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4 Ways a 3PL Can Help Shippers Navigate Tariff Volatility
Relying on a good third-party logistics (3PL) partner can help you manage tariff volatility. Here’s how:
A fter years of trade instability between the United States and trade partners like China, shippers have become accustomed to fluctuations in supplier pricing and logistics needs. Still, recent tariff policies have introduced new levels of instability into the market, with changes often happening so rapidly that businesses have struggled to keep up. As supply chain professionals have learned from previous trade wars and the COVID-19 pandemic, riding out unexpected, unpredictable market fluctuations requires building resilience into the supply chain. One aspect of building a more resilient infrastructure involves engaging with partners that can help you bolster your capabilities and respond quickly to disruptive elements. In uncertain times, one of the best things you can do for your supply chain is lean on a good third-party logistics (3PL) partner. Here are four ways that a 3PL can help you manage tariff volatility. 1. Scaling Logistics Infrastructure Many companies—and especially retailers—react to disruptive elements in the supply chain by buying large volumes of inventory, buying time to think as leaders evaluate new market conditions and consider new strategies and solutions. The challenge here is that when an organization suddenly orders a large, unplanned volume of safety stock from its suppliers, that extra inventory needs somewhere to go. A 3PL can help these businesses quickly scale up their storage capabilities by adding more facility locations, cross-docking inventory, or implementing other strategies to
relationships with customs brokers that can help ensure that shipper customers stay compliant even as rules change rapidly. 4. Supporting Demand Planning With tariff proposals in flux, shippers may find themselves asking what they need to order today and what can wait
until rules become more final. A logistics partner can help a
business sort through critical historical data on which goods consumers are likely to order, which inventory moves slowly and won’t need immediate replenishment, what buyer trends looked like during previous trade disputes, and more. This information can help organizations avoid overspending on inventory replenishment as they try to place accurate orders in an unstable trade environment. Trade disputes might happen on the global stage, but the impact of these policies can be felt at home if a company doesn’t take steps to mitigate cost impacts and build resilience to disruption. Support from a strategic 3PL partner can help business leaders make the best of an unpredictable situation.
help avoid bottlenecks and prevent unnecessary disruptions and delays.
2. Establishing New Suppliers One of the stated goals of the current tariff policy is to bring sourcing and manufacturing back to the United States. This action requires more from a business than simply shifting to a U.S. supplier, however. New supplier contracts also mean evaluating and hiring carriers in new lanes and figuring out how to integrate this new inbound inventory flow into existing processes. A logistics partner can help companies seamlessly weave new suppliers into existing infrastructure or make any necessary adjustments to accommodate new supplier locations. 3. Navigating New Rules When tariffs are implemented and paused with little or no notice, it can be confusing for shippers as they try to figure out which tariffs apply on any given day. Expert support can be critical in this type of environment to avoid unnecessary fines for non-compliance. Even if the 3PL itself is not a customs brokerage, it will have established
—By Robert Kriewaldt
Vice President Phoenix Logistics Robert@Phoenix3PL.com phoenix3pl.com 920-915-9746
20 Inbound Logistics • January 2025
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