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Industry Updates

Is Your Supply Chain Prepared?


A new DHL/Resilience360 survey finds that many companies are unprepared to withstand the negative effects of the U.S.-China trade war.

“Companies with supply chain operations in the U.S. and China are facing the unique challenge
of having to adopt various measures to reduce their risk exposure and mitigate the impact on business operations,” the report said. “Given this backdrop, we asked respondents to assess the extent to which the trade war was impacting production and supply chain operations and what particular measures companies with operations in both countries are taking to mitigate these risks.”

DHL/Resilience360 found:

  • More than two-thirds of respondents reported they had been impacted by the trade war.
  • One-quarter said they had not planned any contingency plans to mitigate their risks. In fact, 40 percent of respondents in the automotive and mobility sectors said they had no contingency plans at all, despite the international nature of supply chains in that sector.
  • In response to the trade war, nearly two-thirds of respondents said they were adopting short term measures, applying for tariff exemptions, sourcing components outside of China or identifying alternative suppliers.

“While companies are recognizing the impact of the trade war, a considerable portion of respondents indicated that they have not developed sufficient contingency plans to cope with the disruptions and are adopting a wait-and-see approach,” DHL/Resilience 360 summarized.


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