How supply chains are learning to flow with disruption
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As tariffs shift weekly and demand forecasts lose reliability, automotive supply chain leaders at ALSC Global 2025 revealed how they're replacing rigid planning with flexible frameworks, real-time data systems, and deeper collaboration.
The era of fixed production schedules and predictable supply chains is "well and truly gone". That was the reality behind discussions at the recent ALSC Global conference, where leaders from OEMs, suppliers, and logistics providers got together to analyse the industry's complex new normal.
The automotive inbound supply chain is navigating, what Ian Slaven, vice-president of global sales and vertical lead of automotive at Kuehne+Nagel called a "poly crisis" of geopolitical shifts, technological disruption and volatile demand, all while executing a massive transition to EVs.
Across the discussions, a clear consensus came out - the path forward lies not in resisting unpredictability, but in embracing it. Success now depends on deeper collaboration, advanced technology, and a fundamental shift from optimising for pure efficiency to building robust, resilient networks designed to withstand constant change.
Embracing the ‘slushy’ reality
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The core of this new reality starts at the source - the OEM production schedule. Nikki Logsdon, director of demand and supply planning and propulsion and vehicle scheduling at GM set the tone by confirming a major operational shift away from certainty.
"We used to have frozen windows," she noted. "We are calling them slushy. No more frozen.”
This "slushy" world demands a new set of principles, as outlined by Dr Ulrich Wieland, vice-president of production control and logistics at BMW Manufacturing Co. He detailed seven foundational principles for building resilience, beginning not with logistics, but with the product itself: designing flexible platforms that can adapt to market swings between EVs and ICE vehicles.
Other principles include strong localisation, scenario planning in the early design phase, and a relentless focus on operational excellence to eliminate waste.
"To really take the different scenarios and extreme scenarios seriously, and to consider them early on and based on these extreme cases, to then decide on which is the most robust solution, that's the real challenge," Dr Wieland stated.
This strategic change requires a new balance between competing priorities. For years, the industry focus was efficiency above all else.
"It doesn't work as well now as it did then, and now it has to be a mix of efficiency and resiliency," stated Slaven. "Resilience takes planning, it takes money, and it takes will".
That "will" means moving beyond a "quarter to quarter kind of march" to make longer-term strategic decisions.
To address this, GM is implementing range forecasting instead of single data points. "Instead of saying next year it's going to be 10,000 [units], we might say it's going to be between 9,000 and 11,000 because we're going to be 80% right. But just that flexibility alone allows us to capacitise to the higher number but then operationalise to a lower number."
Technology as the enabler, data as the compass
To navigate this constant state of unpredictability, companies are deploying sophisticated tools to distinguish true signals from background noise. Ryan Bertul, vice-president of automotive supply chain and strategic sourcing at Flex, described how his company uses a system called Pulse, a data collector that creates a real-time dashboard of the entire supply chain.
This allows Flex to simulate the impact of new tariffs or, for example, instantly identify which suppliers and parts could be affected by a typhoon in Asia.
"It's really tough to predict some of those challenges and disruptions, but when they do come about, just having the right systems in place to try to help you triage those areas," Bertul explained.
This data-driven approach is allowing the industry to become more proactive. Ben Steffes, vice-president of solutions and strategy, managed transportation at RXO, noted that access to aggregated data has enabled shippers to use the current freight recession to introspectively analyse their supply chains and build better strategies.
"There's an expectation that we are coming to them with proactive solutions," Steffes said, highlighting a shift where 3PLs are expected to be consultative partners, not just execution agents.
Patrick Bauer, vice-president of supply chain at IAC Group, detailed how his team’s analytical tools create a "customer demand waterfall" to predict what OEMs will actually build versus what their releases state. This allows them to cascade more accurate requirements to their own supply base.
The goal now is to expand this visibility externally by partnering with brokers and other providers to "share information, share data, so that we can provide a full picture of what's going on".
Beat Simon, COO of logistics at DP World discussed its implementation of digital twins and AI across hundreds of contract logistics sites, while noting practical realities about humanoid robots: "I thought they don't have any coffee break. But unfortunately, after two hours the battery is flat, so they also have the coffee break."
