BEST PRACTICES FOR GLOBAL TRADE
1. HAVE A PLAN Companies with global supply chains that navigated the pandemic should be able to take advantage of that experience to tackle new disruptions and periods of uncertainty when they emerge, says Don Maier, an associate professor of practice in supply chain management at the University of Tennessee. While supply chains prioritize stability, ongoing geopolitical disruptions— whether domestic or international—are an unavoidable reality. “Smart companies learned during the pandemic to make sure they continue to use a similar type of planning structure for any kind of potential future event,” Maier says. “All these future events will be different, so you don’t know exactly what to plan for, but at least you know what partners you may want to contact and you have a direct communication link to your primary suppliers. “Even if you don’t implement those plans, you should have them at your ngertips, so you know what to do just in case,” he adds. 2. MANAGE CASH FLOW Companies that excel at managing their cash ow are best positioned to continue to thrive in ever-shifting global trade scenarios of all kinds. “If I can manage my cash ow better than my competitors I can adjust to situations that develop,” Maier explains. “I can expand my supplier base, even though I’m not buying in larger quantities. I also might be able to accept a higher transportation cost, such as using air rather than ocean, if necessary. “It’s the same thing with warehousing: with enough cash ow, I might be willing to expand my warehouse network because I need to bring in more inventory,” he says. “That means sitting on inventory longer before I turn it into a sale. “But if I can manage my inventory- to-sales ratio better than my competitor, that will be bene cial for me,” Maier adds.
3. EMPOWER YOUR CROSS FUNCTIONAL TEAMS High-performing, cross-functional teams that are empowered to make network-wide decisions enable shippers “to stand above the competition,” notes Glenn Koepke, vice president, industry and solution strategy at Vector, a San Francisco-based provider of digital logistics solutions. “Whether it is nearshoring suppliers, insourcing production, or forward- deploying products to markets that aren’t as volatile, the foundational element of success versus failure is whether your supply chain runs on high-performing teams that are empowered, motivated, and aligned with the organization’s values and goals,” Koepke says. Similarly, supply chain leaders need to sit side-by-side with their teams so that global trade logistics remain rmly in the foreground. “Too many decisions are made in boardrooms without a real understanding of day-to-day operations,” Koepke says. 4. COLLABORATE ACROSS THE SUPPLY CHAIN In light of the complexity of a global supply chain, prioritizing the partners you choose and the quality of your
collaborations is essential. “Logistics isn’t a solo sport,” Daigle says. “Even if you single-source materials, your suppliers rely on thousands of companies to get the material they need to produce,” Koepke says. To navigate this interdependence effectively, more companies are turning to shared visibility. “Today, 63% of companies share visibility data with partners to improve ef ciency,” Daigle notes. “The most adaptable businesses don’t simply track their own shipments— they integrate real-time insights with carriers, suppliers, and customers to create a more synchronized, responsive supply chain.” Aligning sourcing strategies with real- time logistics conditions is also crucial, says Jeffrey Shih, CEO of Dimerco, a Taiwan-based provider of global logistics solutions. This approach often means working with partners who have the sophisticated tools and expertise that are necessary today. “One proven best practice is to partner closely with third-party logistics (3PL) providers that offer both freight capacity and local market expertise, especially in dynamic regions such as Asia,” Shih says. Some shippers underestimate the complexity of cross-border compliance and setup, especially when entering
emerging markets such as India. They also sometimes overlook the
Companies operating global supply chains in dynamic regions like Asia need to understand the complexities of cross-border compliance and local business customs. These firms can benefit from working with logistics partners with deep international experience.
122 Inbound Logistics • July 2025
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