Since President Trump's re-election, global trade wars have become dramatically more aggressive and disruptive than many anticipated. The current environment has brought unprecedented challenges, with sweeping tariffs reaching 20-75% on imports from China, but also significant tariffs on traditional US allies such as Canada, Mexico and Europe. The result is a seismic shift in global trade that is only just beginning to play out.
AI-driven procurement solutions like Didero offer a clear path to navigate these complexities. We provide here a tactical, step-by-step process for procurement teams to prepare for and mitigate the impacts of tariffs, supported by AI capabilities that streamline every stage.
Immediate Impact of Tariffs
Current Tariff Realities
- Severe Cost Increases: Tariff rates now rival levels not seen since World War II, driving up costs on imported goods across a wide range of sectors
- High Uncertainty: With tariffs targeting both U.S. allies and adversaries—and often announced with little warning—companies face constant unpredictability and shifting rules
- Supply Chain Upheaval: Companies are scrambling to adjust supply chain footprints, causing widespread logistical disruptions and operational strain
- Operational Overload: Procurement teams are overwhelmed by manual adjustments to rapidly shifting sourcing needs, underscoring the urgent demand for automation and smarter tools
What Supply Chain Leaders Should Do Now
Step 1: Assess Your Exposure
Start by evaluating how exposed you are to current and potential policy changes across multiple scenarios. Focus on your highest-spend and most critical suppliers to identify where you're most vulnerable. A clear view of exposure sets the foundation for smart, strategic adjustments.
Step 2: Triage and Prioritize
With exposure mapped, prioritize suppliers and materials to de-risk based on potential tariff impacts. Look at risks through the lens of cost, availability, and operational disruption. A sharp priority list lets you focus on the most urgent vulnerabilities and take swift, targeted action where it matters most.
Step 3: Identify and Qualify Alternative Suppliers
Actively explore alternative suppliers—especially in diverse geographies—to hedge against uncertainty. Prioritize partners with flexible, global manufacturing footprints and thoroughly vet them for reliability, quality, and compliance. Pre-qualifying these suppliers now ensures you're ready to pivot quickly as new tariffs emerge.
Step 4: Develop and Execute a Strategic Action Plan
Once alternatives are lined up, create a clear, actionable plan to onboard and manage them effectively. This plan should balance speed and rigor, enabling fast integration without sacrificing quality. A disciplined approach to supplier management will ensure resilience while diversifying your supply base.
How AI Can Simplify and Accelerate the Process with Didero
Without AI
- Manual-Heavy and Time-Consuming: Conducting exposure analysis, supplier discovery, and risk assessments requires countless hours of research and dedicated resources.
- Resource Intensive: Identifying alternative suppliers and managing communication and compliance across geographies often demands a large team and substantial time, especially for companies adjusting to multiple new countries or regions.
- Limited Real-Time Visibility: Tracking suppliers across different geographies and adjusting plans to shifting tariffs can be challenging without real-time, centralized data.
With a Solution Like Didero
- Automated Exposure Analysis: Didero’s AI rapidly identifies exposure across your supply chain, providing clear insights on where you’re most at risk and eliminating the need for time-intensive manual assessments.
- Supplier Discovery and Prequalification: Didero’s AI-powered sourcing identifies and prequalifies suppliers in tariff-friendly regions, saving time and minimizing headcount requirements. This automation allows procurement teams to quickly source alternatives without heavy manual oversight.
- Streamlined Onboarding and Management: Automated workflows simplify onboarding for new suppliers, ensuring quality and compliance from the start. With real-time tracking, Didero allows ongoing management without needing additional personnel to oversee complex multi-region supply chains.
- Efficient Resource Use: By automating core procurement tasks like purchase order management, spend analysis and three-way matching, Didero enables your team to focus on strategic decisions, such as building relationships or planning for future changes, rather than operational grunt work.
Staying Competitive Amid Tariff Increases
- Strategic Sourcing Decisions: With insights from Didero’s AI, supply chain leaders can make informed sourcing choices that balance quality, cost, and resilience, minimizing the overall impact of tariffs.
- Enhanced Visibility into Spend and Supplier Performance: Real-time insights into spend and supplier reliability allow procurement teams to make proactive adjustments, helping the business stay agile and competitive.
- Focus on High-Value Tasks: By automating labor-intensive processes, Didero empowers teams to concentrate on high-impact strategic sourcing activities, which strengthen purchasing power and adaptability amid rising costs.
Conclusion: AI as a Strategic Solution for Tariff Resilience
For manufacturers and distributors grappling with today’s unprecedented tariff upheaval, AI-powered platforms like Didero offer a critical advantage. As tariffs have surged and shifted unpredictably over the past few months—impacting suppliers and materials across industries—Didero automates risk assessment, supplier discovery, and supplier management to help companies stay ahead. By reducing resource strain and enabling rapid supplier pivots, Didero gives businesses the agility to adapt in real time, diversify supply chains, and protect margins. In a trade environment defined by volatility and retaliation, Didero equips companies to build resilient, cost-effective supply chains that can weather any shock.
