Successful supply chains have always been measured by how well they deal with complexity. Getting deliveries and returns right requires multiple levels of collaboration, information sharing and strategic decision making to reduce the risks of confusion or delays. In tandem, customer expectations have changed. Expedited deliveries and a smooth returns process are now intrinsically linked to a positive customer experience. Amongst US consumers, cost, transparency of shipping and flexibility and ease of returns, including real-time tracking, are now the leading delivery preferences.
With seamless buying experiences now standard, pauses in supply chain execution have major consequences for customer loyalty and brand reputation. This is particularly damaging at a time when every pound is crucial. Beyond driving cost efficiencies, enhanced speed and resilience are now equal parts of the supply chain challenge, and retailers must get this process right to succeed.
Even if brands understand that resilience is key, achieving this is another matter entirely. The volume and regularity of significant supply chain disruptions have tested the resilience of even the strongest supply chains. Organisations continually reevaluate the processes they have in place to ensure goods continue to reach customers.
Global impact of tariffs
Political upheaval, global conflicts and the introduction of trade tariffs have driven six months of unprecedented global supply chain uncertainty. It’s estimated that the economic impact of the tariff disruption alone could reach as high as $1.4 trillion globally. Ongoing tensions have destabilised established supplier relationships and created uncertainty in the cost of products and materials. Beyond costs, businesses face increased uncertainty in product availability and financial planning, adding further obstacles to already complex operations.
2025 was a fundamental milestone in supply chain strategy. Single region sourcing and rigid inventory management are rapidly fading. In its place, diversification in sourcing and real-time adaptability have become more important than ever.
At its base, for retailers, navigating the evolving tariff environment is about maintaining customer satisfaction. Organisations have opted to move manufacturing of products to new markets. Others have used previous pauses in tariff implementations, and regular legal challenges, to try and ‘time’ tariff implementations and activate previously budgeted activity at the optimum period.
Among these changes, a question has emerged – in a world that is now defined by constant tariff uncertainty, where can technology help to establish a new, more resilient approach to supply chain execution?
Does forward buying help?
Forward buying of inventory has become the most common response to tariff-inspired uncertainty, as organisations aim to maintain product levels and meet customer demand. In the short term, some stability has been achieved. Organisations have been able to maintain existing purchasing and pricing strategies and the flow of goods. Over the long term, however, this strategy carries risks. In fast moving industries, like consumer goods, demand can be linked to virality. Trends can die as quickly as they begin, increasing the risk of product redundancy. Falling demand already costs even the smallest retailers as much as £10K per year. Over the long term, tariff uncertainty will continue to disturb the balance between purchasing and investor management and could cause costs to spiral.
Staying future-ready requires businesses to enhance preparedness. Streamlining operations and building real-time visibility are an important step. As peak season planning picks up, many organisations face uncertainty around how to manage procurement and ordering in a way that minimises waste and inefficiency.
Integration of supply chain technologies, like order management (OMS) and warehouse management (WMS), provide real-time visibility across customer demand, supplier delays, and order status. Live, up-to-date information empowers teams to proactively manage and optimise supply chain operations, reducing bottlenecks and maintaining overall efficiency.
Making technology-powered decisions
The current tariff environment has also reduced the decision-making window. Taking a painstaking approach to sourcing goods and materials was once common practise. The current environment, however, necessitates companies to pivot on short notice. The announcement of any new policy or tariff could inflate costs to an unsustainable level. The ability to effectively source alternative suppliers, in markets with smaller tariff restrictions, or being able to re-route products and amend production timelines, has become a focal point of success.
This level of decision making requires the practical application of data. Predictive analytics are a powerful tool that organisations can use to understand when costs might rise, or delivery delays could happen. Real-time dashboards mitigate supply chain disruption and provide informed and expedited decision making. Businesses can monitor changing global developments; assess potential risks to their own supply chain processes and act in a greatly reduced timeframe. Traditionally, these planning cycles may have taken place on a quarterly basis. Today, data analytics tools mean pivots can be made in days or hours. The impact of this cannot be overstated, building resilience against disruption alongside a wider competitive advantage.
It is safe to say that disruption isn’t going away. Whilst tariffs undoubtably pose challenges, the opportunity for organisations to use this period for fundamental business change is clear. Technology can build stronger supply chain processes and speed up real-time decision making. Not only will this improve responses to tariff-based disruption, but ultimately it will improve the ability for businesses to meet customer expectations, which remains the end goal.
- Risk & Resilience