Is the automotive logistics and supply chain resilient to disruption?
Shifting geopolitical dynamics including tariffs and trade wars, inflation and cost pressures, unpredictable demand cycles, changing raw material dependencies and restrictions, and supplier distress are creating a constantly volatile landscape for automotive logistics and supply chain companies. But with this risk comes opportunity for better planning, preparation and resilience. Is the industry ready for the risks still to come this year?
Supply chain resilience in the face of risk
Image source: ChatGPT
In the
first month of 2026 alone, the industry has been faced with major challenges.
The trade relations between the US and many countries have become more strained.
Most recently, US president Donald Trump has U-turned
on additional tariffs on eight NATO nations, has threatened Canada
with 100% tariffs and increased the levies
set on South Korea. With so much uncertainty in US trade relations, other nations
have started agreeing trade deals between themselves to boost flows elsewhere,
including the EU
and India’s historic trade deal.
Suppliers and
logistics providers are facing financial difficulties, with the likes of Bosch bracing
for a profit slump, and Standard
Forwarding Freight suspending operations and reducing its workforce.
And for
added measure, a devastating
winter storm has hit large parts of the US, affecting Honda and forcing
other OEMs including GM and Nissan to keep flexible and adjust operations as
needed.
With
pressures unlikely to ease quickly, the question for 2026 is whether this
uncertainty can continue to be used as a prompt for better-informed, more
robust decision-making.
How
prepared is the supply chain?
Many firms
are still underprepared for supply chain challenges, according to a
cross-industry survey by Gartner which found that only 29% of supply chain organisations
have built the necessary capabilities to deliver on future performance.
The survey
found that competitive characteristics included agility, resiliency, regionalisation,
integrated ecosystems and integrated enterprise strategy.
According
to Pierfrancesco Manenti, vice-president analyst at Gartner Supply Chain: “Leaders
shared a commitment to preparation through long-term, deliberate strategies,
while non-leaders were more often focused on short-term priorities.”
He added: “Leaders
see technology as an enabler to their overall business strategies, while
non-leaders more often invest in technology first, without having fully
established their foundational capabilities.”
Turning
risk into resilience through digitalisation
“The future
of supply chains will be defined by agility and intelligence,” said product
identification firm Loftware’s president and CEO, Jim Bureau.
The company,
after surveying more than 400 supply chain professionals across 55 countries, found
that there has been a decisive shift towards connected supplier networks,
real-time packaging intelligence, and AI-enabled automation as firms work to
strengthen resilience and stay competitive in an unpredictable global
landscape.
He said
that companies using connected networks, cloud platforms and AI-driven insights
“are not just surviving disruption but turning it into opportunity”.
Bureau added:
“By modernising today, companies can anticipate challenges act in real time,
and create supply chains that are smarter, faster and ready for whatever comes
next.”
We will be discussing resiliency as a competitive advantage in our upcoming livestream, 'Building the automotive supply chain of 2026,' featuring insights from Marion Gillich, head of supply chain resilience management at Daimler Truck. Register to watch it here.
