Managing Supply Chain Risks During Global Crises

As Tariffs Disrupt the Flow, 4 Supply Chain Moves Every Executive Should Make: Tariffs aren’t just a trade issue, they’re a leadership one. As an executive coach, I work with leaders navigating disruption to become more effective in how they think, decide, and lead so their organizations and teams perform at the highest level. Right now, global supply chains are under pressure from shifting tariffs, reshoring mandates, and geopolitical realignment. What used to be a smooth, just-in-time operation is now a daily exercise in adaptability. Here are four strategic shifts every executive should be considering: 🔍 1. Audit Hidden Dependencies Most leaders track Tier 1 suppliers—but disruptions often originate in Tier 2 or Tier 3. Map the full supply chain to understand where risks lie beyond what’s immediately visible. 🌎 2. Go Beyond “China-Plus-One” Relocating from China to Vietnam or Mexico may ease tariff exposure, but true resilience requires a multi-regional approach. Diversify sourcing and distribution to withstand geopolitical shocks. ⚙️ 3. Align Procurement with Enterprise Strategy It’s no longer just about cost. Factor in tariffs, political stability, and fulfillment risk. Ensure procurement and strategy functions are working in tandem—not in silos. 🧠 4. Embrace Supply Chain Intelligence AI tools and digital modeling can help you simulate scenarios and plan proactively. Today’s smart supply chains aren’t static—they’re dynamic, data-driven, and decision-ready. Executives who succeed in today’s environment are the ones who build resilience into their operations and clarity into their leadership. Tariffs may be the current headline, but adaptability, foresight, and strategic alignment are the lasting differentiators. If you are looking for a partner to support you in making your supply chain and your leadership more future-ready, let's connect.

Global trade is in a crunch, as a complex web of factors cause a container capacity crisis that’s shaking the very foundations of international commerce. The onset of peak shipping season, the need for longer transit times to circumvent the Red Sea, and adverse weather conditions in Asia have all conspired to disrupt trade on vital routes. This disruption has led to ocean carriers either skipping ports or reducing their port time, which subsequently impacts the collection of empty containers.    But businesses are not helpless in this situation. There are several strategies that can be adopted to alleviate the impact.     1. Enhance Supply Chain Visibility: By implementing advanced tracking systems like CARGOES.COM Flow offered by DP World Americas, businesses can receive real-time updates on container movements, aiding in the prediction and management of delays. 2. Diversify Supplier Base: Establishing relationships with multiple suppliers can decrease reliance on a single source and enhance the ability to source containers. 3. Optimize Inventory Management: The adoption of just-in-time inventory practices can reduce storage needs and the number of containers required. 4. Leverage Technology: Utilizing AI and machine learning can lead to more accurate demand forecasting, resulting in better container utilization. 5. Collaborate with Stakeholders: A close collaboration with shipping lines, ports, and regulators can result in more efficient container management and turnover. 6. Adjust Logistics Strategies: Considering alternative transportation methods or rerouting options can help bypass congested ports.    By proactively addressing these areas, businesses can better weather the storm of container shortages and ensure a smoother operation of their supply chains. This is not just a survival strategy, but an opportunity to innovate and thrive amidst adversity.    #GlobalTradeCrisis #SupplyChainManagement #LogisticsInnovation #ContainerShortages #DPWorldAmericas

Colombia just turned away two U.S. deportation flights—triggering an immediate 25% tariff. This highlights a critical reality: today's trade landscape is unpredictable. Businesses must rethink their supply chain strategies to balance risk, cost, and resilience. Strategic diversification is key to mitigating vulnerabilities and enhancing flexibility—whether sourcing from Colombia, Mexico, China, or beyond. How to drive strategic diversification effectively: 1. Dual-Sourcing & Multi-Region Models - Diversify critical supply nodes across multiple regions. - Balance cost efficiency with risk management by leveraging free trade agreements (e.g., USMCA, ASEAN). 2. Supplier Collaboration & Development - Build long-term partnerships and develop suppliers in emerging markets. - Ensure quality and compliance while maintaining cost competitiveness. 3. Regional Hubs & Nearshoring - Reduce lead times and logistics costs by producing closer to end markets. - Take advantage of reshoring incentives like the CHIPS Act and IRA. 4. Risk-Based Supplier Segmentation - Prioritize diversification efforts based on strategic importance and risk exposure. - Use frameworks like the Kraljic Matrix to identify critical suppliers. Diversification isn’t about abandoning China or any other region—it’s about creating a more resilient and agile supply chain. How is your organization approaching supply chain diversification in response to shifting trade dynamics?

