Do Threats of Tariffs Disrupt Your Supply Chain Strategy?
Early in my career in the Life Sciences industry, a senior leader once asked if I had watched the news that morning. I quickly understood why—a massive fire at a sugar refining plant had upended supply and demand for the commodity, posing a serious risk to our supply for production and safety stock.
Fast forward to today, and the need for a resilient, end-to-end supply chain has never been more critical. Disruptions are constant. Think back to the supply shortages during COVID-19 when ships sat idle, unable to dock, halting the flow of goods. The Ukraine-Russia war has tightened aluminum supply, as the region plays a key role in production. Now, with proposed increases in steel and aluminum tariffs, we can expect a surge in demand for U.S.-based supply. When was the last time you evaluated your supply network’s resilience?
Supply chains are intricate, interwoven systems of materials, manufacturers, and consumers. A single disruption can create widespread ripple effects that are not immediately apparent. The same applies to costs added along the supply chain. In Tesla’s early days—subassemblies and components faced excessive costs and delays as they traveled across the globe. By deeply understanding its product and manufacturing process, Tesla streamlined production, cut costs, and enhanced quality.
For regulated industries like pharmaceutical life sciences, adapting to supplier disruptions and switching suppliers on short notice is especially challenging necessitating the need for a proactive strategy and corresponding plan. The established practices to qualify multiple sources or to hold additional inventory come at a cost and takes extensive resources. Furthermore, less mature organizations lack a strategic, cost-effective approach to building a resilient supply chain—often because it requires experience, knowledge, resources, and time. Is your leadership aligned with the risks and benefits of your current supply chain design? Do the new import tariffs change decisions and actions on your supply strategy?
As your supply needs evolve, Impact Supply Chain Partners can help develop a comprehensive supply strategy, from sourcing, qualifications, tech transfers, inventory strategy, capacity planning, portfolio optimization, and much more.
You can reach out to us at contact@impactsupplychainpartners.com.
Keywords: #SupplyChain, #Pharma, #Lifesciences #ConsumerHealth #Tariffs #Resiliency #Strategy
