New trade policies and tariffs are having a ripple effect throughout the world, threatening supply chains that have been woven to function in a world of globalization. This research identifies some of the risk management tools that supply chain leaders can use during this period of uncertainty.
Impacts and Recommendations
- Quantify the Exposure for the Extended Supply Chain by Material, Country of Origin and the Impact of the Anticipated Increase in Supply Chain Costs
- Evaluate Inventory Policy, Sourcing Modifications and Commercial Terms With Customers, Until It Becomes Clear Which of the Policy Changes Will Remain for the Long Term
- For Long-Term Risk Mitigation, Consider Localization and Multiple Sourcing Options
- As Global Uncertainty Around Trade Policies Accelerates, Manufacturers With Global Operations and Customers Should Place a Greater Focus on Scenario Planning If Not Doing So Already
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