How Businesses Can Plan Ahead With Inventory Before Tariff Increases
Businesses face many challenges in today’s dynamic global trade landscape, particularly concerning tariffs and import regulations. With the U.S. government potentially increasing tariffs on goods imported from China and Europe, companies must act swiftly to mitigate costs and ensure smooth operations. Here are some strategies to help businesses ship extra containers of inventory into the U.S. before any potential tariff increases take effect.
1. Assess Inventory Needs
Before diving into shipping strategies, businesses should thoroughly assess their current inventory levels and future demand projections. Understanding which products are in high demand can help prioritize shipments. Focus on high-margin products that could be significantly impacted by tariffs, ensuring you stockpile these items first.
2. Optimize Shipping Logistics
Efficient shipping logistics are crucial for any business looking to import goods. Companies should engage with freight forwarders to secure the best shipping rates and schedules. Businesses can reduce lead times and shipping costs by consolidating shipments or opting for less congested ports. Additionally, considering multiple shipping routes can provide flexibility and help avoid disruptions.
3. Increase Order Quantities
Given the uncertainty surrounding tariffs, businesses should consider increasing their order quantities from suppliers. By placing bulk orders, companies can take advantage of current pricing before any tariff hikes are implemented. This strategy not only helps in building inventory but can also leverage better pricing negotiations with suppliers. Be sure to communicate clearly with suppliers about the urgency of these orders to ensure timely production and shipping.
4. Explore Alternative Suppliers
If tariffs heavily impact certain products, businesses should consider diversifying their supplier base. This may involve sourcing goods from countries with lower or no tariffs when importing into the U.S. For example, companies can look at suppliers in Mexico, Vietnam, or other Southeast Asian countries. Building relationships with these suppliers now can create a buffer against future tariff increases.
6. Leverage WMS Technology for Supply Chain Management
Implementing supply chain management software (WMS or TMS) can greatly enhance visibility and control over inventory. Technology solutions can provide real-time data on inventory levels, shipment statuses, and demand forecasts. By utilizing such tools, businesses can make more informed decisions about when and how much inventory to ship, reducing the risk of overstocking or stockouts.
7. Monitor Regulatory Changes
Staying informed about potential regulatory changes is crucial. Businesses should monitor trade policy updates and tariff discussions closely. Subscribing to trade newsletters, joining industry associations, or consulting with trade experts can provide valuable insights into impending tariff changes. This proactive approach can help businesses adapt their shipping strategies in real-time.
Conclusion
With the potential for increased tariffs looming, now is the time for businesses to act decisively. By assessing inventory needs, optimizing logistics, increasing order quantities, exploring alternative suppliers, leveraging technology, and staying informed, companies can successfully ship extra containers of inventory into the U.S. and minimize the impact of rising tariffs. Taking these steps safeguards current operations and positions businesses for success in an uncertain trade environment.
About Verde Fulfillment USA
Verde Fulfillment USA has 11 fulfillment centers in six cities across the US. We help hundreds of brands with their direct-to-consumer orders, B2B retail orders, and EDI distribution center orders to some of the largest retailers in the country. Contact us if you would like to learn more about our capabilities and how we can help your brand grow. We’re always happy to help! Click Here