Tariffs and trade policy challenges require a strategic mindset. Through our experience advising a diverse range of industries—from manufacturing to private equity—we have identified and executed steps that have positioned businesses to capably manage through unplanned events. The new normal continues to evolve with twists and turns that can cripple businesses who are not prepared. The time for planning is now.
Our approach involves taking a close look at your supply chain to identify potential vulnerabilities before they become issues. As a first step we recommend mapping your material sources and evaluating which components are most likely to be impacted by tariff changes.
Diversification is key: Consider engaging additional suppliers from different regions or shifting to domestic suppliers where possible. Early evaluation of potential new sources and proactive adjustments can help mitigate risks when there is little time to react.
When we review a client’s supply chain for efficiency, cost savings and risk mitigation, we take a thorough review of your current contracts as an essential step.
– In both supplier and customer contracts, look for tariff-related stipulations.
– Amend contracts by integrating clauses that address unforeseen shifts in trade policy, such as force majeure or price adjustment mechanisms, to allow for necessary flexibility.
– Craft a legal strategy that not only protects your financial interests but also ensures that your business can adapt quickly as trade policies change.
In our view, financial resilience is as important as operational agility. We recommend the following:
Effective communication with your network of suppliers, customers, and investors is paramount. When your stakeholders are informed about potential changes and mitigation strategies, you build trusted relationships. Companies who are transparent ensure everyone understands the rationale behind pricing adjustments or supply chain modifications.
Business agility is a critical factor in your long-term success. Whether it means temporarily absorbing additional costs, or reconfiguring your supply chain model, your team should incorporate adaptive strategies to ensure your operations remain resilient.
Some businesses have even redesigned products to utilize alternative materials, a step that demonstrates both innovation and proactive risk management.
At The Poirier Group we blend strategic planning, well-formulated execution, and an in-depth understanding of operations with years of hands-on experience and a highly collaborative team approach. We bring together the latest technologies, diverse skill sets, and innovative advances to augment your team’s capabilities and accelerate the progress of your initiative. Share with us your current state and where you want to be. We’ve got the reputation of helping clients achieve their goals and creating sustainable outcomes. Want a better consulting experience? Contact Us!
