What impact will the increase in US tariffs have on the global supply chain?

The announcement of an increase in customs duties in the United States provoked immediate reactions from the countries concerned (Canada, Mexico, China), followed by a temporary suspension for Mexico and Canada by the White House. If these measures, or the abolition of the "de minimis" threshold (the amount below which a parcel is exempt from tax), are implemented, this would raise the cost of goods crossing borders.

Although consumers will absorb some of these increases, businesses will have to adjust their selling prices to remain competitive on the international market. At the same time, they will face a rise in the cost of imported raw materials, reducing their margins on both purchases and sales.

These sudden and unforeseen upheavals are forcing companies to adapt quickly, requiring a more flexible supply chain. They must constantly review their logistics strategies to protect their profits, avoid stock-outs and guarantee customer satisfaction despite the new constraints on order management.

In a context marked by volatility, uncertainty, complexity and ambiguity, these changes are not limited to the Supply Chain, but affect all operations: sales and marketing strategy, production methods, human resources management and working capital requirements.

The adoption of APS (Advanced Planning & Scheduling) modules with artificial intelligence (AI) is therefore becoming a key solution for boosting the agility and resilience of supply chains. These tools optimise the calculation of requirements according to variations in demand and new customs constraints, guaranteeing more efficient management of stocks and supplies.

What logistics strategies can be put in place to adapt quickly?

There are a number of things that can be done to minimise the impact of customs duties and international trade tensions, including promoting local supply channels and circular economy strategies:

• Relocating production: producing in the United States could be an option, although it would involve higher manufacturing costs and long-term investment.
• Strengthening local infrastructures: developing regional warehouses would enable better management of flows and returns, thereby reducing logistics costs and delivery times.
• Consigned stock: an effective solution for limiting transport costs is to set up consigned stock with partners and customers. This approach reduces storage and transport costs by ensuring immediate availability of products close to consumption areas. It also promotes better flow management and optimises logistics costs by avoiding unnecessary shipments.

Other adjustments can be made to optimise costs and improve competitiveness:

• Reorienting target markets: turning to regions less affected by these restrictions and more profitable.
• Optimising upstream logistics flows (supply): giving preference to local suppliers to reduce dependence on taxed imports.
• Reviewing downstream logistics flows (distribution): adapting sourcing strategies according to the most advantageous customs charges.
• Rigorous returns management: restrict or charge for certain product returns to limit the financial impact.
• Advanced scenario analysis: using technologies such as digital twins to simulate different strategies and optimise logistics decisions.

The integration of an APS module and an AI-driven replenishment system enables effective anticipation of market variations. With these tools, companies can forecast demand and adjust inventories in line with new pricing policies. Dynamic inventory adjustment helps avoid costly surpluses while reducing supply disruptions.

How can international companies review their sourcing?

In an unstable trading environment, it is vital for companies to implement a flexible and responsive sourcing strategy. They need to be able to adapt their supply chains, both upstream and downstream, while retaining total control over their operations.

The aim is not to respond to every fluctuation immediately, which could lead to disorganisation, but rather to structure their supply chain so that they can implement adjustments according to their own timetable and without disrupting their business.

Recommended actions:

• Assess the reliability of current suppliers: identify vulnerabilities and diversify sources of supply.
• Explore alternative sourcing: secure supply chains by diversifying partners.
• Analyse the technological tools available: ensure that the software solutions used enable rapid adaptation to new regulations.

The integration of AI-powered APS modules and advanced forecasting algorithms is becoming essential. These tools make it possible to:

• Speed up procurement by adjusting order quantities in real time.
• Optimise logistics costs by selecting the best sourcing options.
• Improve overall supply chain visibility to anticipate and avoid potential risks.

The main challenge for companies is to define prioritisation rules to identify the best sourcing approach based on new taxes and customs constraints.

The combination of AI and APS solutions offers more flexible and efficient flow management, giving companies a strategic advantage in the face of the uncertainties of global trade.

Monstock is the solution that simplifies and optimises logistics management, from the warehouse to the field. Thanks to its full web and mobile approach, it guarantees a fluid experience, enhanced traceability, and concrete results such as reduced costs and user satisfaction.

For more information, contact the Monstock team.