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 reveals that strong partnerships — like joint ventures or long-term contracts — far outperform geographic diversification when protecting businesses from tariffs and quotas.

The research led by Dr. Amin Ahmadi Digehsara showed that although spreading operations across countries help address natural disasters like storms or pandemics, deliberate trade barriers require deeper cooperation.

“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

The findings urge companies and governments to build alliances through co-production and shared logistics networks. These partnerships slash disruption costs, so goods keep flowing during times of turbulence.

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