Tariffs, uncertainty and disruption: how drug makers and distributors can build operational supply chain resilience

Core Insights - The article emphasizes the need for supply chain resilience in the face of tariffs and other disruptions, highlighting that companies must move beyond partial insights and gut instincts to manage volatility effectively [3][5][21] Supply Chain Visibility - Manufacturers and distributors often lack comprehensive visibility of inventory and demand, leading to inefficient ordering practices and potential shortages [1][7] - End-to-end visibility is crucial for effective supply chain management, allowing organizations to coordinate inventory as a unified asset rather than scattered pockets [9][10] Impact of Tariffs - A KPMG survey indicated that 55% of US businesses planned to reconfigure their supply chains due to new tariffs, with implementation taking 7-12 months for nearly half of the respondents [2] - Tariffs can lead to unpredictable behavior in ordering and inventory management, causing disruptions that strain forecasting and production planning [4][5] Disruption Preparedness - Many organizations are not fully prepared for major disruptions, with 77% of US hospital executives indicating a lack of readiness [13] - Disruption planning should be a continuous operational priority, not just an annual exercise, to ensure effective responses to various challenges [16][22] Role of Technology and AI - AI can enhance decision-making by analyzing data and providing risk signals, but it should be viewed as a tool for speed rather than a complete solution [17][18] - Technology, such as RFID, can improve inventory tracking and change organizational behavior towards more efficient processes [19] Actionable Strategies - Companies should build end-to-end visibility through integration, develop routine disruption playbooks, and apply AI strategically to improve supply chain resilience [22][23]