Embrace Uncertainty: Strategize for the Unexpected

According to a recent publication by SupplyChainBrain, the uncertainty stemming from the U.S. tariffs ranging from 10% to 50%, which were enacted on April 2, is creating distinct risks for global supply chains. These tariffs can be imposed abruptly and are collected immediately upon goods’ arrival, leading to ongoing fluctuations and negotiations. The potential for retaliatory measures adds another layer of complexity, with rates shifting unpredictably and products being added or removed from tariff lists.

for over a decade, freight shippers have been grappling with challenging calculations related to operational costs and capital expenditures due to last-mile e-commerce fulfillment demands. This has been further complex by the impacts of COVID-19, inflationary pressures, and looming recession fears. So where do tariffs fit into this intricate risk landscape?

A survey conducted by SupplyChainBrain in collaboration with Seagull Software—a company based in Bellevue, Washington that specializes in barcode labeling and supply chain visibility—sought insights from supply chain managers regarding their companies’ vulnerabilities amid these new tariff challenges. The survey focused on three key areas: 1) exposure to geopolitical risks; 2) the importance of data quality and item-level traceability; and 3) advancements made in adopting technologies that enhance actionable visibility.

The findings of this survey titled “Resilience in Uncertainty: Understanding the Impact of Tariffs, Geopolitical Risk, and Lack of Data Quality in the Supply Chain” primarily reflect perspectives from executives at vice president or director levels across various sectors including transportation services, warehousing, industrial manufacturing as well as retail.

Key takeaways include:

Around three-quarters of respondents indicated that their organizations are heavily affected by geopolitical or socioeconomic disruptions; though, only about half feel adequately prepared to handle these challenges.

A slightly larger proportion recognizes the critical importance of high-quality data for informed decision-making along with item-level traceability for enhanced visibility; yet substantially fewer have fully implemented these capabilities.

Over one-third reported issues such as fragmented data systems lacking standardization or governance alongside errors arising from manual data entry processes.

Dive deeper into how businesses are balancing risk assessment against costs during this turbulent tariff period!