Resilient supply chains: strategies for US trade tariffs

From pandemics to political turbulence, the last few years have highlighted the fragility of global networks and the urgent need for a more robust approach to supply chain design. Donald Trump’s import tariffs on trade from the UK, China, and other nations have forced the hands of business owners to look at new strategies for ensuring manufacturing and logistics resilience.

Join us as we look at what supply chain resilience looks like and how the industry as a whole

Why resilience now?

The frequency of supply chain disruptions has changed dramatically. Events like the pandemic, Brexit, the war in Ukraine, and Trump’s tariffs have pushed companies to rethink risk preparedness. One McKinsey global survey found that 95% of supply chain leaders experienced disruption in the previous year, with many re-evaluating their supply chain strategies as a result.

This approach has been accelerated by what the Forbes Tech Council explains as an “era of exponential risk,” where complexity and global interdependence increase exposure to disruption.

This has led to resilience becoming the watchword for supply chains as businesses want to show their customers and clients that they can be relied on despite the whims of global events.

Four strategies to build supply chain resilience

1. Diversify supply sources

Relying on a single source or supplier carries significant risk. Especially if that region is subject to new tariffs or harmful events. Some in the supply chain have turned to diversifying their supply sources through practices like nearshoring, reshoring and multi-sourcing strategies to mitigate this. The McKinsey survey supports this trend, stating;

“Supply chain footprints are evolving, with 73 per cent of survey respondents reporting progress on dual-sourcing strategies. Additionally, 60 per cent of respondents are acting to regionalise their supply chains.”

Doing so allows businesses to spread exposure and create contingency options when faced with disruption.

2. Embrace technology

We’ve also seen technology take a massive leap with the rise of generative AI and smarter automations. This, alongside practices like digital twins, real-time analytics, and more intelligent predictive analytics, is another avenue for businesses to build resilience and find solutions to problems before they arise. Two-thirds of survey respondents support this and are “...making progress in the implementation of advanced-planning and -scheduling (APS) systems.”

You can find out more about AI, digital twins, and other technologies in our article here.

3. Strengthen supplier relationships

While suppliers and technology are certainly areas to improve, there are also soft skills and relationship management. The supply chain relies on people and partnerships, so businesses may look to try to build trust in professional relationships and stick with partners they have a long history with to try to weather any external shocks.

4. Improve visibility

Visibility is foundational to agility. If you can’t see a problem, you can’t solve it. This is something that is made very clear in this McKinsey report, which found that many companies lack visibility beyond their tier-one suppliers.

As such, more due diligence and tighter controls on security and process (possibly with the aid of new technologies) can be key to building supply chain resilience. Businesses can, and should, look to invest in tools that track inventory, transit, and supplier performance in real-time, allowing for faster, more effective action.

Navigating policy and regulation

It’s not just what businesses can do, but also how the UK government can help assuage concerns and promote investment rather than fear. A good place to start is education. The Lords Library, for example, has published a report on Trump’s import tariffs and how this may affect UK trade.

Beyond this, the government will need to show how it plans to help the supply chain through trying times, be it streamlining processes, providing funding for investment, or working on a geopolitical scale to ensure the best deal for UK business owners.

Preparing for the future

So what does this all mean?

Resilience is not a one-off investment – it’s a long-term mindset. The supply chain needs to change the way it works with planning not for stability, but rather disruption.

This includes investing in innovation, monitoring geopolitical developments, and training staff to manage uncertainty effectively.

Final thoughts

Resilience is the bedrock for future-proofing the supply chain. Whether diversifying supply sources, updating with digitalisation, or reinforcing transparency and collaboration, all these tasks can play a role in empowering businesses to bounce back from disruptions and thrive in uncertainty.

As the hosts of the UK’s biggest supply chain event, we are fully behind collaboration on all fronts and can’t wait to see what attendees at this year’s event will take away from it. Some of the highlight talks to look out for if you’re interested in resilience include;

Securing the supply chain: harnessing technology and trust for a resilient future - a talk by Lyall Cresswell, Founder & CEO of TEG and Trustd

Airfreight and Air Cargo: Navigating the Future of Global Supply Chains - a session chaired by Ekaterina Andreeva, Head of Business Development of Cargo at Chapman Freeborn

Achieving resilience through the use of technology while mitigating technology-related risks - a talk by Helen Flanagan, Product Director at EyeQ at Wincanton

Developing a Future-Ready Workforce - a talk by Shaun Fardy, Director of Service Delivery at CILT (UK)

These talks, along with others, are sure to address any questions you may have about the challenges businesses up and down the supply chain face. If you’re interested in finding out more, please don’t hesitate to register today for the UK’s premier logistics and supply chain expo.

This event is one of the biggest in the UK and provides a wealth of opportunities to learn, network, and grow your business. With only weeks to go, sign up now and get ready to take your business to the next level.

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