There’s a lot of uncertainty about what the global supply chain will look like in the coming months. I’ve felt like we’ve been playing supply chain on “hard mode” for the past 5 years, banging our heads trying to “get it under control.” Ironic, I know, given our namesake, Ministry of Supply. • 2019 - Regulatory: US-China relations and Sec. 301 changes • 2020 - Demand: COVID volatility • 2021 - Supply: Lengthening lead times • 2022 - Demand: Post-pandemic consumer boom • 2023 - Supply: Post-pandemic inventory bullwhip peak • 2024 - Demand: Inflation-induced softening • 2025 - Regulatory: Uncertainty in global production ecosystem We played MIT’s “The Beer Game” back in 2017 at a Ministry of Supply retreat. It’s a classic simulation that teaches about asymmetric information in production and distribution across 4-5 stages. Orders stream in steadily until, suddenly, an order spikes — without fail, people overcompensate. The key to managing this is resisting the impulse to overreact. Two years ago, and we found ourselves with ballooned inventory at 2x our target levels. Our inventory turns had dropped from 3x to 1x per year. The Problem was Twofold: •Rational: Safety stock is hypersensitive to demand volatility and lead times, especially when they length unpredictably. • Emotional: In theory, a rational actor would order proportionately… but we don’t. As my colleague Ian would say, “It’s like riding a wave; you can never see the bullwhip when you’re in it.” The desire to “gain control” over demand volatility and lead time uncertainty leads us to “plan further out.” Thanks to Sean Willems and Steve Graves, who introduced us to a radically different strategy: Don’t fight volatility. Design for it. The Solution: 1. Multi-Echelon Forecast - Split product forecasts. We use “fabric platforms” where shared fabrics are used across SKUs, pooling demand risk and shortening lead time forecasts. 2. Innovate to Standardize Materials - A double-dye cationic process now lets us create our solid and heathered Kinetic suits from a single fabric, pooling demand. 3. Shorten Reorder Cycles - Shifting from 2-4 buys a year to 12 increases PO frequency and shortens lead times, improving accuracy over forecasts. Connected forecasts like Crest, Flagship, and Singuli help place POs quickly. 4. Strategic Inventory Placement - Use safety stocks of raw materials and intermediate parts based on lead times. Undyed fabric is cheaper than a finished blazer and pools demand across products. 5. Communicate Inventory & Sales with Suppliers - Sharing forecasts and downstream sales data lets suppliers help create the materials strategy. Moving from emails to bi-weekly calls has made all the difference. Hope this helps with robustness in an uncertain climate. Thanks to partners Lever Style, Motives, SINGTEX Group , Teijin Limited, Toray Industries, Inc. for being part of this journey.

If the last few years taught us anything, it’s this: global supply chains can face unexpected curveballs… FAST! From sudden shortages of raw materials to shipping delays that spread like dominoes, the question isn’t if disruption will occur, but when. So, how do top companies stay resilient in the face of uncertainty? Enter the power combo of Operations Research & Simulation. Imagine having a virtual “sandbox” where you can tweak your supply chain, adjusting lead times, production capacity, or shipping routes, and watch the outcomes unfold before you commit a single dollar. That’s what simulation tools offer: a safe environment for “what-if” scenarios. Coupled with O.R. techniques, you don’t just guess and hope; you model and optimize. Here’s why it’s a game-changer: ✅ Predicting Demand Shifts: Instead of scrambling when demand suddenly spikes or dips, you can model different demand patterns and ensure you’ve got the right inventory in the right place at the right time. ✅ Evaluating Trade-Offs: Should you keep more stock in a central warehouse or spread it across multiple regional hubs? Simulation lets you see how each choice impacts costs, service levels, and sustainability. ✅ Stress-Testing Disruptions: From port strikes to pandemics, you can test your supply chain’s resilience against worst-case scenarios and develop robust contingency plans. In a world where even a tiny hiccup can ripple across continents, having the ability to “rewind and replay” supply chain decisions is invaluable. By blending Operations Research and simulation, forward-thinking businesses aren’t just reacting to disruptions, they’re proactively preparing for them, ensuring smoother operations and stronger bottom lines. Thinking ahead in uncertain times isn’t just smart… it’s essential. Your supply chain’s future can be more than guesswork. It can be modeled, optimized, and ready for whatever tomorrow brings.