Middle East war as a test for supply chains

The Middle East war is testing the resilience of industrial supply chains, says Jane Enny van Lambalgen, CEO of the consulting and management firm Planet Industrial Excellence. After the coronavirus pandemic, many industrial companies switched to local sourcing in order to reduce their dependence on overseas suppliers. During Trump's customs chaos, many of these companies have already benefited from this reorientation. «But the Middle East war is the acid test of how successful the regionalization of supply structures has actually been,» explains the management expert.

Blocked sea routes between Asia and Europe

The management expert points out that practically all relevant sea routes between Asia and Europe are currently blocked: the Strait of Hormuz, the Persian Gulf, the Gulf of Oman, the Red Sea including Bab al-Mandab as the only southern access to the Suez Canal and the Suez Canal itself. The detour via the Cape of Good Hope involves a transit time of ten days to two weeks longer. Freight rates are expected to increase by 30 to 60 percent - including in air freight traffic, which has also been severely affected.

«In addition to higher costs and significant delays, congestion at the ports is a huge problem,» says Jane Enny van Lambalgen. She speaks of a «supply chain chaos that will lead to production stops and higher end consumer prices for many products». She cites industrial parts, electronics and consumer goods of all kinds as examples.

Wake-up call for Europe

The Middle East war should be a wake-up call for European politicians to reduce intercontinental energy dependency. «Just as Starlink's role in the Ukraine war was a wake-up call for the European satellite and space industry, the current conflagration in the Middle East should be a wake-up call for European energy supply and industrial production,» says Jane Enny van Lambalgen. In addition to the expansion of renewable energies, a return to nuclear power should not be ruled out, she advises politicians, particularly in Germany.

She has one piece of advice for companies« industrial production in particular: »local sourcing". Focusing on suppliers locally or at least on their own continent not only increases resilience to geopolitical disruptions, but also reduces costs. Local sourcing is also good for the environment. The management consultant therefore recommends that all industrial companies set up their supply chains more regionally.

Re-regionalization as a strategic path

After coronavirus, Planet Industrial Excellence received a number of inquiries from medium-sized industrial companies about diversifying and regionalizing their supply chains. «Unfortunately, only some of the companies for which we had developed corresponding concepts actually implemented them,» reports the CEO. The reason: for many medium-sized companies, which are often deeply rooted in global niche markets, it can be a lengthy and expensive process to establish new supplier relationships and possibly even relocate their own production facilities.

Nevertheless, the management consultant considers the «re-regionalization of supply chains» to be the «strategically best way to gain more independence from geopolitical uncertainties». She says: «Companies should avoid intercontinental dependencies as far as possible.»

Digital twin as a basis for decisions

The second important lesson from corona, which has «unfortunately proven to be true» in view of the current war in the Middle East, is the establishment of a so-called «digital twin». This is a digital 1:1 simulation of production and the supply chain. Jane Enny van Lambalgen explains: «Using a digital twin, you can run through the specific effects of current crises, from tariffs to wars, on your own supply situation and production at any time. This provides company management with reliable data as a basis for fact-based decisions within a very short space of time.»

Jane Enny van Lambalgen says: «The current developments in the Middle East show once again that resilience in supply chains is not just a nice-to-have, but an absolute necessity. German industry is faced with the task of continuing to exploit the advantages of its global network while at the same time reducing strategic dependencies.»

Jane Enny van Lambalgen is Founding Partner and Managing Director of Planet Industrial Excellence and a member of United Interim, the leading community for interim managers in German-speaking countries, and the Diplomatic Council, a global think tank with consultative status at the United Nations (UN). She works for companies as an interim manager for strategy, operational excellence, turnaround, supply chain management and digital transformation. As a temporary manager, she takes on positions as CEO, Managing Director, COO, Delegate of the Board of Directors, Supervisory Board and Advisory Board in medium-sized companies. Her work focuses on international operations assignments with a focus on production, supply chain and logistics. Jane Enny van Lambalgen was named «Top Interim Manager of the Year» in both 2025 and 2026.

More information: www.planetie.ch