How Changes to the Automotive Industry is Affecting to Procurement (1)
April 2025
Supply Chain Planning Lessons from the New Administration
The Trump administration’s policies, ranging from tariffs to a “buy American” agenda, have disrupted global supply chains in ways that could have lasting effects. These changes are forcing companies to reassess how they approach sourcing, manufacturing, and distribution. As a result, supply chain planning has become a critical function, with businesses facing increasing unpredictability in trade and geopolitics. To navigate these challenges, companies must become more agile, adopting strategies that can quickly adapt to emerging risks.
The tariff impact: A new way of global trade
A key aspect of the administration’s trade policy has been the imposition of tariffs, particularly targeting imports from countries like China. For companies accustomed to cost-effective global sourcing, this is already causing significantly higher costs and requiring major changes to supply chain strategies.
For example, Apple has had to reassess its reliance on Chinese manufacturing. The company has shifted part of its iPhone production to India and other countries to mitigate the financial impact of tariffs. In early 2025, Apple took the unprecedented step of airlifting a record number of iPhones from India to the U.S. as a direct response to concerns over tariffs, underscoring how quickly companies must adapt their global supply chains to shifting trade policies.
In the automotive industry, German giants like Volkswagen and BMW are feeling the impact of new tariffs on vehicles imported to the U.S. A 25% tariff imposed on imported cars and parts has pushed these companies to reevaluate their production strategies. Some are increasing production in the U.S. to avoid higher costs, while others are exploring reshoring options to maintain competitive supply chains.
Outsourcing and offshoring
For years, businesses have relied on outsourcing and offshoring to reduce costs and streamline their supply chains. However, the current geopolitical landscape has caused many companies to change these strategies.
Tariffs and trade wars have led to a significant shift toward reshoring and nearshoring, as companies seek to reduce the risks and costs associated with global supply chain dependencies. For example, U.S. manufacturers are increasingly bringing production back to North America, while European companies are looking to local suppliers within the EU to ensure supply chain resilience.
Why supply chain planning has become essential
The administration’s policies have exposed the vulnerabilities of supply chains that were overly dependent on specific countries or regions. With costs and complexities growing, businesses are being forced to rethink how they operate on a global scale and make changes such as diversifying suppliers, adding more flexibility in sourcing, and developing more robust risk management processes.
As a result, strategic supply chain planning has become indispensable to maintaining efficiency and reducing risks in this volatile environment.
Impact on supply chain resilience and risk management
The lasting lesson from the past few years is that companies must proactively manage supply chain risk and resilience, rather than merely reacting to it. Businesses have learned the importance of diversifying their supplier networks, improving forecasting systems, and increasing flexibility within their operations to ensure continuity.
Managing Director at DSJ Global, explains:
The role of leadership responsibilities in supply chain has grown in the last few years. Companies now realize that strong leadership is essential in navigating the complex challenges that come with geopolitical shifts, tariffs, and other disruptions. Leaders in these key positions must not only manage day-to-day operations but also think strategically and anticipate risks, so they can implement proactive solutions.
Resilience through talent development and succession planning
Building long-term resilience in supply chains also requires a focus on talent development and succession planning. In times of disruption, companies that invest in upskilling their workforce are better prepared to handle unforeseen challenges.
Many businesses are implementing training programs to develop leadership within their teams, ensuring that they are ready to step into critical roles when needed. Additionally, as many industries face an aging workforce, succession planning has become essential to ensure the continuity of leadership and operational resilience in the face of changes.
The need for specialized supply chain talent
As firms adjust their strategies to meet new challenges, the demand for skilled professionals has risen sharply. The need for individuals who can handle risk management, build supplier relationships, and engage in strategic planning—not just logistics—has become crucial.
Companies are now looking for leaders who understand both the global landscape and how to adjust operations quickly to mitigate risks. However, finding exceptional talent to meet these demands has become increasingly difficult.
At DSJ Global, we specialize in sourcing talent across procurement, logistics, planning, engineering, leadership, and technical operations. By connecting businesses with skilled professionals, no matter their requirements, we help them build the strong leadership teams necessary to optimize their operations and navigate these turbulent times.
Yacine Fall, Director – Berlin at DSJ Global, shares an insight into how some firms are already adapting their hiring strategies:
What we’re seeing now is a shift in hiring practices—companies are more open to bringing in candidates who may not have all the specific technical skills upfront but have the right mindset, adaptability, and potential to be trained into the role. This reflects the changing nature of supply chain operations, where agility, problem-solving, and the ability to quickly adapt are just as important as traditional expertise.
Building resilient teams
As the global supply chain continues to evolve, companies need professionals who can make swift decisions, drive innovation, and guide their teams through uncertainty. At DSJ Global, we have a vast network of experienced leaders who can refine strategies and lead organizations through change. Whether you need supply chain managers, executives, or risk management experts, we ensure you have the right talent in place to stay adaptable and efficient.
With expertise across industries such as retail, manufacturing, and logistics, DSJ Global helps companies build teams that respond effectively to disruptions.
Looking to strengthen your supply chain?
Request a call back today, and let’s discuss how we can help you find the talent to guide your business through the next phase of global change.