SUPPLY CHAIN M
anufacturing has arguably run out of superlatives when it comes to the external pressures bending the sector out of shape. These include everything
from higher business rates, wage bills and energy costs which, when added to geopolitical tensions, serve only to stoke each other when poured into the crucible shaping a world on fire. The sector is seemingly facing its own
existential crisis of whether it can continue to ‘make it’ when it comes to the processes necessary to do so. Manufacturing and its supply chains
are only as strong as their weakest links, and many of these links require constant strengthening to convert their fragility into greater agility. According to international
management consultants McKinsey’s latest manufacturing and supply chain analysis, Decoding Disruption to Reshape Manufacturing Footprints, these fractures are driving companies to heavily regionalise production and rethink global sourcing strategies. Key strategic priorities focus on mitigating vulnerability through increased and costly inventory buffers, while also focussing attention on dual sourcing and the rapid deployment of artificial intelligence to optimise fulfilment. Its survey of manufacturers says that
many still do not have full transparency beyond their tier 1 suppliers and visibility over the next five years remains a ‘weak spot’. The ongoing war in the Middle East and
the consequential closure of the Strait of Hormuz has already hit pump prices negatively, impacting global consumer spending, but food shortages may follow as other vital commodities such as fertilisers and animal feed remain blockaded in this stand-off where only unpredictability is predictable. Change is not only a result of conflict
and war, but also the collateral damage of the politics of peace, a hard lesson learned over the last few years as a result of the geopolitical fallout of Brexit. It’s why optimising supply chains, harnessing change and expecting the unexpected needs to become a hygiene factor for global businesses.
THE FIGHT FOR AGILITY OVER FRAGILITY IN THE MANUFACTURING SUPPLY CHAIN
By Demi Crabbe, Commercial Director, IPP UK&I
Greater transparency is needed to predict an unpredictable world, argues Demi Crabbe, Commercial Director at IPP UK&I
There is evidence that business is getting
the message. At the receiving end of the supply chain, a comprehensive survey of European manufacturing firms conducted by international customs experts Customs Support Group revealed geopolitics, volatile markets and an ever-growing web of regulations are turning customs and trade compliance into a strategic priority around the boardroom table. This is particularly the case of the circular
economies, of which we as suppliers of sustainable wooden pallets across Europe, form a strategic part. Predicting the right level of repaired and repatriated pallets to the right customers in the right place at the right time and the right cost, whatever the geopolitical weather, is critical to competitiveness. But performance is defined by more than
availability and delivery alone. It’s about anticipation of change and the business continuity that flows from those scenarios. We have to be across the detail or, to paraphrase the former US Secretary of State
32 MAY 2026 | FACTORY&HANDLINGSOLUTIONS
Donald Rumsfeld, we have to recognise the known knowns, the unknown knowns and hopefully predict the unknown unknowns. To aid this knowledge, robust and resilient
logistics must depend upon reliable and relevant intelligence, the predictive partnership planning that strengthens every link in the supply chain. We’ve made changes. Our new Intelligent
Flow platform acts as a central touchpoint for engagement and communication across the supply chain. It brings together IPP’s pooling solutions, circular systems, digital capabilities and sector expertise, providing a structured way to explore how partnership supports daily operations across industries and markets. Change is the only constant, but it can
be managed through intelligence, so businesses can do everything within their power to make our supply chains less fragile and more agile.
IPP
www.ipp-pooling.com/en
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