EY: How to Navigate Supply Chain Challenges in the Trump Era

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Brad Newman Global Supply Chain & Operations Leader at EY
Brad Newman, Global Supply Chain & Operations Leader at EY, shares four strategies for navigating supply chain challenges during Trump's time in office

There can be little doubt that the incoming US presidential administration is poised to transform global trade dynamics. 

US President Donald Trump and his top team are reassessing tariff and trade policies, updating bilateral and multilateral agreements and promoting investment in domestic manufacturing.

As a result, multinational companies must swiftly adjust to an evolving supply chain environment.

Here, Brad Newman, Global Supply Chain & Operations Leader at EY, shares four considerations for navigating supply chain challenges during the new US presidential administration.

Multinational companies must swiftly adjust to an evolving supply chain environment. Picture: EY/LinkedIn

1. Holistic network optimisation

As businesses navigate an increasingly complex global landscape, supply chain optimisation requires a more sophisticated and comprehensive approach than ever before.

"A holistic approach to supply chain footprint optimisation is beneficial during the best of times and essential during uncertainty," explains Brad, via LinkedIn.  

He advocates for comprehensive scenario planning that accounts for numerous interrelated factors, from cost efficiency to service levels, including cost efficiency, service levels, sustainability and tax considerations. 

The result is that organisations will be better placed to develop resilient strategies to respond proactively to market changes.

2. Tax and regulatory integration

While companies have historically focused on balancing cost and service, modern supply chain optimisation demands deeper consideration of tax and regulatory implications.

Brad emphasises the importance of collaborating with tax and regulatory experts to integrate these considerations into operational strategies.

"By doing so, companies can avoid the pitfalls of focusing too narrowly on one aspect, such as minimising customs duties, at the expense of overall operational efficiency," he notes.

"Ensuring that strategies are flexible enough to adapt to changing regulations is also crucial in maintaining operational efficiency and maximising the value of invested capital."

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3. Consider environmental impact

Sustainability has emerged as a fundamental consideration in supply chain planning.

Organisations must now factor in both corporate environmental goals and evolving regulations when analysing different scenarios.

Brad puts forward a methodical approach: "Organisations can baseline their carbon footprint, set measurable improvement goals and track progress to stay committed to their own environmental objectives and enhance efficiency and resiliency.

"Additionally, as a mix of supply chain environmental regulations come into effect around the world and businesses move into new regions with different regulatory regimes, they must evaluate their new supply chain networks for compliance."

4. Data-driven decision making

Technology and its various evolutions continue to transform supply chain optimisation capabilities.

Advances in computing power and network modelling capabilities, for example, have made it possible to take a data-driven and AI-enabled approach to model supply chain footprints.

This advancement enables businesses to make more informed trade-off decisions that balance cost, service and sustainability objectives.

"Investing in modelling tools to evaluate different scenarios can lead to more informed and effective decision-making, helping businesses maximise the value of their supply chain networks by ensuring that resources are used efficiently and effectively," adds Brad.

EY's Brad Newman advocates a four-pronged approach to navigating supply chain disruption

He concludes: "As the global trade landscape continues to shift, now is the time for businesses to reimagine their supply chain networks.

"By taking a holistic view and integrating the management of different considerations, they can develop robust strategies to navigate complexities and emerge stronger in the face of uncertainty."


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