Every supply chain professional I’ve talked to lately has the same thing on their mind: making sense of the new U.S. trade landscape. While the headlines focus on tariffs, I see something bigger brewing. In my view, the current shift is only a preview of the broader, more profound changes companies will need to navigate in the coming years.
Consider this: More than 70 countries — representing roughly 50% of the world’s population — held national elections in 2024, with voters widely choosing to oust leaders representing the political status quo. Stepping back to look at post-pandemic trends, we see an even more telling shift. Since 2020, incumbents have been voted out of office in 40 of 54 elections in Western democracies. In its analysis of the 2024 elections, the Pew Research Center notes voter discontent has been driven by economic gloom and growing dissatisfaction with the functioning of representative democracy.
Governmental sea change creates a likelihood that policies will change at a scale not seen since the 1980s. But there is an important difference between then and now: Today, we live in a far more interconnected world, where the development, production and delivery of products and services crisscross borders with greater frequency. To grasp a sense of the scale, we can think about China, whose exports to the U.S. rose by nearly $50 billion between 2020 and 2023 — and that’s just one of the many impacted countries.
What does this mean for supply chain organizations?
In the current environment, the ability to turn on a dime (pun intended) has never been more important. It is increasingly critical to expand your supplier network, adjust rates and ensure that you can accommodate changes in real time. Supply chains that proactively assess risks, modernize systems and embrace digital transformation — which often entails adopting a flexible ERP system — will be best positioned to navigate global uncertainty and turn disruption into competitive advantage.
So, how do we accomplish these goals? How do we turn this dynamic of change into an opportunity?
3 steps to adapt with a flexible ERP system
The first step is critical assessment. When I work with clients and suggest this as a first step, they commonly see it as a bit daunting. The good news: Most clients inherently know their business. They have an intuitive sense of where things are stable, where there is risk and what needs to be monitored. What’s often missing is explicit documentation of these criteria. List it out, assign values (in either currency or importance) and then review. By one measure, we have more than 6,000 thoughts per day. The simple exercise of listing challenges provides clarity, focus and, in my experience, supports what you intuitively know with rational data.
The next step is to address your legacy systems. As I’ve written about before, making change is no easy task, but the benefits far outweigh the costs. At times, hanging on to legacy systems can seem like a safe choice; however, the operational inefficiencies, potential security risks and lack of agility associated with legacy systems put businesses at risk in a volatile market. A top candidate for change is often your ERP system. If you’re not using modern, flexible enterprise resource planning, you’re likely lacking the visibility and customizations that can unlock new levels of performance in your supply chain.
Lastly, embrace the cloud. I know this can just sound like something technology companies push for — but there is sound reasoning behind it. Cloud-based, real-time systems are legitimately faster and more easily configured (and re-configured). Plus, they provide immediate access to the information you need to make critical business decisions. In a survey of more than 1,000 supply chain executives around the world, Accenture found cloud use led to a 26% increase in demand forecast accuracy and 16% reduction in supply chain operating costs. Furthermore, approximately half of the executives surveyed said the cloud has helped them successfully increase resiliency. When specifically considering flexible ERP systems, those based in the cloud offer key advantages, such as scalability to help firms easily adjust system capacity and the opportunity to minimize IT overhead.
Gaining a competitive advantage in an era of constant change
From a macroeconomic perspective, things are changing quickly — at times, daily. By leveraging real-time data and digital transformation with flexible cloud-based ERP systems, supply chain businesses can stay ahead of disruption and gain a competitive advantage. In an era of constant change, those who can pivot efficiently will be best positioned for success. And that just makes sense.
Check out our recent report to learn more about how Tecsys’ industry-specific solutions address key bottlenecks — without the cost and disruption of full-scale transformation.