As the world watches and countries begin talking to the US about tariffs, now is the time to act. Many companies are developing strategies to prepare for whatever the future holds. These strategies include:

• Stockpiling Inventory
• Diversifying Suppliers
• Expanding into New Markets
• Investing in Automation and AI

Some companies are building up inventory ahead of the tariff increases to avoid higher costs later. However, this can tie up capital and may require additional storage. Another strategy is to diversify their supplier base by shifting production to manufacturing out of tariff-affected countries or to the US. Companies are looking for new international markets where they can offset losses from tariff-affected regions. This reduces reliance on a single country for revenue.

Some firms are looking to invest in automation and AI to cut operational costs to absorb the impact of tariffs. According to the April 7th Food Logistics article, 62% of companies are looking at ways to automate their processes. Whether it is to introduce AI or Robotics in their warehouses to upgrade or implement new ERP systems, they are trying to determine where to begin. The starting point is often identifying the processes that consume the most time to complete and determine if these processes are manual or have several manual steps that are causing the delays. Why are they manual? In many cases the processes are manual because there is not timely and accurate information available.

Once it is decided to automate the manual processes, accurate and timely information is required. Companies must determine where and how they need to acquire the information. In most cases, the information is not automated from their customers and suppliers but manually entered into their application. This is where Innovate can help. Through our Managed Services and our Supplier Toolkit, we can assist you in obtaining the information you need from your customers and suppliers to electronically eliminate the manual processes.

Click here to learn more about Innovate’s Services or email Innovate E-Commerceinfo@innovateec.com