Navigating Today’s Import & Export Conversation
Tariffs, Tariffs, Tariffs … when is it going to end? And what if it doesn’t end? Tony Kayyod, Founder & CEO of GlobalOpsNow in Michigan, provides a high-level overview of what every business should keep in mind as the world manages the daily narrative around imports and exports.
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International Trade Headwinds
Every day we wake up to a new rule, a new tariff, another shift that throws plans and budgets into disarray. What was finalized yesterday is uncertain today. Change is the new normal, and it’s testing the limits of supply chains, global and domestic. For years, U.S. businesses chased low costs by outsourcing manufacturing, slowly shipping in-house expertise offshore. Customers focused on price alone, overlooking the true value that suppliers may bring. Mixed emotions are easy to come by, whether that’s frustration with today or nostalgia for the “good old days,” but neither solves anything. The world has changed, and we need to adapt before disruption becomes the default.
Finding That Initial Comfort Level To Minimize Tariff Surprises
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- Ensure you know your supply chain. All of it.
- Assess the impact of additional tariffs on your costs & sales, maybe even on a country-by-country basis.
- Check your customers’ & suppliers’ contract terms.
Questions The Operations Team Must Ask (Sometimes Daily)
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- Who are your competitors & where are they shipping from?
- What are your current classifications and duty rates?
- What is the origin of your goods?
- What about the value of goods sold?
- Are there options for exemptions?
Engineer Smarter Ways To Adapt To Change
Solving today’s supply chain challenges means more than quick fixes. It means rethinking the entire flow. By streamlining hand-offs and increasing productivity, GlobalOpsNow can help you lower the delivered cost to customers and keep price increases competitive and justified.
Real World Situations
When a U.S. manufacturer is hit with import tariffs that double material costs, panic is not the solution. You must adapt. By insourcing non-critical steps, manufacturers can reduce imported volume and cut tariff exposure.
On the export side, some companies face canceled orders due to tariffs in destination countries. The solution? Establish a local presence and source materials regionally, avoiding tariffs and protecting customer relationships.
Rarely is it an easy answer, or a quick fix, much less a permanent solution. Until the supply chain volatility lessens, every waking morning stands to throw a new wrench in the puzzle. All along, it’s imperative to keep the customers’ best interests in mind.
GlobalOpsNow and GBQ can offer strategic perspectives coupled with the appropriate implementation opportunity for each. Reach out to your advisor today to review your options and to consider ways your company can strategically adapt to ongoing disruption.
Guest Article By Tony Kayyod, Founder & CEO, GlobalOpsNow
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