Wipro: How to Reshape Unstable Supply Chains with AI

Global supply chains become increasingly unstable due to trade volatility and shifting tariff regimes.

As a result, businesses around the world must rethink their strategies or risk being left behind. 

Gautam Sardar, Senior Consulting Partner and Head of Manufacturing Consulting, North America at technology services firm Wipro, sets out how AI is being used to keep supply chains adaptive and competitive. 

Sourcing strategies under pressure

"The uncertainty surrounding the timing and extent of these tariffs has led to significant challenges for businesses, particularly in the retail, ecommerce, automotive and manufacturing sectors," Gautam says.

Organisations are assessing how tariffs could reshape their sourcing models, with some looking to diversify suppliers or move production to mitigate disruption. 

Short-term responses include reclassifying products to reduce duty exposure, adjusting pricing or absorbing cost changes. But Sardar warns that long-term thinking is essential.

"It is imperative to not only mitigate the impact of tariff shifts resulting in a volume surge, evolving regulatory changes, item classification and tax calculation in the short term, but also prepare themselves for continuing long-term volatility," he explains.

Traditional supply chain systems are struggling to keep up. Many still rely on enterprise resource planning (ERP) platforms built on static rule sets, which can’t adjust quickly to rapid regulatory shifts or geopolitical instability. 

Research from the Institute for Management Development indicates that nearly one-third of exports miss out on reduced or zero duties from Free Trade Agreements, highlighting the financial risks.

Meanwhile, a Bain & Company survey published this year shows that 28% of supply chain leaders are now investing in advanced technology to better manage trade uncertainty.

AI takes the lead

More companies are turning to AI to model scenarios and act swiftly.

AI-enabled digital platforms now support continuous re-evaluation of sourcing and logistics options, helping procurement teams make faster decisions about cost and delivery.

"AI enablement to achieve semi-autonomous S&OP that present the planners and decision makers with short and long-term possibilities in wake of changing trade restrictions is essential," says Gautam. 

These tools can analyse total landed cost, which includes all fees from supplier to customer—such as tariffs, shipping and storage—to inform real-time sourcing choices. 

For firms facing rising import duties, AI also enables dynamic pricing and customer segmentation to protect margins.

Analytics is also helping to shift supplier negotiations. By generating forecasts, AI can support contract renegotiation or cost-sharing discussions with logistics providers and vendors.

One key area of development is customs compliance. 

Agentic AI systems—which operate with some autonomy but still report to human supervisors—are enhancing global customs clearance by automating product classification and providing live regulatory updates.

"Additionally, Agentic AI can support compliance management by continuously monitoring regulatory changes and helping brokers identify and mitigate potential risks," he adds.

Global sourcing vs local resilience

AI is also helping procurement leaders reconsider the balance between global and local sourcing.

Gautam recommends assessing the trade-offs: "Evaluate the potential for localising production to reduce reliance on imports and mitigate tariff impacts whilst balancing it with the economies of scale through global sourcing.

"AI can assist in analysing production costs, regulatory requirements, and consumer demand towards balanced decisions both in the short and long-term."

Scenario planning tools can support decisions on market entry or exit, based on predicted demand, tariff impact and competitive intensity. 

As Gautam puts it: "AI driven scenario models can help in determining the markets to grow, markets to exit and markets to open."

Technology as a foundation for resilience

Wipro’s view is that companies who treat the current disruption as a chance to invest in digital infrastructure will emerge stronger.

"Companies that proactively adopt technology to enhance visibility, flexibility and compliance in their operations will be best positioned to weather these disruptions and emerge stronger," Gautam says.

"We encourage you to evaluate your current supply chain and trade management systems and investigate how advanced digital solutions can assist you in mitigating risks and enhancing your operations."

From green manufacturing and sustainable logistics to AI-accelerated operations, the next generation of supply chains is being built with flexibility and responsiveness at its core.