In the face of escalating global trade tensions and unpredictable tariff policies, companies are under increasing pressure to maintain supply chain efficiency and cost-effectiveness.
Technologies like Radio Frequency Identification and automation are emerging as crucial tools for companies striving to adapt and thrive in this volatile environment.
The Tariff Challenge
Recent policy shifts, such as the imposition of substantial tariffs by the United States, have disrupted traditional supply chain models. These changes have led to increased costs, delays, and the need for rapid strategic adjustments. Retailers and manufacturers are finding it increasingly difficult to manage these challenges without adopting advanced technological solutions.
Read Also: Global tariff increases disrupt supply chains: What you need to know
RFID: Enhancing Visibility and Agility
RFID technology offers a transformative approach to supply chain management by providing real-time visibility into inventory and asset movements. This enhanced transparency allows businesses to track goods from the point of origin to the final destination, facilitating better decision-making and responsiveness to disruptions.
Experts in the field note that the transparency provided by RFID technology is instrumental in helping retail procurement and supply chain teams navigate an environment shaped by tariffs and trade uncertainty. With up-to-date data on inventory levels and shipment statuses, businesses can make more agile sourcing and distribution decisions to minimise exposure to high-tariff regions.
Automation: Streamlining Operations
Automation complements RFID by streamlining procurement and supply chain processes. Automated systems can handle tasks such as order processing, inventory management, and supplier communications, reducing manual errors and accelerating response times. This integration of automation ensures that businesses can maintain operational efficiency even amidst the complexities introduced by tariffs.
Automation enables companies to dynamically adjust operations in real time, switching suppliers, rerouting shipments, or adjusting production schedules with minimal disruption. These capabilities are critical in an environment where policy changes can affect supply chains overnight.
AI Integration: Predictive Analytics for Strategic Planning
The integration of Artificial Intelligence with RFID and automation systems further enhances a company’s ability to adapt to tariff-induced challenges. AI-driven analytics can predict potential disruptions, model various supply chain scenarios, and recommend optimal sourcing strategies.
Read More: Supply chain resilience: Lessons from recent geopolitical flashpoints
A global heavy equipment manufacturer recently used AI simulations to assess the impact of sourcing steel from new suppliers. The technology helped the company identify cost-effective alternatives and potentially save millions in avoided tariff expenses. This kind of foresight is invaluable when rapid shifts in sourcing or logistics strategies are needed.
By leveraging these tools, companies can enhance visibility, streamline operations, and make informed strategic decisions that mitigate the impact of tariffs and other disruptions. Adopting such technologies will not only help businesses survive in a challenging environment but also position them for sustained success in the global marketplace.
Cejay is a Content Producer for Supply Chain Channel, Australia's learning ecosystem created to fill the need for information, networking, case studies and empowerment for everyone in the supply chain sector.