Slaven described Kuehne+Nagel's digital twin capabilities for scenario planning: "We do have a digital twin that we've been able to stand up, that goes over the top of our entire global network and pulls in everything that we're doing on a daily basis so that we are able to put in different scenarios."
Collaboration and trust: The new foundation of operations
A recurring theme across all sessions was the critical importance of collaboration and transparent communication as a core requirement.
Ron Glowinsky, vice-president of global sales at CNW emphasised the fundamental nature of trust: "If there is no trust, there is no business. It's all about relationships but also providing the service. So, if the customers do not trust you, you're out of business. That's why we say failure is not an option."
On the operational side, Glowinsky highlighted communication as the primary factor in supply chain failures: "Communication…is the most essential part. And if you check, 95% of the mistakes or failures are coming from miscommunication."
Additionally, DP World’s Simon emphasised that collaboration must extend beyond transactional relationships. He said that "the tenor there is actually going from a transactional relationship to a more partnership [type of] approach. You're not going to be competitive as an OEM if you do not have an agile supply chain".
Dr Wieland shared a concrete example of when communication breaks down: "A couple of weeks ago we were in a situation at a sequence supplier. He had an inventory loss for a tiny 3 cent part which he sources from China. And they realised the inventory loss on a Saturday and unfortunately, they did not grab the phone. And this made us then shut down one assembly hall for entire shift."
He shared a powerful insight into handling a crisis like a production line stoppage. The immediate reaction must not be to assign blame. "The first reaction must be, how can we help?" he advised.
"And then afterwards, of course, you do a thorough question on how it could happen. It's really about how you react in crisis situations, and that you don't unnecessarily increase pressure".
Mitigating new risks: From tariffs to supplier viability
While the industry has become accustomed to challenges, the nature of risk continues to evolve. Beyond geopolitical events, the sheer volatility of demand is a primary concern.
"The thing that really keeps me up at night is the demand cycles that we're seeing right now where the forecast variability is like something I haven't seen in many years," admitted Bertul, pointing to unpredictable mix shifts between EV, ICE and hybrid models.
Supplier viability has also emerged as a critical risk. Tony Stinsa, head of inbound and outbound logistics at International, explained that while the post-COVID era of capacity-constrained suppliers has passed, a new problem has arisen.
"This morning, we had a major supplier announce bankruptcy and it's going to affect the whole industry," Stinsa revealed. "It's still about chasing a part, but it's for a whole different reason".
In response, companies are adapting their procurement and network strategies. Greg Megerian, global director of logistics procurement at Harman International, noted that tariff pressures are making otherwise change-resistant parts of the business more open to new cost-saving ideas. Dr Wieland addressed the cost-resilience balance directly: "There are some cases and some situations where this is a contradiction. And there are other elements which particularly lay in the way you design the process itself, which are not a contradiction, but where you have a synergy."
He cited BMW's five-day order flexibility window as an example which allows changes to vehicle orders up to five days before production begins. This capability proved critical during the semiconductor crisis and ultimately enabled a highly efficient system with low inventory levels, strong flexibility and high operational efficiency.
Building the supply chain of tomorrow
Looking ahead, industry leaders emphasised the need for sustained focus on flexibility and collaboration. Stinsa highlighted the importance of protecting strategic work from daily chaos: "I have to budget time for future-looking strategic priorities, the cost reduction projects and the things that are not just about daily change."
The consensus across sessions was clear: while uncertainty has become permanent, the industry is developing more sophisticated tools, closer partnerships, and more flexible processes to navigate it.
Success requires moving beyond reactive firefighting to proactive scenario planning, backed by real-time data systems and trust-based relationships across the entire supply chain ecosystem.
As Logsdon concluded about GM's transformation efforts: "We know that supply chain is going to have such a major transformation the next three to five years... we're excited about what the future looks like."
"It'll be exciting to get some integrated tools that will allow us to be able to react quickly and make really better business decisions and give our leadership options," Logsdon added.
