Tariff Mitigation Case Study

 

DSC05352The first round of tariffs have kicked in on components originating in China. Our distribution partners are tracking this and billing the tariffs at the end of the month. We are auditing their charges against our records and are passing along these costs to customers.

We are also working to mitigate tariffs wherever possible. The software tools we have are helpful in identifying country of our origin and alternate sources. We are also identifying suppliers & quoting current custom parts not in China. Here is our most recent cost reduction example:

Tariff Mitigation Case Study

Recently a customer wishing to mitigate China-related tariffs asked us look at alternate suppliers. We were able to identify another Asian source outside of China. The end result was the part cost was reduced from 23 cents to 16 cents, which represented nearly a $35,000 annualized savings in addition to eliminating the tariff cost.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: