LMA Consulting urges businesses to restructure supply chains now

Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc., and a recognized leader in manufacturing and supply chain strategy, calls on manufacturers, distributors and supply chain leaders to take immediate action to restructure their supply chains as geopolitical tensions, tariff threats, and global risks escalate. With a potential resurgence of tariffs on imported goods and the growing focus on reshoring and friendshoring, businesses must adopt proactive strategies to ensure long-term resilience and profitability.

"Now is the time for companies to reimagine their supply chains," Anderson says. "The risks tied to overreliance on high-risk regions like China, combined with the increasing likelihood of tariff hikes, create an urgent need for reshoring, friend-shoring and vertical integration. Businesses that act now to build resilient, regional supply chains will not only mitigate risk but position themselves for growth in a volatile market."

The global supply chain landscape has been increasingly fraught with vulnerabilities. From cyberattacks targeting critical infrastructure to geopolitical conflicts impacting key trade routes, the challenges for supply chain leaders are growing. Upcoming tariff changes and regulatory shifts are expected to further strain operations, particularly for companies with heavy reliance on foreign manufacturing.

LMA Consulting advises businesses to follow the following strategies to address supply chain vulnerabilities and capitalize on emerging opportunities:

Reshoring and Friendshoring - Moving production closer to home or to regions with strong political and economic ties reduces dependency on high-risk areas. This strategy enhances flexibility and responsiveness while addressing regulatory and geopolitical risks.

Vertical Integration - Controlling more aspects of production internally allows businesses to streamline operations, ensure quality, and reduce exposure to external disruptions.

Sales, Inventory, and Operations Planning (SIOP) - Implementing SIOP processes helps businesses proactively address market conditions by aligning demand and supply, mitigating risks and ensuring customer satisfaction.

Advanced Technologies and Innovation - Leveraging automation, artificial intelligence and modern ERP systems boosts operational efficiency and supports growth initiatives.

Anderson emphasizes that while challenges abound, there are unprecedented opportunities for forward-thinking organizations.

"Proactive companies that take bold steps to restructure their supply chains will not only mitigate risks but gain a significant competitive edge and will capture market share," she explains.

LMA Consulting’s recent special report, FutureScape: Crafting Tomorrow’s Supply Chain Today, provides actionable insights for businesses looking to build resilient, innovative supply chains.