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Resilience through diversification: Strategic realignment of global supply chains in the geopolitical area of ​​tension

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Published on: April 8, 2025 / update from: April 8, 2025 - Author: Konrad Wolfenstein

Resilience through diversification: Strategic realignment of global supply chains in the geopolitical area of ​​tension

Resilience through diversification: Strategic realignment of global supply chains in the geopolitical area of ​​tension - Image: Xpert.digital

Future of Logistics: Location decisions in times of global uncertainties

In a time of increasing geopolitical uncertainties and trade conflicts, the strategic repositioning of supply chains and logistics locations is becoming more important. The current development shows that companies are increasingly relying on diversification in order to reduce dependencies and increase their resistance to external disruptive factors. At the same time, a re -evaluation of traditional logistics locations takes place, whereby strategic advantages such as central location within Europe, optimal transport connections and customer proximity are among the main criteria. The case of the new Grohe logistics center in Porta Westfalica illustrates how companies optimize their supply chains through strategic location shifts and create competitive advantages.

Geopolitical uncertainties as a driver for supply chains resilience

The current geopolitical tensions between the European Union and the United States impressively illustrate the need for resilient supply chains. In response to the latest decision by US President Donald Trump to raise tariffs to European steel and aluminum, the EU plans to retaliate tariffs from 25 percent to selected US products. These tariffs could come into force on May 16 and affect a wide range of goods. EU Commissioner Maroš Šefčović emphasized the preference for negotiations, but at the same time signaled the willingness to use every means to protect the EU from the effects of US tariffs.

As a result of this emerging trade conflict, economic experts forecast a weaker trade exchange and rising prices. The EU Commission is preparing for targeted countermeasures that could affect US products worth up to $ 28 billion. These developments illustrate how quickly trade conditions can change and what serious effects this can have on global supply chains.

The concept of multidimensional supply chains diversification

In view of this volatility, more and more companies are looking for opportunities to reduce their dependencies. The 4-dimensions model offers a strategic approach for this to diversify the supply chain:

Volatility, disruptions, interruptions - past, current and future crises burden the supply chains. Numerous companies have recognized that dependence on a certain country, a single trade route or a singular source of supply increases the risk of supply chains.

This knowledge leads to a departure of linear supply designs in favor of multi -dimensional structures. The 4-dimensions model developed by DHL supports companies in the strategic evaluation of their supply chains and helps develop both tactical and strategic scenarios. The model can be applied to individual product supply chains, complete supply chain networks and entire business units or markets.

Suitable for:

  • Work-path logistics and efficient reusable management-the optimization of logistics processes and supply chainsWork-path logistics and efficient reusable management-the optimization of logistics processes and supply chains

Return on investment through diversification

The investment in diversified supply chains offers companies a significant return on investment. Optimized processes and reduced downtimes can reduce operating costs and increase sales. Modern logistics solutions enable flexible multi-channel logistics and individually adapted fulfillment options, which leads to more efficient storage, picking and shipping products.

Thanks to the strategic distribution of risks to various suppliers and transport routes, companies can avoid bottlenecks and ensure their ability to deliver even in times of crisis. This agility gives you a clear competitive advantage in an increasingly unpredictable global market landscape.

Strategic shift of logistics locations

The choice of the right logistics location is a decisive factor for the company's success and will also gain in importance through the geopolitical changes. As is so often the case, the decision with the competition depends on the decision for the right logistics location. Increasing globalization leads to new distribution structures that are no longer based on country zones and investments that are made.

 

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European top European logistics locations in change

Logistics hotspots in Europe: The TOP 5 at a glance

A survey among users of distribution centers has determined the most sought -after logistics locations in Europe. The logistics market Venlo in the southeast of the Netherlands near the German border takes first place, followed by Antwerp-Brussels area in Belgium and Rotterdam. The German Rhein-Ruhr region and Madrid complete the top five locations.

This prioritization reflects the high importance of an excellent traffic infrastructure for logistics decisions. Germany scores particularly in the field of infrastructure and is attributed to a crucial role as a strategic logistics location. The increasing concentration on a few but larger production facilities also requires a review of existing distribution structures.

Case study Grohe: Optimization through shift in location

The new Lixil logistics center for the Grohe brand in Porta Westfalica offers a clear example of the strategic shift of logistics locations. With the new building, equipped with the latest warehousing technology, sanitary systems can be handled much more efficiently than before.

The location offers several strategic advantages:

A big advantage of the new logistics center is the proximity to the work. So far, various external warehouses in the area have had to be used due to the high envelope volumes. This shuttle traffic falls out due to the new building.

The modern logistics building with around 29,500 square meters of hall space - almost four times as much as the existing goods envelope from 1994 - enables higher envelope volumes as well as increased efficiency and flexibility. The new shelf and conveyor technology including fully automated distribution of pallets and the latest software contribute significantly to this increase in efficiency.

Jonas Brennwald, Lixil Emena, emphasizes that the logistics center is a significant investment in Grohe Professional. He explains that great growth is still expected in this area. With the new building and the perfectly coordinated processes, the company is optimally set up for the future.

Decision criteria for logistics locations

Various factors must be taken into account when choosing a logistics location. The most important decision criteria include:

  1. Sales and customer potential: The location of the production locations (sources) and customers (lower) is crucial for the positioning of a distribution center.
  2. Personnel availability: The availability of qualified workers in the respective region represents another important criterion.
  3. Traffic infrastructure: The quality of the road, rail, water and air traffic network is the most important criterion for the location analysis for the transport industry.
  4. Strategic considerations: This includes the determination of the number of warehouse and distribution levels, the number of storage, the storage locations and the size and function of the bearings.

Gesundliche dimension of supply chain resilience

The resilience of supply chains has now not only achieved a business, but also a social and security -political significance. Brigadier general Ralf Lungershausen from the Bundeswehr logistics command underlined this point and emphasized that industry is expected to actively face the dangers. On the one hand, this includes the structure of resistant structures, and on the other hand the securing of supply chains and protection against cyber attacks. This statement makes it clear that the securing of resilient supply chains is much more than entrepreneurial interests - it is an economic and security policy necessity. In this context, the "Operation Plan Germany" is described as a total -state and social task that combines political and operational aspects of external and internal security.

Suitable for:

  • Resilient market economy: The key to sustainable growth in times of crisis?Central points of a sustainable market economy: resilience and social responsibility as central values

Strategic realignment as a competitive advantage

The increasing geopolitical tensions and trade conflicts force companies to diversify their supply chains and to make resilient. The departure of linear supply designs towards multi -dimensional structures enables a more flexible reaction to external interference factors and reduces critical dependencies.

At the same time, the strategic choice of logistics locations is becoming increasingly important. Factors such as a central location, optimal transport connections and customer proximity are crucial for the company's success. The example of the new Grohe logistics center in Porta Westfalica shows how companies can increase their efficiency through skillful choice of location and the latest technology and achieve competitive advantages.

In a world that is characterized by “constant changes and global crises”, the ability to realign supply chains and logistics locations becomes a decisive success factor. Companies that accept this challenge at an early stage and diversify their supply chains will benefit from increased resilience, efficiency and customer satisfaction in the long term.

 

Xpert.Plus warehouse optimization - high-bay warehouses such as pallet warehouses consulting and planning

Xpert.Plus warehouse optimization - high-bay warehouses such as pallet warehouses consulting and planning

 

 

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