The 2:00 Minute Warning with Mike Regan

Optionality Beats Optimization in a Disrupted Supply Chain

Written by Mike Regan | May 27, 2026

 

Today we hosted a webcast with our friends from NITL and CSCMP discussing why freight strategies break under pressure. The conversation reinforced something many executives are already experiencing in real time:

The supply chain environment most companies planned for no longer exists. This year alone, companies have had to navigate:
•    rapidly changing tariff policies 
•    fuel surcharge spikes tied to geopolitical conflict 
•    tightening truckload capacity 
•    shifting trade lanes 
•    rising transportation costs 
•    expanding shipper liability exposure 

Since most freight budgets and forecasts built for stability are already under pressure,  the important question leadership teams should be asking is simple: 

Did our transportation and supply chain strategy anticipate any of this?

For many shippers, the honest answer is: “No.”

For others, the answer is even more concerning: “We really do not have a clear disruption response framework at all.” And that is the real issue.

Most companies still operate supply chains designed for stability, where pricing models, carrier strategies, and operational processes were optimized for efficiency — not disruption.

But optimization assumes stability. Optionality assumes change.

Companies that perform best under pressure are not necessarily the ones with the most optimized networks. They are the ones with the greatest operational optionality — the ability to shift carriers, modes, sourcing strategies, and routing structures as conditions evolve.

Without that flexibility, disruption exposes:
•    escalating transportation costs 
•    service failures 
•    margin erosion 
•    governance gaps 
•    operational bottlenecks 
•    increased legal and financial risk 

We are already seeing this play out.

The recent Supreme Court ruling involving C.H. Robinson significantly raised awareness around shipper liability and carrier governance. At the same time, uncertainty around tariffs, fuel costs, and transportation markets continues to grow. Yet many organizations still lack clearly defined transportation governance, contingency planning, and disruption response processes.

When disruption occurs, companies without that level of preparedness default into reactive decision-making — slowing response times and increasing enterprise risk precisely when speed and clarity matter most.

Transportation governance and contingency planning are now resiliency requirements, not operational exercises. The companies navigating today’s volatility most effectively are building adaptability and resiliency directly into their transportation and supply chain strategies.

If your organization has not recently evaluated its transportation governance, contingency readiness, carrier strategy, or supply chain optionality, now is the time.

Most companies are far more exposed than they realize.

Our Supply Chain Edge Rapid Assessment helps executive teams identify hidden transportation risks, governance gaps, and operational vulnerabilities before volatility exposes them.

Because in today’s environment, the question is no longer whether disruption will occur. The question is whether your organization will be prepared when it does.

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