Retailers are dealing with the after-effect of rising tariffs on the global economy and attempt
to articulate new supply chain strategies as global trade becomes eventually more problematic.
With product categories seeing increased import duties, there has been the issue of increased
expenditure, reduced profits, and difficulty in inventory control. The primary challenge is –
how can retailers respond with a satisfactory answer that will still keep prices reasonable and
shelves equipped?
At Mahalogix, we help clients resolve these issues through intelligent logistics services that
are improved and budget friendly while making sure business continuity despite the fluctuations
in international trade.
Impact of New Tariffs on The Retail Sector
Import duties charged on goods are termed tariffs. In such a case where these rates increase,
businesses are left with the options to either accept and eat the cost or let it drop down to
the consumers. Which would likely mean:
- Increase in Price - Retailers would be forced to increase their prices in the market to fund the business sufficiently.
- Problems in the supply chain - Manufacturers and suppliers finding other suppliers resulting in slow shipment of goods.
- Source uncertainty - Businesses may have to move operations to different countries so as to not pay high tariffs.
What Retailers Have Done So Far 1. Change terms of supplier agreements Many management decisions are being taken by the businesses toward suppliers to achieve lower cost agreements or look for alternative suppliers. Some retailers have started production in low tariff regions to cut on costs.
In Mahalogix, we help retailers to find alternative sourcing markets and supply chain route enhancement. These techniques decrease disruptions and delays. 2. Shipping Strategy changes Logistics cutting costs is becoming important with tariffs increasing expenses. More smart retailers are:
- Saving on freight costs by merging shipments.
- Securing bonded warehouses to suspend payment of duties till the goods are sold.
- Importing less by predicting with data analytics.
Such businesses look for help in order to stay ahead of delays and shortages. This can be enabled through real-time inventory tracking and demand forecasting.
The Mahalogix Advantage: Overcoming tariffs without hassle
Retailers are able to depend and get assistance during difficult times. At Mahalogix we offer:
- Complete support on trade policies and tariffs to make sure your business remains compliant.
- Cost and time saving transit services that save money and time.
- Experienced inventory management along with warehousing to sustain other operations.
Looking for a perfect logistics partner to help with tariffs? Mahalogix International is ready to help. Contact us today and let's create a better supply chain together.
