The Iran Conflict Is Reshaping Global Supply Chains
- DBM
- 3 days ago
- 2 min read
Oil prices are rising, but that’s only the beginning.
The Iran and U.S.-Isreal war have severely disrupted traffic through the Strait of Hormuz, a corridor that carries ~20% of the world’s oil and gas supply.
With tankers avoiding the region and traffic slowing to a trickle, a cascading supply chain impact is now unfolding.
Commodities Significantly Impacted:
Oil and Gas: ~20% of the world’s oil and liquefied natural gas (LNG) flows through the strait which are key inputs for plastics, pharmaceuticals and synthetic materials.
Fertilizers: ~50% of the globally traded urea (a major nitrogen‑based fertilizer) originates from Gulf producers. Disruption in exports threaten food production, especially as planting season begins in the U.S.
Aluminum: 23% of non-Chinese supplied Aluminum is affected. It is used in the solar industry, automotive manufacturing, appliances, airplanes, and power lines.
Helium: 33% of Helium world exports from Qatar are strained. Helium is essential for semiconductor manufacturing, medical equipment, product leak testing, and scientific research.
These ripple effects will soon be felt across manufacturing, retail, agriculture, and ultimately consumers.
With no clear end in sight, disruptions may take weeks or months for businesses to recover from—making proactive planning essential.
How S&OP Provides Clarity in Uncertain Times
In fast‑moving crises like this, Sales & Operations Planning (S&OP) becomes essential. S&OP is at its core an alignment process.
In times of uncertainty, what we cannot afford is lack of agreement on strategy and execution. There is enough going on outside our organizations that we can’t control, without chaos created by lack of clarity and control within our own four walls.
S&OP helps organizations make clear, strategic decisions, not reactive ones by:
Building trust across the organization by delivering on committed plans
Adjusting plans based on current constraints
Ensuring Strategy and Execution stay aligned
Communicating proactively both internally and externally with partners and customers
Agreeing on priorities with key customers and products
Building scenarios around disrupted paths
When the world is uncertain, S&OP becomes the control tower for navigating volatility.
Build a Strong, Future‑Ready S&OP Process
An effective S&OP process aligns your teams, empowers leaders to make confident decisions, and drives measurable business results. Our emPPPower program provides the structure, tools, and hands‑on support you need to build a sustainable process—every step of the way.
Take the next step to transform your business and emPPPower your team.
