Navigating Tariffs: How SMBs Can Stay Prepared, Proactive, and Profitable

Struggling with rising tariffs and supply chain chaos? Discover how SMBs are tackling today’s biggest planning challenges.

Tariffs. Just one word can make any inventory-holding SMB pause.

For many SMBs, the challenges of supply chain management have never been more overwhelming. From rising tariffs to shifting regulations and unpredictable global disruptions, staying on top of everything is a constant battle. One moment, you’re juggling costs and lead times; the next, you’re walking a tightrope, trying to navigate the impact of tariffs that seem to change overnight. It’s tough, and you’re not alone in feeling the strain.

It hasn’t been “business as usual” for supply chains for some time now. From COVID-19 to the Suez Canal blockage, hurricanes to the Baltimore bridge collapse – unexpected shocks keep hitting, and the ripple effects are real. How we make, buy, and sell inventory is changing fast, and tariffs are yet another curveball in an already high-pressure game.

Netstock may not be able to clear the Suez Canal, reopen closed ports, or provide higher shipping capacity, but thanks to Netstock, we can anticipate the logistical impact of this incomprehensible year and activate a Plan B early enough. I can’t even imagine how we would have gotten through this year without Netstock. I would like to express my deepest appreciation for the great support we have received. – Christian Eick, Head of Purchasing, Feuerschutz Jockel GmbH & Co. KG

The rules have changed

Supply chains were once built on steady assumptions: predictable policy, reliable transport, and low variability. But those days are behind us. With tariffs being imposed with little warning, rising regulations, and increasing compliance hurdles, it’s no surprise that supply chain teams are feeling overwhelmed by the challenge ahead.

You can’t afford to ignore tariffs

Our latest tariff survey found that 75% of SMBs still don’t have a plan to manage the impact of tariffs. With 57% of SMBs taking a “wait-and-see” approach, many are delaying action and placing their business at risk. The answer isn’t predicting every change -it’s being prepared with a flexible strategy that can adapt to whatever comes next.

Turning the challenge into an opportunity

While you can’t control the chaos, you can plan for it. With the right strategies and supply and demand planning solutions made smarter with AI, you’ll be more prepared, proactive, and gain the flexibility needed to protect your margins, ensuring your business stays competitive.

Let’s take a look.

1. Prepared: Equip your business with real-time insights

Preparation begins with understanding the landscape. With the right data and insights, you can anticipate potential impacts before they occur. Real-time scenario planning is absolutely vital! We can’t stress this enough. Imagine running ‘what-if’ scenarios to gauge the effects of a 10% or 20% tariff hike on your costs and margins. By doing so, you can adjust your inventory strategies proactively to shield your bottom line. For instance, Edwards Garment, a US-based uniform apparel distributor, leveraged Netstock’s ‘what-if’ analysis to navigate supply chain disruptions. By adjusting lead times in their planning models, they could assess the financial impact of changes and make informed decisions. This proactive approach enabled them to reduce annual write-offs from $1.2 million to $300,000, demonstrating the power of scenario planning in mitigating risks and protecting margins.

2. Proactive: Embrace predictive forecasting

Being proactive means leveraging predictive forecasting to stay ahead of the curve. By analyzing demand trends, you can prioritize high-margin products and minimize exposure to tariff-related losses. Have the tools to monitor how your existing suppliers are performing – to gain better visibility on lead times, improve supplier information and optimize your network. One Netstock customer, Tradeware, now shares 12-month projected order forecasts with suppliers, giving them greater visibility and time to plan. This level of transparency has strengthened partnerships and opened the door to more successful collaboration across their supply chain. Another consideration is diversifying your suppliers to mitigate risk and exploring forward-buying scenarios to stock up on essentials before tariffs spike.

3. Profitable: Make smart decisions to protect your margins

Profitability hinges on making informed decisions that protect your working capital. Balance your stock smartly to buffer against disruptions without overcommitting resources. Optimize your product mix by reducing low-turnover and low-margin SKUs, focusing instead on high-value items. By redistributing excess stock to higher demand areas, you can maintain a healthier cash flow and reduce unnecessary expenses. Race Winning Brands, used the Excess Redistribution functionality to reallocate nearly $430,000 in excess inventory across their network. A single transfer of about $54,000 led to immediate sales and reduced carrying costs. By shifting stock where it was needed most, they freed up capital and gained tighter control over their inventory.

Quick practical wins you can action today

• Educate your team on tariff implications
• Form a tariff response team to track and act on changes
• Run ‘what-if’ tariff scenarios on your top 5 SKUs
• Audit your supplier base for risk exposure
• Review landed cost assumptions in your ERP
• Adjust safety stock levels in high-risk tariff zones
• Keep communication open with key suppliers
• Review and update supplier and vendor contracts with tariff clauses
• Leverage AI planning solutions for smarter decision-making

AI planning solutions is your strategic partner

Uncertainty undermines confidence in your planning and decision-making. While it’s tempting to cut back on investments during uncertain times, relying on outdated systems or manual processes to manage your most valuable asset – inventory – won’t provide the visibility or flexibility needed to make the right decisions for your business.

A smarter way to manage demand and supply is with purpose-built AI solutions that offer data security. With its precision and ability to analyze data faster and more accurately, AI identifies key insights quickly and anomalies down to the SKU level, helping you make smarter, more strategic decisions. When you invest in Netstock’s AI – you immediately gain an ‘always on demand planner’ on your team – no BOT, just a real inventory expert to help you focus on key areas that need urgent attention. Integrating AI gives you the confidence to plan proactively, adapt to change, and protect your margins. According to our benchmark report, only 23% of SMBs reported to have already invested in AI. There’s a huge opportunity for you to take the gap and gain a competitive edge in your market and future-proof your business.

Netstock’s AI is built for your business

Let’s talk about what you need

You don’t have to face disruption alone—Netstock is your strategic partner. Trusted by over 2,500 businesses worldwide, Netstock gives you access to a team of 100+ supply chain experts dedicated to your success. We’ll work with you to build a smarter, more resilient inventory strategy so you can stay prepared, proactive, and profitable, no matter what comes next.