China lead-time concerns surge as shippers widen global sourcing networks

Supply chain disruptions are becoming increasingly complex for small and midsize businesses (SMBs) as they spread their sourcing networks globally and place orders earlier, according to Netstock's 2026 Supply Chain Planning Benchmark Report. The report, based on surveys of over 2,500 customers worldwide and 150 SMBs with less than $250 million in annual revenue, reveals that supplier lead-time swings are the biggest inventory planning challenge at 29%, followed by raw material costs at 23%, freight and shipping costs at 22%, and demand shifts at 21%.

While tariffs were previously a dominant concern, supplier timing and freight routes have emerged as the top three challenges for 77% and 72% of respondents, respectively. This shift from isolated volatility to "supply chain chaos" suggests that the challenges facing SMBs are becoming more intricate. With a larger number of suppliers and freight lanes, businesses are navigating a more complicated web of lead times, costs, and shipment patterns across ocean, air, trucking, and intermodal networks.

China remains a significant component of these sourcing networks, but businesses relying on Chinese suppliers reported a significant deterioration in lead-time conditions. While tariffs have not led to rapid supplier switching, the increased diversification of SMB sourcing has created additional complexity through more suppliers, lead times, and freight routes.

This shift could potentially result in more fragmented freight demand as smaller businesses grapple with the challenges of managing multiple supplier regions and shifting purchase orders between countries.