Back in the day, retail supply chains operated in a relatively stable, predictable environment, says Jon Gold, the National Retail Federation’s VP Supply Chain & Customs Policy. But during the past decade, the field has faced an almost constant barrage of disruptive events.
“From the introduction of tariffs on China during the first Trump administration and the unprecedented upheaval caused by Covid-19 to new global tariffs and the new conflict in the Middle East, retailers have learned that disruption is no longer the exception — it’s the rule,” Gold wrote in a recently posted blog on the NRF site.
“Supply chains that were built around efficiency, cost minimization and just-in-time deliveries have been tested like never before,” he continued, “Each crisis has forced companies to rethink their strategies, build in more flexibility and strengthen their ability to quickly adapt to the latest situation.
So how should retailers respond?
Gold says the key “is proactive planning and preparation. That means not only anticipating potential disruptions but also creating contingency and mitigation plans to quickly deal with them.” Here are some specific steps he advocates retailers take:
- Ongoing scenario planning, risk assessments and regular reviews of supplier networks are essential.
- Collaboration involving both internal teams and external partners allows retailers to share information, align strategies and respond to challenges as a unified front.
- Flexibility must be built into every aspect of the supply chain, including retailers diversifying their supplier base, avoiding over-reliance on a single region and developing alternative shipping routes.
“Ultimately, retailers that thrive in the face of disruption are those who accept it as the new normal and make resilience their top priority,” Gold concludes.
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