Navigating Supply Chain Disruptions in Australia: Insights for Procurement Leaders

As global trade tensions flare and Australia finds itself increasingly exposed to both US - China friction and emerging tariffs, supply chain disruptions have shifted from being an occasional headache to an ever-present strategic threat and daily reality. Procurement leaders can no longer rely solely on cost-optimization and supplier diversification. The new reality demands risk mitigation, agile thinking, and digital tools to future-proof operations.

In this co-authored piece, Dojo Esquivel, General Manager – Procurement & Supply Chain, Club Assist/AMS, and Haris Komarla, Head of Procurement and Supply Chain, Hearing Australia, unpack actionable strategies that Australian procurement and supply chain leaders can apply today to navigate an increasingly turbulent world.

Why Risk Mitigation is Non-Negotiable for Australian Supply Chains

With U.S. tariffs reshaping global trade flows, port congestion, and local labour strikes creating bottlenecks, Dojo Esquivel urges supply chain leaders to treat risk management as more than a contingency plan:

1. Buffer with Purpose: "Keeping a reasonable safety stock isn’t just about ordering extra stocks," Dojo explains. It’s about stress-testing your forecasting process, ensuring your planning is robust enough to handle information gaps and market surprises.
2. Trust, but Verify Suppliers: Strong supplier partnerships are essential, and although this can only be proven over time, Dojo emphasizes the importance of regular assessments and check-ins. "Partners should have enough bandwidth and influence to help you navigate during disruption when it happens, not after."
3. Invest in Talent: "Tool up the team now. Hire and train the right people. Invest in them," he advises. Having a resilient, well-trained team is non-negotiable in the current climate where disruptions are the norm, not the exception.

Strengthening Supplier Relationships: Lessons from Real-World Disruptions

Establishing clear KPIs with contracted carriers, forwarders, and 3PLs ensure goods are delivered on time," he says — and emphasizes that collaboration and proactive planning are the real safeguards against disruption.

On the other hand, Haris sees the crucial need to strengthen relationships with manufacturers as this allows supply chain leaders to achieve “stronger KPIs with contracted carrier/forwarder/3PL to ensure goods are delivered in timely manner.”

During the Georgia port congestion in the U.S., Haris' team avoided costly manufacturing downtime by renting a warehouse near the port as a temporary transit hub. "That gave us breathing room to avoid stoppages," he says. This example underscores the importance of proactive planning and collaborative logistics partnerships.

Similarly, in Sydney's Botany port congestion issue, partnering with transport companies that offered a 'holding yard' gave his team flexibility to manage delivery delays without overloading customer schedules — and even saved costs.

Tackling Australia's Domestic Vulnerabilities

Dojo points out that local issues like port strikes, logistics bottlenecks, natural disasters, regulatory shifts, tariff uncertainties, and skilled labour shortages can be just as damaging as global shocks.

• 3PL Partnerships for Ground-Level Visibility: "Your 3PL needs to know what's happening on the ground" he stresses the criticality of real-time intelligence and contingency planning.
• Multimodal Logistics and Stockpiling: Limited transport infrastructure makes route optimization and regional warehousing essential to smooth out supply chain hiccups, especially during extreme weather or labour actions.
• Flexible Procurement Contracts: Regulatory changes and tariff fluctuations demand contracts that allow for adaptability, as well as close monitoring of policy shifts to anticipate and respond to disruptions early.
• Addressing Labor Shortages: Automation, workforce training partnerships, and even offshore processing are necessary levers when local skilled labour is hard to secure.

AI, Automation & Digital Procurement: The Future is Now

The final layer in resilient supply chains? Technology.

Dojo stresses that digital tools are no longer a "nice-to-have.” AI-powered predictive analytics can forecast demand fluctuations, potential disruptions, and supplier performance issues, allowing teams to proactively adjust sourcing strategies. Automation minimizes manual errors, streamlines supplier interactions, and accelerates contract processing. These tools enhance decision-making speed. More importantly, they help teams pre-empt risks before disruptions escalate.

Strategic partnerships with technology providers and 3PLs offer access to real-time market intelligence, alternative sourcing options, and supply chain visibility tools — enabling faster, data-informed responses during turbulent periods.

"There is no way around it. Let’s embrace technology and the changes that come with it. If we don't, we risk not surviving, much less thrive in this environment," Dojo warns.

He also highlights the importance of mindset, drawing a clear parallel to the broader AI discussion: "Much like companies banning AI tools such as ChatGPT versus those leveraging them with controlled policies, procurement teams must adapt or risk losing relevance in an increasingly digital landscape. There are clear benefits for early adopters who establish proper governance and strategy for AI integration in procurement."

Haris echoes this view but adds a practical note: sometimes, simplicity is key. He highlights that API connectivity with transport and supplier systems allowed his teams to access real-time updates and mobilize transport resources efficiently during disruptions.

Conclusion

For Australian procurement leaders, the path forward lies in a mix of practical foresight, strategic partnerships, and digital transformation. As Dojo and Haris have shared, it’s not just about reacting quickly, but anticipating and preparing smartly: building stronger supplier relationships, embracing technology, and creating flexible, responsive systems that can withstand volatility. The adoption of AI-powered tools may enhance efficiency but leveraging it for strategic advantage and embedding such technologies into their digital infrastructure is key to unlocking their potential. Additionally, forging strong partnerships with reliable suppliers will help procurement teams to respond quickly to emerging shocks in the environment, minimizing stock shortages or logistics bottlenecks.

Contributors:

Haris Komarla, Chief Procurement Officer, Asia Pulp & Paper

Dojo Esquivel, General Manager – Procurement & Supply Chain, Club Assist

They'll be speaking at ProcureCon Australia Summit 2025. From cost management to aligning with regulatory practices, the new era of procurement brings on challenges that senior procurement leaders must face head-on. Tackling emerging disruptions is inevitable, so hear from them on how you can overcome these uncertainties without compromising on supply chain resilience. Click here to get the full agenda!