Navigating the Tariff Storm Part I: Ways to Mitigate the Impact of Tariffs

With the uncertainty of how the tariffs will impact your business, it is critical to implement a mitigation strategy. Regardless of the results of the tariff negotiations, the following actions can position your supply chain for success.

• Supply Chain Strategy
  • Reviewing your supply chain from a holistic perspective is critical. Fortunately, network modeling software has evolved to meet the need to quickly and effectively model the impact of potential changes to your supply chain. If you haven’t done a network model recently, we can help you select a package and develop and train your team to be self-sufficient. Optilogic’s Cosmic Frog with their Lumina Tariff Optimizer captures the latest tariffs, allowing real time evaluations.

Modeling will help guide your strategy from a macro perspective. The following items will optimize overall performance at the micro level.

• Labor Management System
  • Regardless of whether you change foreign suppliers or onshore, reducing the cost of labor is critical. One of the quickest and most effective ways to achieve labor savings is by implementing a Labor Management System (LMS). The payback is typically less than a year with savings and efficiency gains between 8% and 15%. One such system is Easy Metrics. Sedlak has implemented this package for multiple clients within 60 to 90 days.
• Automation
  • Promat highlighted the huge array of automation options available including Autonomous Mobile Robots (AMRs), Automated Guided Vehicles (AGVs) and Goods to Person (GTP). Some of these can be implemented in less than 6 months, while others may have a lead time of 12 months or more. Many solutions can be acquired as a service rather than as a capital expenditure. Selecting the most appropriate automation solution and partner can be a daunting task. Working with an experienced consulting firm will reduce the time and effort and result in the lowest cost. Our experience with leading material handling suppliers such as Swisslog, Autostore and Ocado, ensures the optimal solution and price for your system.
• Foreign Trade Zone (FTZ) or bonded warehouse
  • Consider an FTZ or bonded warehouse to hold your inventory and strategically time its entry into the U.S. Setting up your own FTZ or bonded warehouse can be a time-consuming process, but can certainly provide benefits. An option is to look for a 3PL partner who has the capacity to bring you onboard quickly.

Let Sedlak assist you in addressing these challenging times. With over 65 years of experience advising industry leading organizations, Sedlak will help address the challenges of today and prepare you for an ever-evolving future.

For more info, contact Lou Cerny, Vice President of Sedlak Supply Chain Consultants at Lcerny@jasedlak.com or 216-346-8377.

Continue reading the series!

Part II: How 2025 Tariffs Are Reshaping Strained Global Supply Chains

Part III: Surviving Tariff Turbulence – What to Do Now

Part IV: How Mid-Size Retailers Can Stay Afloat

Part V: Tariffs at the Table

Part VI: The Good, The Bad, & What’s Next

Part VII: Trade Policy Update

Part VIII: Is Your Supply Chain Ready?

Part IX: How the Global Trade War is Heating Up

Part X: Strategic Tariff Tools for Resilient and Agile Supply Chains

Part XI: Light at the End of the Trade Tunnel?

Part XII: Don’t Let Evolving Tariffs Distract You from Making Operational Improvements

Part XIII: Rethinking Your Investment Strategy – CapEx vs. OpEx