With recent news about tariffs that the United States is creating a cascade effect – with the possibility that perhaps it may still do something more for you – it becomes important to understand how these tariffs can impact you and your organization. This blog is not about politics or economics, it is about something more practical. The goal is to always encourage them to analyze the data as the rates are implemented, instead of looking back when it may be too late. 

A quick review of rates 

Simplifying, tariffs are imposed on imported goods. The fact is that the value of imports becomes higher, theoretically, that the price of local products becomes more attractive. For example, if a Widget costs R$1.00 to be produced in country This way we can make the local option more attractive. Of course, various factors exist in the consumer's purchasing decision, such as quality and brand, for example. But we will leave this discussion to the politicians and economists. 

Because you need to monitor the impact of rates 

With tariffs directly impacting the supply of demand, it is possible that we find ourselves in a situation of expanding our production to suppress growing local demand, or in the best possible way, tracking remaining demand to adjust to production and become more competitive. Waiting and seeing can put you in a difficult situation. 

Step 1 – Be proactive: start modeling “e se…” scenarios with Simul8

 I will later ask you about the impact of the rates on your business. At first, simply saying “we are evaluating” may be enough, but eventually you will need to quantify your risks and develop contingency plans. Take advantage or power discrete event simulation for simulate interruptions in the supply chain. All these types of analyzes will help you find opportunities for success in any field, as well as many other users of Simul8 applying them in their logistics and supply chain operations. 

Step 2 – Use Minitab to identify moves 

When Covid hits us, we make many articles about the impact on the supply chain line, in order to improve its efficiency and neutralize its effects on the supply chain lines. Unfortunately, many of us do not imagine a pandemic on the way, consequently, we have to react without prior notice. For rates, we have a warning. We know that these things will change, we do not know how much will change or what will be the most impacted. Minitab offers training and consulting services, as well as resources like this eBook to help anticipate and prepare for disruptions along the supply chain lines: https://info.minitab.com/en/resources/ebook/bullwhip-effect-in-supply-chain 

Now start monitoring changes in real time! 

For some rates, the impact may not be immediate. But as we operate across supply chain lines, we know that these changes will happen, so we will be in front of them and they can be a huge advantage. For others, rates can impact by directly taxing products or opportunities to gain market space, applying statistical analyzes in real time can lead to relevant economies or growth. Even if you are using Minitab now, use the advantages and powers of Minitab Conecct or Real Time SPC that allow you to generate dashboards in real time and alerts so that it is possible to restart changes as soon as they occur, instead of restarting as soon as they happen.

Official Source: Minitab

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