Global supply chains are no longer frictionless. Protectionism, tariffs, and trade disputes are now embedded features of the operating environment rather than temporary shocks. The “just-in-time” era, once celebrated for efficiency, has given way to “just-in-case” strategies that prioritise resilience.

This shift presents a fundamental dilemma. How can supply chain leaders fortify networks against disruption without pricing themselves out of competitive markets? The answer lies not only in process or technology but in leadership. Talent and leadership decisions increasingly determine whether organisations navigate this landscape with agility or stumble under the weight of volatility.

Tariff volatility: The practitioner’s challenge

Tariffs and trade barriers move with the tides of politics, national security, and global disputes. Their unpredictability complicates forecasting, procurement, and strategic planning. Traditional risk models, built around stability, are no longer adequate. Supply chain leaders must now integrate geopolitical awareness and scenario planning into their daily operating models.

US-China tariff escalations reshaped sourcing strategies across electronics, apparel, and consumer goods. Meanwhile, the EU’s carbon border adjustment mechanism is redefining competitiveness in carbon-intensive industries, and in response to EU tariffs raised on Chinese electric vehicles, China has just imposed 62% retaliatory duties on EU pork imports.

Such examples demonstrate that tariffs are not only a financial cost but a strategic disruptor that requires continuous vigilance.

Parallel supply chains: The costs of duplication

To mitigate these risks, many organisations are reshoring, nearshoring, or creating entirely new parallel supply chains. While such moves reduce reliance on single geographies, they come at considerable cost. Duplicating factories, logistics networks, and supplier bases is expensive and operationally complex.

The challenge is not purely financial. Parallel supply chains require duplicating talent, governance structures, and culture. The strain on leadership pipelines is significant, as demand for skilled local leaders in multiple regions often outpaces supply.

The most sought-after leaders are those who combine cross-border agility with the ability to build operations from the ground up. These individuals are rare, and the competition for their expertise is fierce. Boards and CEOs must therefore think carefully about where to deploy such talent and how to retain it.

Resilience vs. affordability: Walking the tightrope

Not every supply chain needs to be duplicated. The art of leadership lies in knowing where resilience is essential and where efficiency can still prevail. Some companies overbuild redundant networks, adding unnecessary costs. Others fail to act until disruption strikes, leaving them scrambling to catch up.

Effective supply chain leadership is about defining resilience thresholds. Where is duplication non-negotiable, and where is flexibility sufficient? What risks justify investment, and what risks can be tolerated? This balance demands both financial discipline and strategic foresight.

“Smart resilience” means making selective, data-driven decisions: when to invest, when to hold back, and when to exit markets or partnerships. Leaders who master this judgement avoid both complacency and overreaction.

The end customer: Who pays for resilience?

Resilient supply chains are not cost-free, and the question of who ultimately pays is critical. While some consumers accept higher prices for security, sustainability, or ethical sourcing, others are unwilling or unable to absorb the costs.

This makes consumer sentiment a central factor in supply chain leadership. Leaders must anticipate how different markets will react and develop transparent narratives that justify pricing. Those who fail to communicate risk appearing opportunistic or disconnected from customer realities. Those who succeed position resilience not as a hidden cost but as a value proposition tied to trust, sustainability, and reliability.

The leadership imperative

The skill set required to lead supply chains is evolving rapidly. Operational excellence remains essential, but it is no longer sufficient on its own. Leaders must combine geopolitical literacy with scenario-based decision-making and cultural adaptability. They must be comfortable operating amid uncertainty and skilled in building flexible networks across borders.

The talent pool for such leaders is limited, and demand is intense. I see boards increasingly seeking individuals who are both strategists and operators, capable of managing daily complexities while positioning supply chains as competitive assets. The ability to unite tactical execution with strategic foresight is becoming the defining trait of modern supply chain leadership.

From defensive to strategic resilience

Resilience is more than a defensive posture. For those who approach it strategically, it becomes a source of competitive advantage. Leaders who embrace resilience with clarity, discipline, and courage are not merely safeguarding their organisations but redefining the future of global supply chains.

The question for boards and CEOs is not whether resilience is affordable but whether fragility is sustainable. In a fractured world, can your supply chain afford not to lead?