CSCOs adapt tariff strategies and corral suppliers

May 2025

CSCOs are facing a dynamic landscape shaped by evolving tariff strategies and the need for stronger supplier relationships. Successfully navigating these changes requires CSCOs to adopt agile tactics, assess risks, and foster open communication.

The convergence of these elements underscores the importance of data-driven decision-making and enhanced visibility across the supply chain. Looking ahead, CSCOs must prioritize strategic adaptation and embrace digital fluency to maintain competitiveness.

Some key factors and considerations for CSCOs are:

• Tariff Strategies: Adapting to tariffs requires a multifaceted approach encompassing short-term tactics like stockpiling and long-term strategies such as reengineering the supply network.
• Corralling Suppliers: CSCOs must proactively assess risk within their supply base and engage with suppliers to foster collaboration and mitigate potential disruptions.
• Data and Communications: Robust data and communication standards are crucial for ensuring alignment and transparency across the supply chain, especially concerning tariff impacts.
• Labor and Skill Shortages: Labor and skill shortages require CSCOs to explore automation and AI solutions to enhance productivity and streamline operations.
• Digital Fluency: CSCOs need to champion digital transformation initiatives within their teams, ensuring that employees possess the skills necessary to leverage data and technology effectively.