#USA #Chicago #Kearney #Tariff Model #Anaplan

Kearney Unveils Advanced Tariff Impact Solution

In a significant development for businesses navigating the challenging landscape of tariffs, Kearney has launched an innovative integrated solution designed to assist companies in quickly identifying and quantifying the multifaceted costs associated with tariffs. This comprehensive solution will allow organizations to assess their supply chain, margin impacts, and formulate optimal strategies to mitigate the adverse effects.

As the U.S. administration's tariff policies constantly evolve, businesses are increasingly concerned about the potential implications they face and are seeking proactive strategies to respond effectively. The newly introduced Tariff Impact Model from Kearney addresses these pressing concerns, providing an end-to-end solution that is powered by Anaplan's advanced AI-driven scenario planning platform.

Understanding Tariff Management Challenges

The complexities of managing tariffs arise not only from changing policies but also from their diverse impacts on the supply chain and operational costs. Companies must grapple with understanding how these tariffs affect their financial risk and operational efficiency across various scenarios.

Kearney’s solution is tailored to empower organizations by ensuring they have comprehensive visibility into their total risk exposure and potential opportunities related to the current and future tariff landscapes. This involves not only current evaluations but also forward-looking assessments that prepare companies for multiple possible scenarios.

Key Features of the Tariff Impact Model

1. Financial Confidence: The model equips businesses with the necessary insights to fully understand their risk exposure associated with tariffs, fostering a sense of confidence in navigating the complexities of tariff management.

2. Actionable Insights: It highlights specific actions for companies to take, identifying both immediate measures and those that should be part of a longer-term strategic plan. This structured approach ensures that businesses are equipped with the knowledge needed to respond dynamically to tariff changes.

3. Built-In Capabilities: Companies are supported in rapidly building internal capabilities that facilitate proactive planning and execution in response to various tariff-related scenarios. This involves addressing data, technology, personnel, and processes necessary for effective action.

4. AI Integration: Leveraging advanced AI capabilities, Kearney has developed agents that efficiently map products and parts to applicable tariffs within the Harmonized Tariff Schedule. This comprehensive mapping includes understanding how tariffs interact with various trade agreements, thereby providing a clearer picture for organizations.

5. Scenario Modeling: The solution's robust scenario planning and analysis engine allows companies to model a broad spectrum of potential situations. This feature is crucial for assessing their tariff exposure across different factors like products, suppliers, and countries.

Strategic Implications in Tariff Management

As the trade environment becomes increasingly volatile, it is essential for businesses to adapt their strategies. Kearney emphasizes that simply recognizing tariff risks is no longer sufficient; companies need to innovate their strategies to leverage new opportunities while mitigating risks.

Kearney's board member, Ben T. Smith, IV, notes the urgency for businesses to act swiftly. He states, "Businesses must reshape strategies to both mitigate risk and seize emerging opportunities. The window for advantage is closing fast. Now is the time to act."

Similarly, EJ Tavella, Senior Vice President of Supply Chain for Anaplan, stresses the need for organizations to transition from reactive to strategic approaches amid the rapid pace of tariff changes. Real-time visibility into the impacts at the PL level and the ability to adjust decisions dynamically will play a pivotal role in establishing a competitive edge.

Conclusion

Kearney's Tariff Impact Model represents a significant advancement in tariff management, equipping businesses with the tools they need to thrive in an uncertain trade environment. By merging strategic insights with innovative technology, Kearney seeks to transform how companies perceive and react to tariff-related challenges, ultimately enabling them to turn risks into opportunities for growth.

For businesses looking to adapt to these new realities, Kearney’s solution provides a promising pathway forward, ensuring that they not only survive but also optimize their operations in the face of ongoing changes in the tariff landscape.

• ---