Tariffs have always played a significant role in shaping global trade dynamics. As trade policies continue to evolve, businesses must adapt their supply chains to remain competitive and efficient. In recent years, increased tariffs have prompted companies to rethink sourcing strategies, distribution networks, and inventory management practices.
The growing impact of tariffs
According to a recent report by KPMG, tariffs are prompting widespread changes in supply chains across industries. Businesses are increasingly moving production closer to key markets to avoid costly import taxes. This shift, often termed ‘nearshoring,’ not only mitigates tariff expenses but also reduces risks associated with long lead times and shipping disruptions.
Tariffs impact every link in the supply chain, from procurement to the final sale. Companies must carefully balance the cost of raw materials, manufacturing, and transportation while maintaining competitive pricing. For sectors such as wholesale and retail, where margins are often tight, the ability to manage these costs efficiently can be the difference between growth and decline.
Regional trade shifts
The BBC recently highlighted how global trade patterns are shifting as a result of tariff changes. Countries are forging new trade agreements and strengthening regional supply chains. For example, businesses in Europe are diversifying suppliers within the EU to minimize tariff exposure. In North America, companies are increasingly sourcing from Mexico and Canada to take advantage of free trade agreements.
These changes underscore the need for adaptable supply chain strategies. Companies that can quickly pivot their operations to capitalize on new opportunities will be better positioned to thrive in this evolving landscape.
Inventory management amid tariff uncertainty
Effective inventory management is crucial in a tariff-driven environment. Tariffs can lead to price volatility, making it challenging to forecast demand and manage stock levels. This is where advanced inventory management solutions, such as those offered by AGR, become invaluable.
AGR’s SaaS solution helps businesses optimize their inventory by providing real-time insights and predictive analytics. With features like demand forecasting and automated replenishment, companies can respond swiftly to market changes and tariff-induced fluctuations. By maintaining the right stock levels, businesses can reduce carrying costs and improve service levels, even in a turbulent trade environment.
Concerns about supply chain disruptions and rising costs
Concerns about supply chain disruptions and rising costs were also highlighted in AGR’s 2025 trends survey. According to the survey, 36% of respondents mentioned global supply disruptions, citing delays in shipping, shortages of raw materials, and transportation issues as key challenges. Another 36% expressed worries about rising costs due to inflation, increasing transportation expenses, and higher interest rates. These concerns underscore the need for businesses to develop resilient strategies and leverage innovative solutions to navigate these multifaceted risks.
Data-driven decision making
The use of digital tools and data analytics is becoming increasingly important as businesses navigate tariff challenges. As noted by the Public Broadcasting System (PBS) in the USA, data-driven insights are essential for understanding the potential economic effects of tariffs and making informed decisions. Companies that leverage data to analyse market trends, supplier performance, and customer demand will be better equipped to adjust their supply chains proactively.
AGR’s platform empowers businesses to harness the power of data for smarter decision-making. By integrating with ERP systems, AGR provides a holistic view of the supply chain, enabling businesses to identify inefficiencies, mitigate risks, and capitalize on opportunities.
Building resilient supply chains
To navigate the challenges posed by tariffs, businesses must build resilient supply chains that can withstand disruptions and adapt to changing market conditions. This involves diversifying suppliers, optimizing inventory levels, and leveraging technology to enhance visibility and control.
AGR’s inventory management solution provides the tools businesses need to build resilient supply chains. With a modular approach, companies can customize the solution to meet their unique needs and scale as their operations grow. By integrating demand planning, order automation, and stock management, AGR helps businesses achieve greater efficiency and agility.
Conclusion
Tariffs will continue to shape the global trade landscape, challenging businesses to adapt and innovate. By leveraging advanced inventory management solutions and data-driven insights, companies can mitigate the impact of tariffs and build supply chains that are both resilient and competitive. AGR’s commitment to helping businesses navigate these challenges positions it as a trusted partner in the journey toward supply chain excellence. As the trade environment evolves, AGR’s solutions will empower businesses to stay agile, efficient, and ready for what’s next.
