Logistics Matters with DC VELOCITY
Guest: Maggie Barnett of LVK on managing supply chains with on-again off-again tariffs; The logistics economy picks up speed; The challenges of applying Generative AI
Feb 7, 2025
Maggie Barnett discusses the recent turmoil surrounding tariffs, especially the unpredictable changes affecting Canada, Mexico, and China. She offers insights on how supply chains can adapt in this fluctuating environment. The logistics sector is experiencing notable growth, driven by rising inventory and economic activity. Meanwhile, the adoption of generative AI is on the rise, yet companies face challenges in achieving significant productivity gains. The conversation highlights the need for better AI integration and the evolving role of third-party logistics providers.
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Quick takeaways
- The recent uncertainty in U.S. tariffs, especially for Canada and Mexico, necessitates that supply chains adopt flexible strategies and reassess logistics operations to mitigate potential costs.
- Despite widespread adoption of generative AI in supply chains, organizations face challenges in productivity and ROI, emphasizing the need for innovative applications and employee training to achieve better outcomes.
Deep dives
Impact of Tariffs on Supply Chains
The recent tariff announcements, particularly those affecting Canada and Mexico, have created significant uncertainty for U.S. supply chains. While these tariffs were postponed, companies must still prepare for potential implementation, as the timelines are short and unpredictable. Many U.S. businesses, particularly in e-commerce, have traditionally relied on strategies to avoid tariff expenses through models that benefit from de minimis exemptions. With the possibility of these exemptions being removed or adjusted, companies are now required to reassess their logistics strategies and anticipate additional costs associated with incoming tariffs.
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