What does the US election mean for supply chain strategy? Procurement remains flexible! In times of geopolitical tensions, tariffs and protectionist measures, Procurement is becoming the linchpin for resilience in SMEs more than ever.

In our exclusive live webinar"The impact of the US presidential election on Procurement: A panel discussion with Broetje-Automation & Neuenhauser", we addressed a key topic that is currently on the minds of many buyers and decision-makers in the SME sector: the consequences of the US election and the protectionist measures announced by the new administration. Karoline Rückerl (Customer Development at Tacto) discussed with Matthias Bohmann (Head of Procurement at Broetje-Automation) and Ingmar Albers (Head of Procurement at Neuenhauser) how potential trade conflicts could affect the purchasing strategy and supply chains of SMEs.

‍
‍

Geopolitical developments: The new challenges for Procurement

‍

The current political developments in the USA were scrutinized in the discussion round. 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 SMEs. This would not only mean an increase in costs for companies, but possibly also 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 SMEs need to prepare for them. However, the impact varies depending on the company's focus and region: while the Neuenhauser Group relies primarily on European and German suppliers and is therefore less affected by the direct impact 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.

‍
‍

China as a procurement market: risks and opportunities for SMEs

‍

Another key 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 entails risks. While Mr. Albers emphasized that Neuenhauser's special machine construction is less dependent on Chinese suppliers due to small quantities, Mr. Bohmann underlined the importance of regional diversification. Both companies have aligned their supply chains in such a way that alternative suppliers from Europe, the USA and increasingly also from India or the Middle East ensure that the supply chain is more broadly secured.

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 Procurement scenarios.

‍

Recommendations for Procurement: multi-sourcing and risk management

‍

1. multi-sourcing

‍

A diversified supplier base is crucial in order to ensure security of supply. By selecting several suppliers for a product, dependencies can be reduced and risks minimized. This was emphasized in the webinar as a key approach to ensuring supply capability.

‍

2. increase in stock levels for critical materials

‍

Where possible, companies should expand storage capacity for essential goods and components to prevent production interruptions. However, this represents an investment risk that should be considered by companies 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 targeted, e.g. by negotiating more flexible payment terms with suppliers.

‍

4. transparency and risk reduction

‍

Tools such as Tacto offer the advantage that companies can make risks transparent across the entire supply chain and manage them in a targeted manner. A central data platform helps to quickly gain an overview of the relevant key figures for all suppliers and make strategic decisions accordingly.

‍
‍

Conclusion & outlook

‍

The tense geopolitical situation and increasing protectionism pose major challenges for SMEs in Procurement. The central discussions in the webinar made it clear how important it is to react flexibly to global changes and at the same time take 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 Procurement will be crucial in order to position companies successfully on the global market, even under difficult conditions.

In our exclusive live webinar "The impact of the US presidential election on Procurement: A panel discussion with Broetje-Automation & Neuenhauser" with Karoline Rückerl (Customer Development at Tacto), Matthias Bohmann (Head of Procurement at Broetje-Automation) and Ingmar Albers (Head of Procurement at Neuenhauser) we shed light on how Procurement can prepare for geopolitical uncertainties.