Trump’s Tariffs could Trigger a Surge of AI-driven Innovations

Rarely has the world witnessed such levels of uncertainties triggered by a global tariff war – forcing companies to reconfigure their supply chains hoping and praying simultaneously that it will help them become a tad more resilient. At the same time, it has opened up opportunities for AI-driven solutions

Just 10% of IKEA products sold in the United States are manufactured in the region, making the world’s largest furniture retailer (arguably) the world’s most vulnerable company to Donald Trump’s “Liberation Day” tariffs. They are using real-time consignment tracking to avoid congested ports. The automotive industry is trying to stay calm in the midst of this tariff turbulence. For an industry that manages 30,000 high-value combustion engine car components from global suppliers, traceability is crucial. The Internet of Things (IoT) technology has become a key enabler of this effort, driving significant advancements in recent years. In the past few years, more than 12,000 new patents have been filed, with close to 400 recognized as groundbreaking innovations.

The world has rarely witnessed such levels of uncertainties triggered by a global tariff war, forcing companies to reconfigure their supply chains hoping and praying simultaneously that it will help them become a tad more resilient. The corner room is having sleepless nights trying out options like shorter term financial contracts, placing orders for smaller volume and value, rerouting consignments, real-time stock monitoring at warehouses, to extreme innovative steps like redesigning products to reduce the number of components, collaborating with supply-chain partners to share the pain and finally lobbying their governments for a resolution.

At the same time, it has opened up opportunities in AI-driven logistics solutions, digital transformations to offer real-time visibility into supply chains, and encouraging greater adoption of data-driven decision making to survive and thrive even in the midst of disruptions.

Reshaping logistics to navigate disruptions

Supply chain diversification has emerged as a pivotal strategy in the face of geopolitical tensions, technological advancements and climate disruptions. By reducing reliance on single suppliers or regions, businesses enhance their resilience and stability.  Almost 78% of logistics decision-makers consider diversification relevant, ranking it among the top three priorities in the logistics sector.

A recent Maersk survey, conducted by Statista, of over 500 senior logistics leaders reveals ten overarching trends. Five that were identified as most pivotal for reshaping logistics in the next year(s) are: supply chain visibility, the Internet of Things (IoT), supply chain diversification, financial resilience, and digital transformation. These trends empower businesses to navigate disruptions in a globalized, interconnected world. However, each industry faces unique challenges and opportunities. For example, consumer-facing industries like fashion & lifestyle or retail place high importance on ecommerce and prioritize the development of innovative last-mile logistics solutions alongside FMCG.

The impact of the trend on businesses is high, as changing supplier networks or nearshoring have a profound effect on company processes and systems. According to the experts interviewed, diversification strengthens operational resilience by reducing dependency on suppliers and enabling businesses to adapt quickly to disruptions. Developing global supplier networks helps balance operations across regions, while nearshoring strategies reduce transportation time and costs. These approaches are particularly valuable in industries like automotive, pharmaceuticals, and perishables, where reliable sourcing is critical to maintaining continuity in supply chains.

Significant investments involved in infrastructure

Expanding supplier networks requires significant investments in infrastructure, such as warehouses and workforce, and demands careful integration of systems to maintain data accuracy across regions, marking the trend’s high impact on business. Industries like automotive, which rely on just-in-time production, face additional risks due to the need for specialized components. Companies must navigate these challenges by implementing contingency plans, collaborating with logistics providers, and leveraging advanced technologies to simulate potential disruptions and test responses. The future of supply chain diversification will likely involve deeper integration with advanced technologies such as artificial intelligence and the Internet of Things to improve decision-making.

For example, IoT-based component tracking ensures just-in-time delivery, and AI systems predict disruptions and recommend alternative actions based on historical and real-time data. Nearshoring and regionalization will remain key strategies, driven by the need to mitigate risks and increase efficiency. Companies that continue to invest in diversified supply chain models will be better positioned to respond to global disruptions and maintain competitive advantages. While diversification addresses operational stability, financial resilience has become equally important in ensuring the longevity and adaptability of logistics strategies. The next trend explores how companies can strengthen their financial resilience, enabling them to weather economic volatility and maintain profitability in an increasingly dynamic global environment.

