Global Supply Chains Thrive on Alliances

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STARTER STATS

• Trade wars and tariffs can slash profits by 20-30% without warning

• Strategic alliances like joint ventures can increase supply chain resilience by 8x

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UBC Okanagan researchers have isolated the backbone of resilient global supply chains: strategic alliances.

In the midst of trade wars and political disruptions, the study finds that strong partnerships, like joint ventures or long-term contracts, far outperform geographic diversification in protecting businesses from tariffs and quotas.

The research team found that deliberate trade barriers require deeper cooperation, although spreading operations across countries helps address natural disasters like storms or pandemics. The findings suggest that companies and governments build alliances through co-production and shared logistics networks. These partnerships slash disruption costs, so goods keep flowing during times of turbulence.

“Global supply chains are fragile, but a single strategic alliance can boost profits by 50% in the worst scenarios. Companies that prioritize trust-based relationships will keep markets stable and customers happy.”

— Dr. Ahmadi Digehsara

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