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?
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.
