What is supply chain management?

The planning and administration of acquisitions, conversion, and logistics management operations are all part of supply chain management. It also handles with the coordination of all parties (from suppliers to customers). It deals with demand management inside a corporation in this manner.

What steps can we take to identify and reduce waste in our supply chain strategy?

The first step is to examine existing processes and determine where waste is still an issue. You may, for example, compare the things you buy to your outcome to prevent expenditures. Talking to relevant managers or operators or solicit further feedback from customers or service suppliers.

What is a global supply chain?

Global supply chains are networks that cross continents and nations to source and distribute goods and services. The mobility of information and resources is one of the most important foundations.

Where do risks exist in supply chain management?

Internal risks (those under your control) and external risks (those that are beyond your control) coexist. In this regard, the following sorts of dangers are identified: Financial hazards Poor planning Regulations Environmental Socio-political Human behaviour

What is procurement in the supply chain?

One of the various branches of the supply chain is procurement. It serves as a structure for a firm to efficiently carry out all of its daily activities, monitoring the outcomes and assessing how the items that will be provided to the clients are made.

What factors contribute to the success of a supply chain?

A good supply chain must have three components: flexibility, data, and long-term planning. In this regard, some of the aspects that impact its correct operation are as follows: Maintain your adaptability. Trust data and technology Plan for the future Remember who is your end customer

What are the benefits of supply chain management?

In a nutshell, it facilitates and improves the movement of products, information, and commerce. Companies benefit from an optimised and efficient business, building better ties with partners and customers.

Why is supply chain planning so important?

Planning in the supply chain helps to simplify operations, enhance productivity, eliminate wasteful spending, and build stronger client relationships. Planning, when done effectively, may assist decrease costs associated with purchasing, manufacturing, inventory management, and transportation.

How can we gain a better understanding of our supply chain costs?

Data analysis is an excellent tool for anticipating and determining where we need to improve. For example, it assists us in optimising warehousing and storage, which is essential in a bigger supply chain strategy. This allows us to optimise space, decrease damage, reduce packing, and do a variety of other things.

What obstacles do organisations experience when attempting to improve SCM?

The supply chain is a difficult process in and of itself, and adding innovations is a problem for businesses. It's critical to move fast and to balance rising customer demand with competitive pricing. In this regard, procurement may also assist to determine whether parts of the supply chain are not competitive or to set more ambitious goals.

The Global Tariff War of 2025: Why Procurement Will Never Be the Same Again

Tariffs aren't temporary - they're reshaping how smart procurement teams sources globally.

The Global Tariff War 2025 has shaken the entire world. Just as the world believed it had survived the worst of the post-COVID supply chain disruption and the Russia-Ukraine conflict, 2025 served up another curveball: a full-blown tariff war globally. The U.S. has been putting on high tariffs, and China, Canada, and the EU are retaliating similarly. This new protectionism is changing global trade dynamics. For businesses that depend on global supply chains, adapting to the changes is essential; it's imperative.

A Timeline of Recent Tariff Escalations

The origins of the 2025 Trade Shock are in aggressive tariff actions by the U.S. government under President Trump in his second term. On April 2, 2025, "Liberation Day," the U.S. imposed sweeping tariffs on almost all imports. The significant events are:

U.S. - China Trade War Heats Up:

Beijing retaliates after Washington raises tariffs on Chinese goods to 145%,escalating the trade war impact.

U.S. - EU Relations:

Retaliatory taxes on American exports and a 20% tariff on EU imports have deteriorated relations between the two countries.

North American Disruptions:

The automotive and agricultural industries were negatively impacted by tariffs imposed by Canada and Mexico on billions of dollars worth of U.S. goods. Because of its integrated supply networks throughout North America, the automotive industry, in particular, has experienced many difficulties.

These events have caused market volatility, rising inflation, and shortages of semiconductors and rare earth minerals exacerbating the supply chain disruption already in progress.

