Tariff volatility is driving a structural regional reset of global supply chains in 2026, per FreightWaves. Genpact’s Tanguy Caillet reports companies are abandoning single-country sourcing for dual- and triple-supplier strategies, leveraging bonded warehouses and trade corridors instead of relocating factories. Pandemic-era investments in visibility and scenario planning enabled rapid internal responses — resulting in zero tariff-advisory project sales by Genpact in early 2026. AI’s effectiveness depends on foundational data integration, not standalone deployment. Caillet forecasts sustained geopolitical disruption and regional network formation across Africa, Latin America, Europe, and Asia — with U.S. policy instability undermining sourcing confidence.
According to www.freightwaves.com, tariff volatility is accelerating a structural regional realignment of global supply chains in 2026 — moving decisively away from single-country sourcing toward dual- and triple-supplier strategies and regionally anchored networks.
From Cost Optimization to Resilience by Design
Genpact’s global supply chain lead, Tanguy Caillet, told FreightWaves that companies are abandoning decades-old procurement models centered on supplier rationalization and cost-driven consolidation. Instead, firms are actively eliminating single-source dependencies to build resilience. As Caillet explained, the pandemic-era investments in control towers, supplier-risk monitoring, and scenario planning have enabled rapid, internal responses to tariff swings — so much so that Genpact reported zero advisory projects sold on tariffs in early 2026, despite active outreach.
Regionalization Without Relocation
Caillet emphasized that regional reset does not always mean relocating factories — a capital-intensive and time-consuming process. Rather, companies are redesigning logistics routes, leveraging bonded warehouses, exploiting tariff-friendly trade corridors (e.g., USMCA, AfCFTA), and accepting higher transportation costs if they reduce duty exposure. Some are treating supplier portfolios like financial portfolios — embedding built-in hedges and alternative pathways.
Technology as Orchestration, Not Add-On
Caillet stressed that AI’s value hinges on foundational data readiness: clean, integrated procurement systems, planning tools, and supplier relationship management platforms. Only then can AI connect external signals — such as tariff changes or geopolitical alerts — with internal data to model impact scenarios in near real time. He underscored a key principle:
“There is no artificial intelligence without process intelligence.” — Tanguy Caillet, Global Supply Chain Lead, Genpact Limited
2026 Outlook: Volatility as Baseline
Caillet forecasts continued geopolitical disruption, shifting trade alliances, and reconfigured global trade routes throughout 2026. He noted that manufacturing and consumer centers are redistributing globally — linking Africa, Latin America, Europe, and Asia in new configurations. The U.S. market, he suggested, faces a credibility challenge among some global firms due to persistent policy instability; even if certain tariffs are rolled back, many companies will hesitate to revert to pre-2020 sourcing models because underlying volatility remains.
- Genpact Limited (NYSE: G) employs 125,000 people across 35+ countries, serving 800 clients
- Headquartered in New York, with significant operations in India
- Shift reflects hardening of trends begun during COVID — now evolving into long-term structural change
This article is AI-assisted and reviewed by the SCI.AI editorial team.
Source: FreightWaves
