Supply Chain Disruptions and Cost Increases

This page provides ongoing information on supply chain issues that might impact your ability to acquire specific goods or cause significant increases in the cost of goods. 

 

April 2025

 

A Message from the Chief Procurement Officer Regarding Tariffs:

The current Administration recently announced significant tariffs that will impact nearly all trading partners of the United States.

Considering the uncertainty this creates, it is imperative that we take proactive measures to mitigate disruptions.

The most effective and actionable step is to prioritize the use of UC systemwide contracted suppliers whenever possible.

These suppliers are integral to our procurement strategy, as we have established collaborative and long-term relationships with them. By aggregating our UC Procurement spend with these suppliers, we reinforce the value of our partnership and ensure continuity during this period of instability. These relationships are meaningful to both parties and provide a foundation of reliability in challenging times.

The partnered supplier catalogs within Aggie Enterprise continue to be the best option for procuring most goods. To procure items not found in the catalogs, consult the UC Procurement webpage to locate systemwide agreements.

If you cannot utilize one of our strategic partners, it is recommended to consider possible impacts of tariffs when requesting supplier quotes. If costs are increased by the supplier, it is preferable for such additional fees to be clearly identified, rather than be embedded in the cost of the goods. .

The campus Chief Procurement Officers (CPOs) and UC Systemwide Procurement are actively collaborating to navigate these challenging and unpredictable supply chain conditions. I will continue to provide updates as the situation evolves.

Thank you,

Mike Kuhner
UC Davis Chief Procurement Officer

January 2025

Departments may soon see cost increases on products commonly used on campus as a result of the incoming administration's proposed tariffs on goods coming from Mexico, Canada and China. The incoming president has indicated that he will pursue a 25% tariff on goods from Mexico and Canada and add another 10% to already existing tariffs imposed on China. 

The partnered supplier catalogs within Aggie Enterprise continue to be the best option for procuring most goods. However, if you notice significant price increases on goods regularly used in your teaching, research, or patient care, please reach out to the appropriate Strategic Sourcing manager to learn about potential alternative suppliers. 

August 2023

There is an industry shortage of the raw material required to make certain high use drugs. As a result, supplies are in short supply for the following drugs:

  • Fentanyl
  • Hydromorphone
  • Buprenorphine
  • Ketamine
  • Midazolam

If these specific drugs are essential for your research, plan well in advance to ensure you receive the desired quantities. Many distributors have restricted distribution, and customer accounts are now on allocation, creating frequent backorders.