At Manifest Vegas this year, we caught up with some of the biggest names in the logistics space, hoping to find out not just how they plan to mitigate the challenges of an increasingly fraught geopolitical and economic climate, but also how they plan to ensure the supply chain will continue to deliver value for the business as a whole.
It probably shouldn’t come as a surprise that resilience was the word we heard repeated by virtually everyone in the sector, from freight haulers to third-party solutions providers. Everyone’s trying to figure out how to weather a less predictable world; it’s no longer a matter of if, but when and where disruption will hit the supply chain, so figuring out how to mitigate its effects is key.
“Geopolitical tensions, fluctuating regulations, and economic uncertainties are poised to create complex pain points along the supply chain in 2025,” warns Gene Welsh, CTO at logistical services provider MODE GLOBAL. For Welsh, the year ahead threatens “trade wars, tariffs, and shifting alliances” — all of which have the potential to disrupt supply chains, something he notes will both increase costs and cause delays.
Tariffs, uncertainty and the unpredictable US
“One of the biggest uncertainties shaping supply chains in 2025 is trade policy instability, particularly in North America,” said Tony Zasimovich, Global Retail Vertical Lead at DP World.
From Trump Tariffs to the activities of Elon Musk’s Department of Governmental Efficiency (DOGE) making sweeping cuts to the federal government, the regulatory landscape facing organisations based in or doing business with the US is looking increasingly complicated.
The Trump administration’s protectionist policies are part of an emerging picture which, According to Zasimovich, raise “concerns about new tariffs, shifting rules of origin, and increased compliance costs, creating a more complex regulatory landscape for cross-border trade.” He adds: “At the same time, the implementation of higher US tariffs on China, Canada, and Mexico is forcing businesses to reassess their sourcing and transportation strategies. While some are diversifying through friendshoring and multi-sourcing, these shifts can introduce longer transit times, increased costs, and new regulatory hurdles.”
In response to these challenges, Mark Kunar, CFO and Chief Strategy Officer at DHL agrees that “resiliency will be at the forefront for organisations in 2025,” noting that, logistics networks, “whilst previously constructed for efficiency and just-in-time processes,” will need to be restructured to provide “enhanced resiliency and regulatory compliance” in order to stay afloat. “Geopolitical tensions, regulatory changes, and economic pressures create uncertainty for both our customers and their consumers and can lead to increased costs, compliance risks, and supply chain disruptions. Trade and tariff disputes will impact the cross-border flow of goods, creating a strain on sourcing strategies and the timeliness of bringing goods to market.”
Regionalisation as a path to resilience
While none of this necessarily represents a new attitude — people were already talking like this a few months into the COVID-19 pandemic — the discussion at this year’s Manifest Vegas event felt different. Rather than patch and tweak and make older supply chain models sturdier, it’s starting to feel as though the foundational structures that make up global trade networks are beginning to shift. The rulebook is being rewritten.
If you talk to Zasimovich, he’ll tell you that 2025 is going to be “a year of strategic supply chain realignment, driven by shifting trade policies, economic uncertainty, and the growing role of regionalised logistics.”
Driven by the mass-levying of tariffs against China, Mexico, and Canada, the spiralling trade war threatens to eclipse the first one waged by the Trump administration during 2016. In response, nearshoring has become, “one of the biggest transformations underway” in the logistics space, especially in North America. Zasimovish points out that, with the US’ share of imports from China dropping significantly—from 21.6% in 2017 to 15% in 2025—organisations are looking to shift their supplier ecosystems closer to home. Of course, profoundly restructuring the way that goods and materials move around the world isn’t a straightforward process.
“2025 will be a year of strategic supply chain realignment, driven by shifting trade policies, economic uncertainty, and the growing role of regionalised logistics” — Tony Zasimovich, Global Retail Vertical Lead, DP World
For Zasimovich, 2025 therefore presents “a major growth opportunity in nearshoring,” with nations like Mexico, Poland, and Vietnam capitalising on their relative neutrality (as much as anyone can be neutral in a Trump-dominated trade landscape) to cement their roles as regional manufacturing and logistics hubs. He adds that these shifts aren’t “just about proximity” but rather the process of “building faster, more resilient supply chains that minimise risks from geopolitical tensions and trade disputes. By investing in freight networks and contract logistics services, DP World is helping businesses adapt to evolving trade dynamics and capitalise on nearshoring momentum.”
