For years, manufacturing companies have pursued a strategy of horizontal supply chains – relying on third-party suppliers to drive efficiencies, lower costs, and streamline operations. Many invested heavily to move away from vertically-integrated models, instead sourcing materials and components from specialized partners across the globe.
However, as the U.S. considers implementing new tariffs, manufacturers are facing a stark reality: the cost of relying on foreign suppliers is going to rise, particularly for those dependent on single-source vendors outside the country. These potential tariffs could create immediate financial pressure, forcing businesses to quickly reassess their supply chain strategies.
The Return of Vertical Integration
In response, vertical integration is regaining momentum. By bringing more manufacturing processes in-house or sourcing materials domestically, companies can mitigate exposure to trade policy shifts, improve their supply chain resilience, and gain greater control over costs and production timelines.
But making these strategic shifts requires more than just changing suppliers; it demands full visibility into supply chain dependencies, risk factors, and operational continuity.
How Technology Enables a Stronger Supply Chain
Manufacturers need real-time insights into their supplier networks, scenario modeling for disruption planning, and the ability to adapt quickly to shifting conditions. This is where technology plays a critical role. Solutions like Fusion help manufacturers map their supply chains, anticipate risks, and make data-driven decisions to navigate uncertainty – including identifying and prioritizing the need for alternate suppliers.
As global conditions continue to evolve, companies that take a proactive approach – leveraging technology to strengthen their supply chains and operational resilience – will be in the best position to adapt and thrive.
If your company is facing these dynamics, our team would be happy to help – please reach out to your Fusion Account Manager or request to speak with our team of experts.
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