procurement leaders are tackling risks beyond mere price increases.

Though procurement leaders strive to mitigate these risks by increasing supplier diversity and insourcing, apprehensions overshadow confidence.

With continually rising tariffs and persistent conflicts, global supply chains must evolve to manage uncertainty.