Despite American political environment, global geopolitical risks could be easing

In a recent Supply Chain Management Review article, columnist Rosemary Coates told the story of how a LAN transformer had resulted in thousands of Audi, Bentley and Porsche vehicles sitting idle at U.S. ports.

In terms of procurement issues, this is just a minor blip on the radar of the current geopolitical landscape. There are issues in the Red Sea. There is the ongoing Russia-Ukraine war. There is Israel-Hamas. There are trade tensions between the U.S. and China. There are elections, not just in the U.S. but in at least 64 other countries. There are concerns over certain minerals such as graphite, which China dominates with 61% of the market share. China also controls the global supply of gallium and germanium, two critical minerals used in semiconductor production.

In short, there are plenty of geopolitical issues that procurement professionals not only need to be aware of, they need to navigate around.

There are some that believe the upcoming U.S. presidential election will change the fortunes of global trade and provide clarity on the path forward. To Ian Bremmer, though, that is a fallacy.

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