Webinar recording: The impact of the US presidential election on purchasing: A discussion with Broetje-Automation & Neuenhauser
published on
15.11.2024
What does the US election mean for supply chain strategy? Purchasing remains flexible! In times of geopolitical tensions, tariffs and protectionist measures, purchasing in medium-sized companies is more than ever the linchpin for resilience.
In our exclusive live webinar " The impact of the US presidential election on purchasing: A discussion with Broetje-Automation & Neuenhauser " we addressed a central topic that is currently occupying many buyers and decision-makers in medium-sized companies: the consequences of the US election and the announced protectionist measures of the new administration. Karoline Rückerl (Customer Development at Tacto) discussed with Matthias Bohmann (Head of Procurement at Broetje-Automation) and Ingmar Albers (Head of Purchasing at Neuenhauser) how potential trade conflicts could affect the purchasing strategy and supply chains of medium-sized companies.
The panel discussion examined the current political developments in the USA. In particular, the announced punitive tariffs of 10 to 20% for European imports and up to 60% for products from China were identified as key risks that could affect medium-sized companies. This would not only mean an increase in costs for companies, but also potentially a long-term destabilization of international supply chains.
The experts agreed that such developments are already known from previous experiences - such as the tariffs imposed by the Trump administration in 2016 - and that medium-sized companies must prepare for them. However, the effects vary depending on the company's focus and region: While the Neuenhauser group of companies relies primarily on European and German suppliers and is therefore less affected by the direct effects of the US election, Broetje-Automation has already made adjustments in order to be able to react more flexibly to changes. The company is strategically well positioned with a location in Chicago and an expanded supplier base in the USA.
Another central aspect of the discussion revolved around China and the possibility of an escalation of the conflict between the USA and China. China plays a key role in procurement for many German companies - but dependence on Chinese suppliers brings risks. While Mr. Albers emphasized that special machine construction at Neuenhauser is less dependent on Chinese suppliers due to lower volumes, Mr. Bohmann underlined the importance of regional diversification. Both companies have aligned their supply chains so that alternative suppliers from Europe, the USA and increasingly also from India or the Middle East ensure broader security of the supply chain.
With regard to the conflict between China and Taiwan, it became clear that an escalation in the region, particularly through sanctions on components or chips, could have far-reaching consequences for the electronics industry. Here too, the participants emphasized how important it is to expand the supplier base and to have flexible alternatives for all possible scenarios in purchasing.
1. Mulitsourcing
A diversified supplier base is crucial to ensure security of supply. Selecting multiple suppliers for a product reduces dependencies and minimizes risks. This was highlighted in the webinar as a key approach to ensuring delivery capability.
2. Increase inventory levels for critical materials
Where possible, companies should increase storage capacity for essential goods and components to prevent production disruptions. However, this represents an investment risk that companies should consider depending on their financial flexibility.
3. Targeted cost analysis and flexible payment and delivery conditions
Systematic cost analyses are helpful in reducing cost pressure in the long term. This allows purchasing volumes and cost drivers to be identified and addressed in a targeted manner, for example by negotiating with suppliers on more flexible payment terms.
4. Transparency and risk reduction:
Tools like Tacto offer the advantage that companies can make risks across the entire supply chain transparent and manage them in a targeted manner. A central data platform helps to quickly get an overview of the relevant key figures of all suppliers and make strategic decisions accordingly.
The tense geopolitical situation and increasing protectionism pose major challenges for SMEs in purchasing. The key discussions in the webinar made it clear how important it is to respond flexibly to global changes while at the same time taking strategic measures to make supply chains more resilient and cost-efficient. In this context, SRM (Supplier Relationship Management) systems are becoming increasingly important, enabling companies to use relevant data effectively, identify risks and reduce costs.
In the future, flexibility and adaptability in purchasing will be crucial to successfully position companies on the global market, even under difficult conditions.
