Tariff volatility is driving a structural regional reset in global supply chains in 2026, per Genpact’s Tanguy Caillet. Companies are abandoning single-country sourcing and adopting dual- and triple-supplier strategies to protect margins and flow. Pandemic-era investments in visibility and scenario planning enabled rapid response — eliminating panic-driven advisory demand. Firms now prioritize resilience over cost alone, redesigning logistics rather than relocating factories, and deploying AI only atop modernized data infrastructure. The U.S. faces credibility challenges amid policy instability.
According to www.freightwaves.com, tariff volatility is accelerating a structural regional reset across global supply chains in 2026 — with multinational shippers abandoning single-country sourcing and rapidly scaling dual- and triple-supplier strategies to mitigate geopolitical and trade-policy risk.
From Panic to Preparedness
Tanguy Caillet, Genpact’s global supply chain lead, told FreightWaves that companies are far more resilient to tariff swings than many expected — not because tariffs have stabilized, but because pandemic-era investments in digital infrastructure created foundational readiness. “I was very surprised,” Caillet said. “We actually sold not one advisory project on tariffs with clients, though we tried.” That absence of reactive consulting demand reflects widespread adoption of control towers, supplier-risk monitoring systems, and scenario-planning capabilities since 2020.
Reshaping Sourcing Architecture
Caillet emphasized a decisive pivot away from decades-old procurement logic centered on supplier rationalization — i.e., consolidating spend with fewer vendors for cost leverage. That model, he noted, bred fragility: overdependence on specific factories or countries left networks vulnerable to disruption. Now, firms are actively eliminating single-source suppliers and treating supplier portfolios like financial portfolios — building in hedges, alternative pathways, and built-in optionality.
- Regional realignment does not always require relocating manufacturing — which is costly and slow — but instead involves redesigning logistics routes, leveraging bonded warehouses, and using tariff-friendly trade corridors
- Some companies accept higher transportation costs if duty savings offset the increase
- The shift reflects a broader deglobalization trend: supply chains are becoming “a bit less interdependent,” with stronger regional anchors linking Africa, Latin America, Europe, and Asia in new configurations
Technology as Orchestration Enabler
Caillet stressed that AI’s value hinges on foundational data modernization — clean, integrated procurement systems, supplier relationship management tools, and unified planning platforms. Only then can AI connect external signals (e.g., tariff changes, geopolitical alerts) with internal operational data to model impacts in near real time. “It’s all about this orchestration layer at the top,” he said. He warned that without parallel process redesign, AI initiatives often fail: “There is no artificial intelligence without process intelligence.”
2026 Outlook: Volatility as Baseline
Caillet forecasts persistent geopolitical disruptions, shifting trade alliances, and reconfigured trade routes throughout 2026. He observed that “the power is moving, the center of gravity, manufacturing, consumers is moving around, is changing in the world.” Notably, the U.S. market faces a credibility challenge among some global firms due to policy instability — meaning even tariff rollbacks may not trigger reversion to pre-2020 globalization models, as underlying volatility remains embedded in trade policy.
Source: FreightWaves
Compiled from international media by the SCI.AI editorial team.