IoT is gaining momentum

The Internet of Things (IoT) is reshaping the logistics industry by providing tools and technologies that enhance supply chain visibility, operational efficiency, and connectivity. IoT is the second most highly rated trend, with 85% of respondents finding it important. IoT tools are gaining momentum as an essential industry trend. IoT-enabled sensors offer real-time visibility across supply chains, allowing logistics operators to optimize delivery routes and monitor cargo conditions. Automated stock monitoring in warehouses reduces errors and ensures optimal inventory levels. Through integrating IoT data with Material Requirements Planning systems (MRP), companies can track inventory in real-time and trigger alerts when levels drop below thresholds, maintaining seamless operations.

Sensors on fleets, containers, and vehicles provide real-time data on conditions like temperature and humidity, essential for sensitive goods such as pharmaceuticals or perishables. Immediate alerts enable operators to take corrective actions, ensuring product integrity and minimizing waste. Additionally, IoT supports de-carbonization by monitoring fuel efficiency and greenhouse gas (GHG) emissions, helping logistics companies reduce their GHG emissions footprint. Route optimization based on real-time traffic updates further enhances fuel savings and reduces GHG emissions.

In outdoor logistics operations, such as factory grounds and parking lots, IoT systems assist in locating vehicle parking spots and loading sites, reducing inefficiencies and accelerating outbound logistics. The integration of IoT with predictive analytics enables better decision-making by using historical and real-time data to forecast disruptions, such as supplier delays or adverse weather. High-value shipments equipped with IoT sensors are tracked throughout their journey, reducing losses and boosting customer satisfaction.

Despite its advantages, IoT implementation faces challenges, including integration with legacy systems, data security concerns, and significant upfront investments in technology and infrastructure. Ensuring seamless data flow from IoT devices to legacy systems requires careful planning and upgrades. Companies must also train staff to use IoT systems effectively and address cybersecurity risks by encrypting and safeguarding data. While these challenges require effort, the long-term benefits in visibility, efficiency, and resilience outweigh the initial hurdles. Looking ahead, IoT is expected to integrate more deeply with machine learning and artificial intelligence, enabling autonomous systems that manage logistics operations with minimal human intervention.

Organizations are making the move

Companies investing in IoT technologies today will gain a competitive edge and build resilient supply chains for the future.

BASF’s Global Resilience Initiative (GRI) fosters collaboration between departments and leverages digital tools, including IoT sensors, to optimize asset allocation. Access to real-time data through these tools is crucial for optimizing operations and achieving resilience. Another critical aspect of resilience is supplier collaboration and risk management, especially during disruptions. Supply chain resilience depends on reliable suppliers. For BASF supplier collaboration on a regional level reduces lead times and disruptions, minimizing the risk of raw material shortages. Its customers are also increasingly regionally oriented, so resilience has to be tailored to the specific circumstances of each region to ensure better alignment with their needs.

For the fashion industry retailers are no longer buying big quantities – they’re buying small ones and fast. The operational setup needs to adapt to this trend and become more agile. Over time, larger suppliers will need to make way for smaller suppliers. With their ability to handle fast, small-batch production, they are pivotal to the future of supply chain management.

Mercedes relies a lot on real-time tracking of its shipments. If a container is en route to any logistics center, real-time visibility can track its exact location, allowing us to plan or arrange emergency solutions if stock levels run low.  Ultimately, visibility tools allow the company to optimize stock and react quickly to disruptions, ensuring continuous production and customer satisfaction.

Resilience is part of Mercedes’ DNA. The last few years have shown, at least for Mercedes, that its supply chain is already resilient. The company kept producing vehicles during several crises. The company has invested in the supply chain internally, setting clear priorities. The time for their investments to deliver their true RoI in the face of extreme dislocation.

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The Maersk survey shows that 90% of logistics decision-makers in automotive consider IoT to be relevant, followed by supply chain visibility, which 84% identify as a key trend. Both are instrumental in driving supply chain diversification, another top trend in the industry. As these tools advance, their accuracy will improve, increasing their value for decision-makers. In the coming years, they are expected to deliver actionable insights that further optimize supplier networks and enhance overall supply chain efficiency.

Source Acknowledgement:The Logistics Trend Map 2025 from A.P. Moller – Maersk in collaboration with Statista: (https://www.maersk.com/insights/logistics-trend-map)