Tariffs and shifting trade policies are reshaping global supply chains, exposing new vulnerabilities and driving up costs.
Rapid changes in global trade policies and tariff rates are disrupting how companies source materials, manufacture products, and manage logistics. Many organizations today have a fragmented approach to risk management across operations, logistics, procurement, sustainability, and business continuity, leaving room for blind spots. By evolving from a siloed risk management approach to an integrated comprehensive view of risk across the supply chain, organizations can drive greater efficiency and resilience.
Companies that are nearshoring, sourcing in lower-tariff countries, or leveraging free trade agreements, still face sourcing, procurement, and risk management challenges when establishing new supply chains. Without visibility into supplier operations or a proactive risk strategy, organizations face uncertainty that threatens sourcing reliability, speed to market, and operational continuity.
Here are practical steps you can take to adapt:
Map and analyze your supply chain:
- Evaluate the impact of current and proposed tariffs to understand possible risks associated with operating in new regions.
- Identify and assess alternative suppliers in lower-risk regions to minimize business disruptions.
- Build scenario plans to anticipate potential tariff shifts.
- Work with procurement to understand and plan for sourcing region risks.
- Partner with suppliers early during onboarding to proactively identify and resolve gaps.
Strengthen trade compliance:
- Align processes with the Customs Trade Partnership Against Terrorism (CTPAT) program and best practices.
- Ensure internal processes adapt to duty rate changes by aligning sourcing, procurement, data, and trade compliance teams to quickly adjust.
Assess new or alternate suppliers:
- Conduct comprehensive risk assessments, beyond cost and security, to include ESG, operational, and geopolitical risks.
- Evaluate the stability of the full supply chain, from manufacturing to distribution.
- Avoid hidden risks when switching suppliers due to tariffs.
Plan for strategic resilience:
- Integrate risk management across sourcing, logistics, and compliance functions.
- Develop contingency plans for de minimis changes, US-Mexico-Canada Agreement (USMCA) updates, and bilateral trade shifts.
- Improve agility and visibility in cross-border supply chains.
- Work with transportation and logistics providers and develop effective warehousing and shipping strategies to manage rapid changes in trade demand due to shifting tariffs.
Why BSI Consulting?
BSI Consulting helps organizations navigate tariff disruptions and shifting trade regulations with confidence. By combining deep expertise in supplier mapping, international trade compliance, and supply chain risk management, we help companies reduce exposure to tariffs, improve operational resilience, and maintain continuity in global sourcing and logistics.
Get in touch:
Call: 1-888-429-6182
Email: consulting@bsigroup.com