He adds that the shift we’re seeing is rooted in more than just organisations’ reactions to tariffs and political instability. At the same time, businesses are restructuring their supply chains for “faster lead times, reduced transportation costs, and supply chain resilience.” Bringing operations closer to key markets is a natural and obvious part of that process.. However, he adds that the transition isn’t straightforward. “Nearshoring introduces new regulatory, infrastructure, and labor cost challenges, which means companies will need to invest in supplier partnerships, digital integration, and regional warehousing to fully capitalise on this trend,” Zasimovich adds.
Nurturing resilience in the supply chain of the future
Reflecting on the increasing emphasis supply chain and logistics companies are placing on resilience, Andy Moses, senior vice president of solutions and sales strategy at Penske Logistics notes that “among the answers is having clean data, system integrations and consistent process management — all of which enables supply chain managers to respond faster to needed changes. Finally, having logistics provider relationships that are mutually beneficial in all business cycle positions, with shippers having access to capacity and resources when they most need it.”
Kunar agrees that “technology and automation will also be foundational to designing agile and flexible logistics that can withstand the complexity of dynamic geopolitical environments.” However, at the same time, “customers will always want value.” Despite the increasingly complex nature of global logistics, Kunar reflects that “customers are asking: ‘How can a logistics partner drive value in transportation, warehousing, packaging, and inventory across their supply chain?’”
Leaning on the ecosystem
According to Moses, partnerships and collaboration in the ecosystem are going to be at the heart of driving resilience and value as “shippers continue to seek reliable partners to take over the management and execution of complex logistics functions.”
For example, in the retail sector — an industry with an especially complex, fast-moving supply chain and narrow margins —ReturnPro example — finding new ways to mitigate cost/losses with partnerships in the supply chain, like ReturnPro, which is using AI and machine learning to mitigate lost revenue in the retail sector.
“At every critical point – return, touch, and resale – AI determines the most profitable path for each item” — Sender Shamiss, Co-Founder and CEO, ReturnPro
A recent report from NRF estimates the total cost of retail returns at around $890 billion in 2024. Experts expect that number to climb even higher this year. To help recover their net margins, retailers are looking to their supply chain partners. Companies like ReturnPro leverage AI to analyse large amounts of data in real-time, streamlining return authorisations and predicting the most efficient reverse logistics routes, as well as picking up trends in the reasons for consumers returning items.
“At every critical point – return, touch, and resale – AI determines the most profitable path for each item, calculating total costs and outlining the optimal steps to maximize recovery and extend product life,” says ReturnPro Co-Founder and CEO, Sender Shamiss. The company also uses machine learning algorithms to drive its predictive analysis, which help manage returns and maximise resale value. “By analysing historical data, product conditions, and market trends, these algorithms forecast return rates, identify the best recovery options – such as restocking, refurbishment, or resale – and predict an item’s resale value with precision,” explains Shamiss. “This allows retailers to deploy dynamic pricing strategies and efficient return-to-vendor processes.”
DHL is also exploring the supply chain after the point of sale as an area for logistics companies to create value, observing that there’s “tremendous potential in reverse logistics”. He highlights DHL’s recent acquisition of Inmar Supply Chain, which he argues “will allow us to better streamline the returns process and address circularity within our sectors.”
A more resilient, digitally enabled supply chain
ReturnPro wasn’t the only organisation at Manifest Vegas highlighting the potential for smart, AI and ML-powered solutions to the supply chain sector’s problems. Welsh from MODE Global added that he expects artificial intelligence, machine learning, and the Internet of Things (IoT), “to further integrate into logistics operations, enhancing automation, real-time tracking, and predictive analytics,” as 2025 continues. “These innovations will drive efficiencies and enable organisations to meet the increasing demands for faster, more reliable, and sustainable delivery options.”
There’s little way to tell exactly what the year ahead will bring in terms of pain points and challenges. However, logistics and supply chain companies are unanimously preparing to leverage technology and their partner ecosystems to drive resilience and create new value at all points of the supply chain — even places that previously escaped notice.
- Risk & Resilience
