Before the pandemic, supply chain wasn’t a major theme of company operations discussed in earnings calls. Mentions of supply chains in 2019 earnings calls were rare, making up just 2% of discussions on quarterly earnings in the last five years. More than half of the talk about supply chains came in 2021 and 2022, as global economies began to reopen after the pandemic and found new backlogs and difficulties. Many supply chain gaps became more apparent during these years, as companies worked to close them and make their operations smoother.

The report found that the companies that did the best embraced technology and became more agile in terms of strategy and sourcing. They turned pent-up demand into long-term growth, focusing on stocking the highest-margin products first and framing demand to investors as a sign of stability. They worked to optimize their processes through manufacturing, staffing levels and diversified expansion. And they adapted to consumer demands, both with new products and adapting to newer shopping preferences.

The companies with the lowest performance weren’t able to forecast shortages, did not have the technology available to monitor their supply chain operations, and made poor pricing decisions—sometimes absorbing too much of the higher costs and lowering profit margins and investor confidence. They also tended to be more reactive to issues that presented themselves, working to make changes after problems became more evident instead of planning and addressing them proactively.

A new twist in the supply chain saga is playing out now as recently announced global tariffs threaten to make the cost of doing business in the U.S. more expensive. Experts have said that while things are uncertain and rates and effective dates seem to be in constant flux, the same technological strategies will help. Companies that are more agile and have a better visibility on their supply chains are likely in the best position.

Publicly traded companies are always concerned with activist investors, and these groups hoping for companies to make changes have made several big moves in the last year. I talked to investigation firm Nardello & Co.’s CEO Sabina Menschel and Partner Nicholas Peck about trends in activist investors. An excerpt from our conversation is later in this newsletter.

Until next time.

Even though Trump sounded like he was softening his tariff stance, there wasn’t much progress in the last week. On Thursday, Chinese officials said there had been no motion in trade negotiations with the U.S., and reiterated that they want Trump to drop all unilateral tariffs. Chinese Ministry of Commerce spokesperson He Yadong said China is open to talks, but any such dialogue must be “conducted on an equal footing and based on mutual respect,” and the U.S. must correct its “wrong practices” before engaging with Beijing.

The markets were also energized by Google’s quarterly results last week, which beat expectations across the board. The tech giant brought in $90.2 billion in revenue, besting expectations of $89.2 billion and posting 12% top-line expansion compared to last year, with 49% bottom-line growth year-over-year. However, Google’s last quarter performance doesn’t guarantee success going forward. Its ad revenue could be hurt as tariffs cut into company budgets. The company has seen potentially existential legal troubles, with a U.S. District judge ruling earlier this month that it has an illegal monopoly on advertising technology. In another antitrust case that Google lost, a judge is currently presiding over a penalty hearing to see if the company should be forced to divest its Chrome browser.

Meanwhile, Chinese online retailers Shein and Temu, known for rock-bottom low prices, began hiking them in response to tariffs on Friday. Bloomberg reports Shein prices increased as much as  377% overnight—though the prices still seem inexpensive. The largest increase was on thick kitchen cleaning towels, which were $1.28 on Thursday, and $6.10 on Friday.

Small businesses are searching for their best solutions. Forbes’ Brandon Kochkodin talked to 10 companies that first made their mark on TV’s Shark Tank about what they were doing in the face of tariffs. Many of them manufacture their products in China because the infrastructure is there or to keep labor costs down. The solutions are difficult, and many of the entrepreneurs said their businesses are facing existential crises, delaying new shipments and trying not to make any hasty decisions.

This is the latest identity-based commemoration to get muted in the face of Trump’s stance on DEI. Some companies stepped back on their usual events and branding for Black History Month in February and Women’s History Month in March. 

If you don’t have in-house counsel, you can still get a close read on contracts and other legal documents. This is an area where AI can help. Here’s how to get an AI chatbot to take a look at contracts and other documents and highlight areas of concern (or at least translate them to more understandable language) before you sign.