Leaders

Supply Chain Leaders Navigate New Tariff and Trade Policies

In the ever-evolving landscape of global supply chains, leaders in logistics and manufacturing are grappling with a set of formidable challenges. Unpredictable global disruptions, fluctuating demand, and the complexities of new tariff and trade policies have necessitated a paradigm shift in how companies approach supply chain management. This article delves into the multifaceted issues confronting the industry and explores the innovative solutions being employed to navigate this turbulent environment.

The New Normal: Disruptions and Digital Solutions

The global supply chain has been under tremendous strain due to breaks, demand fluctuations, and unforeseen costs and barriers. As a result, the ability to quickly react to disruptions is now a critical requirement for companies in the supply chain and manufacturing sectors. In response, technological advancements such as virtual twins and artificial intelligence (AI) have become indispensable tools for achieving agility and resilience.

"Virtual twins offer a precise digital representation of the entire supply chain, enabling companies to access real-time operational status of facilities, resources, and products," said Adrian Wood, director of strategic business development at DELMIA.

These digital technologies are not just about maintaining the status quo; they are about transforming the way businesses operate. AI methods, for example, excel at balancing supply and demand while considering physical and logical constraints. This is particularly vital when dealing with challenges such as tariffs, which have the potential to disrupt traditional supply chain models.

Tariffs and Trade: Navigating New Policies

One of the primary objectives of recent trade policies is to bring manufacturing back to the United States, reversing the trend of offshoring production that was once seen as more cost-effective. However, this shift comes with its own set of challenges, particularly concerning tariffs.

A Gartner survey conducted from March 17, 2025, to April 7, 2025, revealed that 92% of supply chain leaders from organizations with $1 billion or more in revenue cited 'increased costs' as the top risk associated with new tariffs. Additionally, 92% expressed concerns about slowing customer demand, while 45% worried about retaliatory measures impacting international demand.

  • 45% of supply chain leaders plan to pass tariff costs to customers.
  • 43% are considering various supply chain initiatives to mitigate costs.
  • 47% are renegotiating supplier contracts as a primary strategy.
  • 43% are exploring collaboration opportunities with suppliers.
  • 40% are addressing country of origin and trade management tactics.
  • 39% are adjusting supply locations outside the US.
  • 26% are adjusting production locations outside the US.
  • 23% are pulling inventory forward.

Strategic Innovations and the Role of Technology

In the face of these challenges, companies are turning to strategic innovations to remain competitive. The use of virtual twin technology is helping companies address questions related to operational costs, capital investment, and strategic changes. This precision is especially important when making billion-dollar decisions, taking into account factors such as skilled labor availability and the impact of automation and robotics.

Moreover, rapidly redesigning products to reduce reliance on parts that require multiple border crossings is a short-to-mid-term strategy that companies are employing to tackle supply chain challenges. This approach not only reduces the risk associated with tariffs but also enhances the efficiency of production processes.

Leaders and Recognition in the Field

Despite the uncertainties, companies and leaders are being recognized for their contributions to the field. The 2024 Women in Supply Chain Award honored several Ryder leaders for their achievements. Kristy Killingbeck, vice president of supply chain operations at Ryder, has expanded the company's consumer packaged goods transportation management portfolio significantly. Lesley Kerr, vice president of human resources at Ryder, launched the Future Leaders Program, advancing career growth and diversity. Diana Anderson, vice president of talent management and human resources at Ryder, commended these leaders for their contributions.

Ryder, a company deeply involved in supply chain and logistics, manages nearly 250,000 commercial vehicles and operates nearly 300 warehouses spanning over 100 million square feet. With 760 maintenance locations, the company is a significant player in the industry, showcasing the scale and complexity of modern supply chains.

As the industry navigates through these challenging times, the role of innovative technologies and strategic leadership becomes even more critical. The integration of virtual twins, AI capabilities, and strategic initiatives not only helps companies mitigate risks but also positions them for future growth in an increasingly complex global market.

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