Global Trade Disruptions Push Businesses Toward Dual-sourcing Models

Shippers are turning to dual-sourcing as a long-term strategy to build resilience into their supply chains. A recent swing in U.S. tariff policy within a 24-hour period where  policies have been reversed and then reinstated, highlights the unpredictability of the global trade environment.

According to Rohit Tripathi, Vice President of industry strategy, manufacturing at Relex Solutions, this unpredictability is driving a fundamental shift from globally optimized supply chains to regionally focused models. These regionally focused supply chains aim to reduce reliance on a single source or route.

Dual-sourcing which was once a contingency strategy is now becoming a standard operating model. Tripathi describes an emerging trend of “East for East” and “West for West” sourcing, where procurement is divided by region to mitigate risk.

While tariffs have contributed to the shift, they are just one of several disruptions reshaping logistics. Businesses are now compelled to treat disruption as a constant factor. As a result, supply chain models are being adjusted to absorb these shocks without a severe impact on operations.

Not all change is negative. New regulations in the EU, for example, are aimed at improving sustainability and traceability, ultimately fostering healthier business practices.

Source: The Loadstar

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