Wipro: How to Rethink Sourcing Amid Trade Tariff Turbulence

The global trade landscape has become increasingly volatile, with shifting geopolitical dynamics and fluctuating tariff regimes creating unprecedented challenges for procurement professionals.

As supply chains face mounting pressure from regulatory uncertainty and operational disruptions, forward-thinking organisations are turning to AI and advanced digital capabilities to maintain competitive advantage.

Gautam Sardar, Senior Consulting Partner and Head of Manufacturing Consulting, North America at Wipro, believes the current environment presents both significant risks and transformative opportunities for supply chain leaders.

The perfect storm facing procurement

Today's procurement environment is characterised by what Gautam describes as a "perfect storm" of interconnected challenges. Traditional ERP systems and functionally siloed supply chain solutions, built on static rules, are struggling to adapt to rapid regulatory changes and geopolitical instability.

The financial implications of this technological inadequacy are substantial. Recent research from the Institute for Management Development reveals that nearly one-third of exports fail to capitalise on available reduced or exempted duties from Free Trade Agreements, resulting in considerable financial losses for companies. Meanwhile, a 2025 Bain & Company survey indicates that 28% of supply chain executives are now investing in advanced technology to better manage trade risks.

"The uncertainty surrounding the timing and extent of these tariffs has led to significant challenges for businesses, particularly in the retail, e-commerce, automotive and manufacturing sectors," explains Gautam.

"Companies are evaluating the potential impact on their supply chains, considering diversification strategies and preparing for potential price hikes and supply chain disruptions."

Whilst many organisations focus on immediate tariff impact mitigation, Gautam emphasises the importance of long-term strategic thinking.

He notes: "It is imperative to not only mitigate the impact of tariff shifts resulting in a volume surge, evolving regulatory changes, item classification and tax calculation in the short term, but also prepare themselves for continuing long-term volatility."

The cost of inaction extends beyond immediate financial losses. Companies that fail to modernise their trade management capabilities risk losing competitive positioning as more agile competitors leverage advanced technologies to optimise their operations.

AI-powered transformation strategies

Progressive procurement leaders are implementing several AI-driven approaches to enhance supply chain resilience. Advanced digital platforms utilising AI algorithms enable continuous evaluation of alternative sourcing options and supply chain scenarios.

This capability allows businesses to optimise sourcing, production and distribution strategies in real-time response to tariff changes.

AI-powered tools also analyse total landed costs incorporating the latest tariff projections, supporting informed decisions about cost absorption, pricing adjustments or alternative sourcing strategies. Real-time projected costs, margins and volume dynamics enable optimised demand and supply planning despite supply chain uncertainty.

"AI enablement to achieve semi-autonomous S&OP that present the planners and decision makers with short and long-term possibilities in wake of changing trade restrictions is essential," Gautam explains.

For distributors facing increased costs, AI-driven dynamic pricing and customer segmentation based on tariff sensitivity help maintain competitiveness while maximising revenue.

Advanced analytics also transform supplier relationship management, with AI-powered insights supporting data-driven negotiations with suppliers, logistics partners and customers, facilitating cost-sharing arrangements or contract renegotiations to mitigate tariff impacts.

Regulatory compliance represents another area where AI delivers significant value. Agentic AI-powered Global Customs Clearance solutions enhance customs brokers' efficiency by automating tariff classification and providing real-time regulatory updates.

"Additionally, Agentic AI can support compliance management by continuously monitoring regulatory changes and helping brokers identify and mitigate potential risks," Gautam explains.

Strategic decisions: localisation vs globalisation

One of the most significant strategic decisions facing procurement and supply chain professionals involves balancing localisation against globalisation.

Gautam advocates for a nuanced approach: "Evaluate the potential for localising production to reduce reliance on imports and mitigate tariff impacts whilst balancing it with the economies of scale through global sourcing.

"AI can assist in analysing production costs, regulatory requirements, and consumer demand towards balanced decisions both in the short and long-term."

This strategic evaluation requires sophisticated analytical capabilities that traditional systems simply cannot provide. AI-powered platforms can process vast amounts of data to identify optimal production locations, supplier networks and market entry strategies.

For market diversification, digital tools help identify and evaluate new markets by considering demand patterns, competitive landscapes and tariff implications.

"AI driven scenario models can help in determining the markets to grow, markets to exit and markets to open," Gautam continues. 

Building competitive advantage through tech

Organisations set to thrive in this challenging environment are those that view current disruptions as opportunities for fundamental transformation.

"Companies that proactively adopt technology to enhance visibility, flexibility and compliance in their operations will be best positioned to weather these disruptions and emerge stronger," Gautam emphasises.

This transformation extends beyond immediate operational improvements to encompass sustainable supply chain practices, including green manufacturing, sustainable supplier ecosystems and eco-friendly warehousing solutions. The integration of AI accelerators helps build supply chains with inherent flexibility and resiliency that form the core of market competitiveness.

As global trade continues to evolve, procurement professionals must embrace advanced digital solutions to maintain competitive advantage. Gautam's advice for procurement leaders is clear: "We encourage you to evaluate your current supply chain and trade management systems and investigate how advanced digital solutions can assist you in mitigating risks and enhancing your operations."

The question is not whether to adopt these technologies, but how quickly organisations can implement them to stay ahead of the curve in an increasingly complex global trade environment.