As ERP software (Chicago) consultants, we understand how uncertainties can rock manufacturers’ plans. Manufacturers like certainty. I think we all do. We like to know that our lives are predictable, and that goes for businesses, too. Manufacturers thrive when they can predict supply chain availability, pricing, shipping times, and more.

Tariffs recently imposed by the United States on goods imported from other countries have raised the anxiety level to an “11” out of 10 for many manufacturers. It’s added costs they weren’t anticipating, and that means margin and pricing uncertainty. 

We have a solution for you. Enterprise resource planning, or ERP software, for Chicago-area manufacturers can help you manage these uncertainties a little better. Here’s how.

How ERP Software Can Help Manage Tariff Uncertainties 

Tariffs. What else can we say? They’ve been a lot more disruptive to manufacturing than anyone could guess. Smart manufacturers are turning to risk-management strategies and pulling alternatives from their bag of tricks, like nearshoring opportunities to fill supply chain gaps, to offset these disruptions. And how are they managing all of this? By using a solid manufacturing ERP. 

Manufacturing ERP keeps everything organized and running smoothly. It helps companies plan production schedules, manage inventory and materials, track quality, and handle purchasing and finances all in one system. With everything connected, from raw materials to finished products and customer orders, teams can work smarter and faster. It’s basically the behind-the-scenes hero making sure machines stay humming, deadlines are met, and no one’s stuck wondering where that one shipment went. 

Total Landed Cost (TLC)

Many ERP vendors are now adding features to their software to help manufacturers manage the impacts of tariffs. One example is managing total landed cost (TLC). TLC calculates the total cost of shifting supply chain sources to nearby vendors.

Think about it. In the past, if you imported goods from Country X, and Country X had a very low price point for those goods, you could calculate costs based on price and shipping. Tariffs add a new dimension, as does shifting suppliers to nearshore companies. The base price of the goods may increase, but shipping may decrease, and it eliminates tariffs from the equation.

Calculating these values across hundreds, if not thousands, of parts and supplies across the supply chain gets crazy. ERP software can calculate the difference in seconds, providing you with up-to-the-minute data that helps you keep costs under control while maximizing your supply chain resources. TLC is just one example but a good one of how ERP software can help manage tariff risks.

Harmonizing Tariff Schedule (HTS) Codes

Here’s another example: tariff schedule codes. These number codes classify goods for the global market. They change frequently, which makes keeping them up to date using manual methods, like spreadsheets, ridiculously time-consuming.

Many ERP vendors are adding this feature to their manufacturing software just for this reason. With the tariffs changing rapidly and codes changing frequently too, ERP software that updates this information automatically is a great time-saver for manufacturers.

Reconsider Product Design

Part of good product design is conjuring from the outside the sources needed to create the finished product. Now that we know that we’ll face tariffs to import from certain countries, manufacturers should consider these costs at the start of the design phase rather than midway or at the end. It’s easier to make design changes on paper before production has begun than to scramble to find new suppliers to get costs down later when you’re almost ready to finish the product.

ERP Software Chicago Area Consultants

As ERP software, Chicago area consultants, we know the pain manufacturers are feeling from the tariffs. But it can be short-lived pain if you take the right steps now to address the extra costs. Take a multi-pronged approach. You need to shift suppliers, you need information, and you need ERP automation to make it all easier. Although the tariffs may not be around forever, they’re here now, and we need to deal with them. Let’s talk about how manufacturing ERP software can help.

PositiveVision

Positive Vision is a Chicago-area ERP consulting firm with experience helping manufacturers solve problems with the right software and strategy. We would be happy to assist you in choosing the right ERP for your business and ensuring that its launch is smooth and effective. Contact us to speak to one of our product experts about a customized solution today.