Impact on Global Buyers & Supply Chains

These trade wars impact are directly affecting key areas such as:

Increased Costs:

Tariff has increased the prices of raw materials and finished goods, squeezing trade margins and increased costs for consumers.

Supply Chain Disruptions:

Supply chains dependent on global trade were disrupted, mainly due to production and delivery delays.

Market Volatility:

Stock markets across the globe have seen sharp falls, a reflection of uncertainty in international trade relations.

These difficulties are made worse for procurement organisations by the need to manage supply continuity and geopolitical risk.

What It Means for Procurement Heads

Procurement leaders are stepping up to the challenge during this crisis. Cost-cutting and supplier consolidation alone are not sufficient in times of uncertainty. The Global Tariff War 2025 has proven that procurement must become a strategic, forward-looking function. Some of the most significant implications are:

Risk Management:

Procurement heads need to give importance to resilience rather than cost savings by spreading out suppliers geographically.

Strategic Sourcing:

Sourcing alternative suppliers helps mitigate tariff risks—whether through local production or partners in trade-friendly countries.

Collaboration:

Improving partnerships with suppliers enables us to react promptly to issues. Communicating frequently and assisting one another can assist in addressing challenging supply chain challenges.

Why Passive Procurement is Dead

Passive procurement refers to sticking to the traditional way—reshuffling current contracts, retaining previous suppliers, and simply reacting whenever something goes wrong. That approach will no longer work.

The Global Tariff War 2025 reminded us that we must involve our businesses even more. Procurement organisations need to be leading the way to drive, and not just react to, invitations. You need to:

Monitor world markets carefully
Identify risks before they turn into issues
Be prepared to shift gears fast.

If your team isn’t adapting its procurement strategy, rising tariffs, disrupted supply lines, and unpredictable markets will quickly impact your company’s ability to operate efficiently, competitively, and profitably.

The Rise of Alternative Supply Chains

As established supply chains buckle under the weight of tariffs and geopolitics, new models are being developed:

Nearshoring:

Firms are taking manufacturing closer to home to decrease reliance on global supply chains.

Regional Partnerships:

Companies are establishing partnerships in secure regions to provide seamless supply.

Technology Integration:

Cloud-based technologies like blockchain and AI are being utilised for enhancing transparency as well as for value chain efficiency.

This shift marks a turning point—from dependency to resilience driven in large part by the Global Tariff War 2025 and its massive trade war impact.

Case Studies: Adapting to the New Reality

Apple’s Diversification Strategy:

Apple is diversifying its manufacturing footprint by investing in production facilities in Vietnam and India, aiming to reduce reliance on the Chinese market. These strategic investments are seen as a direct response to the global tariff war, especially the 125% tariffs imposed on Chinese tech imports by the U.S. in 2025, which prompted Apple to airlift over 600 tons of iPhones from India to the U.S. to sidestep the trade penalties.

Volkswagen’s Regional Focus:

Volkswagen has made regional production priorities a focus, with an emphasis on local markets in order to limit exposure to international trade disruptions. Volkswagen has invested ₹15,000 crore ($1.8 billion) in its Chakan plant, focusing on local production to reduce reliance on global supply chains.

Maersk’s Digital Transformation:

In 2025, during tariff tensions worldwide, Maersk planned to spend around $5 billion in India, with the focus on developing ports, terminals, and landside infrastructure development.

Such instances reflect procurement strategy, companies are adopting proactively in order to sail through the turbulence of global trade disruptions in 2025.

Closing Thought: Adapt or Pay the Price

2025 Business conflict exceeds only a short -term disturbance; the Global Tariff War 2025 marks a significant twist point in global procurement. Organisations that are unable to develop the risk of losing their competitive sector in a rapidly unstable global environment. To construct resilience, procurement professionals must rethink strategies, put into effect opportunity supply chains, and harness the power of era.

India’s spare parts industry is rapidly evolving, and Refteck is at the forefront—driving innovation, efficiency, and smarter procurement. In this era of supply chain disruption, partner with Refteck to turn disruption into opportunity.

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