The 2:00 Minute Warning with Mike Regan

When it Comes to Managing Supply Chains, Hope is Not a Strategy

Written by Mike Regan | May 6, 2026

 

 

For the past few weeks, we’ve been discussing why scenario planning is no longer optional for companies responsible for freight, logistics, and supply chain operations.

And yet, during a recent conversation with several experienced supply chain executives, I was reminded how many organizations are still operating on assumptions rather than preparation.

I asked a simple question: “What happens if oil reaches $200 a barrel?”

One executive looked at me and said, “I hope that never happens.”

Then we shifted to tariffs and trade policy. We discussed the uncertainty surrounding IEEPA refunds, processing delays, bad data, and the growing possibility of additional trade actions layered on top of Sections 232 and 301.

I asked: “What happens if those refunds don’t materialize? What happens if costs continue stacking up?”

Another executive responded: “We hope that doesn’t occur.”

That’s the problem. In today’s environment, unmanaged uncertainty becomes a financial liability.

Supply chains are no longer isolated operational functions. They directly impact profitability, working capital, customer retention, inventory strategy, sourcing decisions, and shareholder value. Disruption is no longer episodic — it is systemic.

The companies that outperform during disruption are not necessarily the ones that predict the future perfectly. They are the ones that model potential outcomes before disruption occurs and prepare coordinated response plans across the enterprise.

That requires more than transportation visibility. It requires alignment.

Procurement, operations, inventory management, transportation, customer service, finance, and sales all influence supply chain performance. Yet in many organizations, these functions still operate in silos, optimizing departmental priorities without understanding the downstream impact on the enterprise as a whole.

That’s why structured scenario planning has become essential.

It’s also why the Supply Chain Edge Rapid Assessment process has become so valuable for organizations looking to strengthen resilience and improve performance. The process brings stakeholders together from across the organization to evaluate the supply chain end-to-end — from procurement through operations and ultimately to the customer experience.

When the right people are in the room together, assumptions get challenged, blind spots surface, operational tradeoffs become visible, and contingency plans begin to take shape. That’s how companies move from siloed supply chains to resilient supply chains.

If you joined our recent webinar with Yossi Sheffi from MIT, you heard this message clearly: Supply chain resilience does not happen by accident.

And in our upcoming webcast on May 27, 2026 with noted supply chain expert Jim Tompkins, we’ll address another hard truth: if you do not have a plan for disruption, then disruption already has a plan for you.

As Jeff Wilke once shared with me while discussing how Amazon built one of the world’s great supply chains, the companies that win over the next decade will not simply operate supply chains more efficiently. They will operate them more intelligently.

They will model scenarios, understand risk exposure, align stakeholders, and make better decisions before conditions force them to.

If your organization is ready to move beyond reacting and begin building a more resilient, agile, and economically aligned supply chain, we should talk.

We're here to help. Give us a call at 630-833-0890, send us an email, or schedule a conversation.