Gartner Research

Uncertainties Over New Tariffs Send Supply Chain Leaders Scrambling for Short- and Long-Term Solutions

Published: 25 July 2018

ID: G00368283

Analyst(s): Kamala Raman , John Johnson

Summary

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.

Table Of Contents
  • Impacts

Analysis

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

Gartner Recommended Reading

©2019 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client