To create a balanced and resilient retail supply chain, manufacturers must adopt intentional redundancies by producing the same product in different locations. This strategy is crucial for avoiding single points of failure within the supply chain. Product quality should be identical regardless of sourcing.
Focusing on countries with specific capabilities and technical expertise in manufacturing certain products is also vital. Retailers must identify the right skillsets while being able to adjust production levels according to customer needs.
A resilient supply chain seeks to renegotiate contracts with existing partners while seeking new ones, creating lasting partnerships that prioritize innovation and reliability. This approach allows retailers to shift production to countries with favorable tariffs, such as Mexico, also known as “nearshoring.”
The key to a resilient retail supply chain is its ability to withstand disruptions, quickly recover, and adapt to changing markets and conditions. By adopting this strategy, manufacturers can minimize the impact of crises and stay competitive in today’s global market.
Source: https://www.supplychainbrain.com/articles/41361-watch-how-retail-supply-chains-can-withstand-tariffs-and-trade-wars