Distributor and supply chain expert ACI Group has highlighted the importance of building resilient supply chains and investing in niche alternative ingredients and materials to combat economic uncertainty.
The markets have been uncertain following the US President’s decision to impose heavy tariffs on Canadian, Mexican, and Chinese goods. Donald Trump openly discussed the prospect of further tariffs including export tariffs, on other nations. Economists have expected these moves to push prices worldwide as countries retaliate with tariffs.
“It’s hard to overstate how out-of-the-ordinary this situation is for businesses, but it’s likely just the beginning. The volatility of normally stable market indicators like corn futures highlights the fragile state of business and investor confidence right now. But the worst thing is the uncertainty,” said Karsten Smet, CEO of ACI Group.
“To be frank, the things Trump says bear little relation to the things he does, so the tariffs could roll back on certain products next week, or they could increase over the next four years.”
Smet said that whether these tariffs have been rolled back or expanded, uncertainty will never really go away, and it will continue to do damage. Businesses must adapt quickly.
“I’m sure many will have a few choice words for the President now, but the most important one is ‘contingency’. At ACI, we know just having a Plan B isn’t enough – Plans C through to Z will be needed to keep value chains running smoothly.”
She added that what we thought of as ‘staple’ ingredients may not be ‘staple’ for much longer. It’s never been more critical to partner with distributors who can connect manufacturers with niche ingredients and alternative suppliers.
Distributors can help offset a lot of this uncertainty by using the robust contingencies and cutting-edge digital solutions already in place.
ACI Group is known for its Supply Chain Manager tool, which uses AI-powered digital systems to provide cutting-edge insights and forecasts about supply chain issues worldwide.
“We know we can’t predict everything. But we can’t predict that we can adapt quickly using the insights gained from tools like Supply Chain Manager, plus our 30 years of experience in the field. It’s going to be a bumpy ride for the next few years, but the businesses that come through it the strongest will be the ones with strong distribution partnerships in place.”
