Inbound Logistics | March 2025

GLOBAL SUPPLY CHAIN STRATEGIES: CERTAIN UNCERTAINTY

manufacturing makes all the sense in the world, regardless of tariffs, regardless of a pandemic, regardless of geopolitics,” Thompson says. If America can work productively with Mexico and Canada, the three countries together could become a robust force and reduce their reliance on China and Southeast Asia, Reuter says. At the same time, “it takes a little while to turn the ship,” she adds. Moreover, labor shortages and a lack of manufacturing knowledge may mean it’s not viable to produce many products in the United States. “You can’t just bring someone from the street and say, ‘Start making this tomorrow,’” Kazzaz notes. Reshoring on a major scale won’t happen. Many of the job losses in manufacturing over the past few decades have been due to automation, rather than globalization, Amling notes. Ironically, automation may help bring jobs back in industries that are less labor-intensive and automated,

Automation has driven job losses in manufacturing, but it may also help bring jobs back in less labor-intensive industries such as automotive, aerospace, and semiconductors.

Rethink the distribution network. When designing distribution networks for today’s global environment, the real estate phrase “location, location, location” doesn’t apply. Instead, it’s about “proximity, people and power,” says Thompson. Companies need proximity to inbound suppliers, outbound customers, and labor, as well as power. For example, if a company shifts sourcing from China to India, its products may arrive at the East Coast ports in the United States, rather than the West Coast ports. The distribution network will need to consider both the inbound and outbound product ows. Rather than move fully nished products near the consumer market, companies may bring their products in an unnished state and postpone nal production, Colehower says. So, a company might make a basic printer and postpone nal assembly of the power supply until it’s in the market, given differing electrical outlets between countries. This limits the investment in inventory, protects against market risk, and improves production throughput because the focus is on one size and/or style.

“A shift back to regionalized sourcing and manufacturing makes all the sense in the world, regardless of taris, regardless of a pandemic, regardless of geopolitics.” –RICHARD THOMPSON, International Director, Supply Chain and Logistics, JLL

like automotive, aerospace, and semiconductor manufacturing.

“It’s through modern automation solutions that the United States can regain our manufacturing mojo in select industries,” he says. KEEP AN EYE ON THE BASICS Tactics such as adding buffer stock and diversifying suppliers boost the resilience of global supply chains, yet they also increase costs. “You need to be very measured and very balanced about how you execute these initiatives, or you will end up going out of business the old-fashioned way, which is by being uncompetitive,” Amling says. Because even solutions to today’s global supply chain challenges can introduce new challenges, no problem is ever permanently solved. Instead, supply chain organizations must continually evaluate multiple scenarios and prepare contingency plans. As Kazzaz notes, “Supply chain managers are never done.” 

THE QUESTION OF NEARSHORING

Will the current supply chain disruptions accelerate U.S.-based companies’ interest in nearshoring or reshoring? Experts are divided. To be sure, the closer products are made to end consumers, the less time and money spent transporting them, and the less risk of disruption. “This sort of shift back to regionalized sourcing and

26 Inbound Logistics • March 2025