Beyond Disruption: Proactive steps to strengthen supply chain resilience

There is no question that supply chain uncertainty lies ahead, but leaders can still take steps to prepare their companies, clients, and teams for the future. A silver lining of the supply chain turmoil of the past few years is that it gave us new and better approaches, systems, and tools to manage through change.

Pairing lessons learned with a forward-thinking approach to the unexpected will prevent companies from falling into a wait-and-see mode. In sports terms, this is a time to practice offense.

Specifically, examining key supply chain factors through a longer-term lens will spark more sustainable plans.

Policy Changes and Logistics

After the U.S. presidential election, tariffs and trade restrictions are on the minds of all manufacturers and supply chain leaders. While policies are certainly a big question mark, the power of cross-border trade remains at peak levels.

China gains $400 billion annually exporting goods to the U.S. and hundreds of billions more from product components. Countries without close affiliation with the U.S. or China are increasing trade with other international partners at accelerating rates. Meanwhile, the value of trade between the U.S. and Mexico continues to break records year over year.

In the short term, leaders can continue to prepare for higher rates of trade as companies seek to move as many goods as possible before potential restrictions. Longer term, it’s wise to prepare for both the best and worst-case tariff scenarios instead of only the worst case. Demand for cross-border trade and supply chain logistics will continue, even if it’s temporarily impacted by policy changes.

Pro Tip: Leaders can invest in trade compliance technology to better manage trade policy changes and hire professionals specializing in global trade regulations. These measures ensure flexibility in managing sudden changes in tariffs, duties, or export restrictions.

Labor Disruptions

Labor has become increasingly unpredictable in both the domestic and cross-border supply chains. From port workers to delivery drivers, disruptions can bring operations to a halt.

Experienced supply chain professionals are used to factoring labor uncertainties into supply chain management, but looking at why labor is becoming more fraught can help leadership teams better prepare. For example, negotiations over automation are increasingly impacting port labor and adding to the likelihood of future strikes. As a result, supply chain leaders can pay close attention to this concern and monitor its foreseeable impact. Understanding the motivation behind disagreements and shutdowns makes building contingency plans easier.

Additional Preparation Tip: Diversifying labor sources and training teams on advanced automation tools can reduce dependency on specific labor groups. For example, incorporating robotics in warehouses and expanding partnerships with third-party logistics (3PL) providers that offer diverse labor pools can provide flexibility.

Geopolitical Events

In the last decade alone, the supply chain has worked through shifting trade patterns from Brexit, the US-China trade war, a global pandemic, conflicts in Ukraine and Gaza, and the nearshoring boom. From a forecasting standpoint, it’s not a matter of if geopolitical events will occur, it’s when.

In the same vein of policy change, it’s unlikely that globalization will reverse course, even if pockets of trade shifts or slowdowns occur. Preparing for potential short-term changes in international trade and cross-border logistics is important, but longer-range patterns show more stability in the international flow of goods.

Proactive Measures: Establishing redundant supplier networks across multiple countries can minimize geopolitical risks. Additionally, geopolitical risk forecasting tools can help anticipate trade pattern shifts and allow companies to make preemptive adjustments to supply chains.

Innovation

Innovation and advancing technologies are positives in our industry, but the pace of change can create fear and uncertainty. Recent entrants, from cross-border shipping endeavors like Uber Freight to AI-driven logistics start-ups, are generating new areas of competition and crowding the supply chain landscape.

While embracing innovation is critical, supply chain leaders can prepare their clients and teams for technological change by pointing out what remains tried and true. Decades of personal experience and centuries of corporate longevity and security provide clients with both practical and intangible benefits. Experience coupled with new technologies gives clients a best-of-both-worlds advantage and differentiates more seasoned players in the supply chain industry.

How to Stay Ahead:

Invest in upskilling teams on emerging technologies like AI, blockchain, and IoT.

Conduct regular technology audits to ensure systems are current and competitive.

Collaborate with innovative start-ups to test cutting-edge solutions before integrating them at scale.

Scenario Planning

Scenario planning is another powerful tool for preparing for the unknown. Companies can create detailed models that examine how their supply chains might respond to various disruptions, such as raw material shortages, major cyberattacks or shifts in consumer demand.

Practical Implementation Tips:

Develop multiple "what-if" scenarios to simulate the effects of different disruptions.

Use supply chain modeling software to test these scenarios and create detailed contingency plans.

Conduct regular practice sessions to ensure teams are prepared for quick decision-making under stress.

Looking Ahead

As supply chain professionals, we have collectively proven our ability to adapt and grow in the midst of even the toughest environments. Likewise, we’ve tested the resiliency of the supply chain and found solutions to make it even stronger.

Proactively preparing for what’s to come – even when the future is undefined – will put supply chain stakeholders in a position of strength in 2025 and beyond. Leaders can transform uncertainty into opportunity by incorporating risk management strategies, leveraging innovation, and embracing scenario planning. The challenges ahead are inevitable, but with preparation, they become manageable stepping stones toward long-term success.