Tariffs Rising? How Retailers Can Navigate Uncertainty with AI-Powered Demand Planning

The retail landscape is bracing for impact. Rising costs, labor shortages, and the looming threat of new tariffs are creating a perfect storm of uncertainty. According to a WSJ article, president-elect Donald Trump pledged that soon after taking office he will start imposing steep tariffs on Mexico and Canada, two of America’s closest allies, as well as China. This will likely cause supply disruptions and quickly shift trade policies.

These tariffs could send shockwaves through your supply chain, forcing you to make tough decisions about pricing, sourcing, and inventory management.  

Don’t get caught off guard – AI-powered demand planning can help you weather the storm. 

What Retailers Are Up Against 

• Supply Chain Chaos: Unexpected world events can cause major disruptions to how retailers get their products. You need to be ready for sudden changes in product availability, rising costs, and potential shipping delays. 

• The Tariff Effect: New tariffs can seriously impact your profits. If your imported goods become more expensive, you might have to raise prices for your customers, which could affect your sales. 

• Customer Whims: It’s harder than ever to predict what customers will want. You need to accurately forecast demand to make sure you have the right products in stock at the right time, without ending up with a bunch of unsold inventory. 

• Tech Takeover: The retail industry is changing fast. To stay competitive, you need to use technology like AI and machine learning to give your customers a personalized experience, set the best prices, and manage your online and in-store operations smoothly. 

AI-Powered Supply Chain is Your Partner in Uncertain Times 

Here’s how Algo can help you tackle today’s challenges: 

• Weather the Storm: Imagine a sudden tariff on those trendy imported shoes everyone wants. Algo helps you quickly figure out the impact, find other suppliers, and adjust your plans to keep your shelves stocked. 

• Plan for the Unexpected: With Algo, you can run “what-if” scenarios. What if tariffs on electronics go up by 15%? How will that affect your pricing and sales? Algo helps you answer these questions and make smart decisions. 

• Stock Smart: Algo gives you incredibly accurate forecasts, down to the individual product level, and even tells you what to stock in each of your stores. This helps you manage seasonal items, promote popular products, and avoid running out of stock during those busy shopping seasons. 

• See the Big Picture: Algo connects with your existing systems (like those for managing inventory and customer data) to give you a complete view of your supply chain. This helps you spot problems, optimize your operations, and become more efficient. 

• Expand with Confidence: Thinking about opening a new store or moving your operations? Algo helps you analyze the potential impact of these decisions by providing accurate demand forecasts for new locations. 

Don’t Let Uncertainty Derail Your Business 

In today’s ever-changing world, retailers need to be ready for anything. Algo’s demand planning solutions give you the tools and information you need to overcome challenges and thrive. Ready to see how Algo can revolutionize your business? Contact our sales team for a free demo today!