TURN TARIFF TURMOIL INTO SUPPLY CHAIN RESILIENCE USING AI
As tariffs reshape supply chains, AI-driven procurement is building visibility, mitigating risk and protecting profit across tiers
Global supply chains – meticulously optimised over years – face unprecedented disruption from rapidly shifting trade policies and tariffs. What was once a stable procurement landscape has transformed into a dynamic environment where yesterday’ s profitable supply chain can become tomorrow’ s financial burden.
For procurement and supply chain leaders, the challenge is not merely responding to current tariff structures but anticipating future changes and building resilience into every tier of their operations. The statistics paint a stark picture of the challenge ahead. According to recent research carried out by Sapio Research, commissioned by Ivalua, 91 % of supply chain and procurement leaders in the US expect disruptions from new trade policies. This expectation reflects a fundamental shift in how businesses must approach procurement strategy – moving from reactive cost management to proactive risk mitigation powered by artificial intelligence( AI).
The multi-layered impact of tariff changes When tariffs shift unexpectedly, consequences ripple through organisations in complex ways.
Alex Saric, Chief Marketing Officer at Ivalua, identifies three critical risks that businesses face:
• Reduced profitability
• Lost market share from increasing prices
• Supply disruptions
Of particular concern is that most businesses fail to fully understand the impact of tariff changes because they lack complete visibility into their entire supply chains – a challenge extending beyond direct suppliers.
“ The impact doesn’ t just depend on where immediate suppliers are located but also the sub-tier, their suppliers’ suppliers,” Alex explains.
“ For example, having a local supplier could mean no impact from tariffs, unless that supplier relies on suppliers from the impacted country,
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