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Shippers are turning to dual-sourcing as a long-term strategy to navigate ongoing trade policy uncertainties. In just a 24-hour period, U.S. tariff policies have been reversed and then reinstated, highlighting the unpredictability of the global trade environment.
Rohit Tripathi, Vice President of industry strategy, manufacturing at Relex Solutions, said the current environment is driving a “total remapping of supply chains”, shifting from globally optimized supply chains to more regionally focused ones. These regionally focused supply chains are designed to serve specific markets and reduce reliance on a single source or route.
Tripathi noted that while dual-sourcing has traditionally been a contingency strategy, it is now becoming standard practice. He described an emerging “East for East” and “West for West” sourcing, where procurement is divided by region. “You’ll have sourcing split into regions; so, sourcing for the Middle East and Africa, and sourcing for Europe, and then separate sourcing for the Americas.”
While tariffs have contributed to the shift, Tripathi identified them as just one of several disruptions affecting supply chains, alongside geopolitical tensions and the ongoing Red Sea crisis. Businesses are now compelled to treat disruption as a constant factor. As a result, supply chain models are being adjusted to absorb these shocks without a severe impact on operations.
Tripathi also pointed out that not all disruptions are detrimental. Some changes, such as new regulations in the EU, are aimed at improving sustainability and traceability, ultimately fostering healthier business practices.
Source: The Loadstar
