Mitigate Supply Chain Risk in a Shifting Tariff Environment

Distribute production across multiple countries to safeguard your business from local or regional disruptions. Choose locations where tariffs are low and are forecast to stay low for the markets you serve.

Spot-adjust your manufacturing origin mix to maximize trade-friendly regions and reduce the impact of new or changing tariff policies. This strategy helps maintain your existing product design and specifications. If tariffs rise in one market, pivot to another sourcing origin to minimize the impacts on products or schedules.  

Work closely with suppliers to stay ahead of supply chain risks. Suppliers often detect disruptions before their customers and can give early warnings about shortages or price swings. A strong relationship also makes it easier to secure priority service when supply is tight. 

Secure long-term contracts with key suppliers to lock in terms and alternative supply locations. Doing so can protect your supply chain from sudden tariff hikes and geopolitical disruptions.

When others face shortages during trade disputes, your agreements ensure a steady supply and predictable costs. These agreements simplify demand forecasting, which strengthens your supplier relationships. 

Use certified, pretested components whenever possible. Choose modules or parts that meet regulatory standards in your markets. Products with verified testing or compliance certificates move through customs quickly and face fewer rejections.

Border delays are reduced, and the burden of proof of compliance is simplified. Your time-to-market is shortened, avoiding the need for redesigns linked to regional rules. 

Plan for trade compliance at the start of product design. Use correct tariff codes and prepare accurate product descriptions. Keep documentation organized. Understand local labeling and testing standards to avoid port delays.

Create documentation protocols tailored to each shipping region. Include specific tariff codes, precise product descriptions and necessary testing documents. Customs issues often arise from incomplete paperwork rather than policy changes. 

Maintain a strong, finance-wise parts inventory to ensure production and delivery remain on track. If customs delays or new trade restrictions slow shipments, your supply chain can still fulfill orders and meet short-term demand. Advanced planning minimizes downtime and safeguards your production schedule, even as trade policies change.  

Utilize buying hedges to mitigate price volatility and maintain a stable cost structure for raw materials. By entering into a hedge contract, you can lock in prices for future purchases of commodity components, protecting your company from potential price increases. That stability supports more predictable budgeting, reduces financial risk and enables better planning for production.  

Store key components (e.g., modules) near your final assembly plants. Locating parts closer to production shortens shipping times and avoids moving parts across borders multiple times, which can trigger extra tariffs. Keeping modules local gives you more control over production and helps you respond faster to changes in trade or regulatory policy. 

Set up regional manufacturing or distribution centers close to your major demand markets. Regional hubs reduce exposure to unexpected cross-border issues. Inventory stored in multiple regions can help you fulfill orders quickly, even if customs and supply chain transportation routes are unpredictable. Diversification reduces reliance on any single country and limits the impact of sudden trade fluctuations. 

End-to-end visibility of your supply chain cuts guesswork and reduces surprise delays. Use real-time tracking and analytics tools to monitor shipments. These tools give you a clear view of your supply chain. Greater visibility of your shipment location allows you to adjust and respond before issues escalate.