NetSuite for Manufacturers: Navigating Global Tariff Uncertainty

Manufacturing in Uncertain Times

‍

Global trade dynamics are in flux. Changing tariffs and trade policies have become the norm rather than the exception, creating a climate of uncertainty for manufacturing businesses. Trade policy uncertainty is now at historic highs, weighing heavily on business confidence and long-term planning​. Manufacturers are feeling the impact: many are delaying investment decisions, reassessing supply chain strategies, and stepping up risk management as they brace for the next policy change.

‍

This uncertainty isn’t just abstract economics – it has real operational consequences. A sudden tariff hike on essential raw materials or components can disrupt supply chains, throw off cost forecasts, and introduce new regulatory hoops to jump through. For example, recent years have seen frequent shifts in trade agreements and import duty rates as governments respond to economic pressures​. Evolving trade policies have introduced new compliance requirements – from additional customs duties to value-added tax (VAT) rule changes and extra reporting obligations for global supply chains​. Meanwhile, broader economic and political factors (inflation, trade disputes, even global pandemics) lead to constantly fluctuating tariff rates​, making it hard for manufacturers to predict costs and plan confidently.

‍

In this challenging environment, manufacturers are asking:

How can we handle tariff uncertainty and protect our business?

The answer for many forward-thinking companies is to invest in adaptability and visibility. In fact, many manufacturers are turning to modern Enterprise Resource Planning (ERP) solutions to stay agile​. An integrated cloud ERP like NetSuite offers tools to mitigate the risks of tariff volatility – providing the real-time data, automation, and flexibility needed to adjust course quickly. In the sections below, we’ll explore the impact of tariff changes on supply chains, costs, and compliance, and more importantly, how NetSuite for manufacturers can act as a stabilizing force. Key capabilities such as real-time visibility, automated compliance, flexible supply chain management, and data-driven decision-making make NetSuite ERP an invaluable ally for manufacturers navigating global trade uncertainty.

The Impact of Changing Tariffs on Manufacturing

Tariff and trade policy changes hit manufacturers on multiple fronts. Understanding these pain points is the first step toward finding a solution. Here are the key areas where tariff uncertainty affects manufacturing businesses:

• Supply Chain Disruptions: Tariff changes can force sudden shifts in where and how manufacturers source materials. A new import tariff might make a previously cost-effective supplier too expensive overnight, requiring manufacturers to find alternative suppliers or countries for raw materials​. In recent trade disputes, for instance, a 25% U.S. tariff on imported steel and 10% on aluminum triggered retaliatory tariffs abroad – pushing companies to rethink their global supply chains and even consider relocating operations​. Such disruptions increase lead times and complexity, demanding a more flexible supply chain design.
• Cost Volatility and Planning Challenges: Tariffs essentially act as taxes on imports or exports, so when they fluctuate, so do material and production costs. Manufacturers struggle with cost predictability – a tariff hike can erode profit margins or force product price increases with little warning​. For example, a significant tariff increase on a key input like steel can translate into millions or even billions in extra costs industry-wide​. This volatility makes budgeting and forecasting difficult. Companies must constantly revise pricing strategies and financial plans to account for new duty rates or trade-related expenses, which can be a nightmare without the right tools.
• Compliance and Regulatory Burdens: Each change in trade policy often comes with new rules. Manufacturers must ensure they classify products correctly, file accurate customs documentation, and adhere to any trade agreements or restrictions in place. Keeping up with tariff codes, export/import licenses, and reporting requirements across different countries is complex and error-prone when done manually. Evolving trade policies in recent years have added layers of compliance work – from new customs duty rules to additional filings for cross-border shipments​. Failing to comply can result in fines, shipment delays, or loss of trading privileges, so manufacturers must be diligent. The administrative overhead of compliance can grow quickly as policies change.

In short, tariff uncertainty can disrupt the flow of materials, muddle the true cost of goods, and tangle manufacturers in red tape. These challenges underscore why manufacturers need to stay agile and informed. Reacting to every new tariff by scrambling spreadsheets or reorganizing suppliers at the last minute is not a sustainable strategy. This is where technology comes in. As one NetSuite publication noted, manufacturers, distributors and retailers can leverage technology to adapt to a business environment where tariffs and trade wars are making daily headlines​. The right system can act as a shock absorber for your operations, maintaining stability amid chaos.

Next, we’ll delve into how NetSuite ERP specifically helps manufacturing companies handle these issues head-on.

How Manufacturers Can Handle Tariff Uncertainty (with the Right ERP)

Facing a constant barrage of tariff changes, manufacturers need a proactive approach. Traditional, manual methods fall short when you must rapidly reconfigure supply lines or re-calculate costs. That’s why many manufacturers have embraced digital solutions and robust ERP systems to cope with tariff uncertainty​. In practice, handling tariff volatility comes down to a few key capabilities:

1. Staying informed in real time: You need up-to-the-minute information on your supply chain and financials. When a new tariff is announced, its effects (like increased landed cost of a component) should be immediately visible in your system. Real-time awareness lets you respond before a minor issue becomes a major problem.
2. Flexibility in your operations: Agility is crucial. This might mean quickly switching to an alternate supplier in a different country if tariffs make your current source untenable, or adjusting inventory levels and production schedules preemptively. A flexible supply chain and inventory management process can save you from high costs or stockouts when trade conditions change suddenly.
3. Automation for compliance and costing: Given the complexity of global trade rules, automation is your friend. Companies should automate the application of tariff codes, calculation of duties/taxes (landed cost), and generation of required documentation. Automation reduces human error and ensures no shipment slips through without the correct compliance checks and cost accounting.
4. Data-driven planning: Finally, manufacturers handling uncertainty well are those who plan for different scenarios. Using data analytics, they run “what-if” scenarios (e.g., what if a 10% tariff is imposed on part X?) and prepare contingency plans. Good ERP systems provide reporting and business intelligence to support these data-driven decisions. Instead of reacting blindly, you can adjust strategy based on insights – for example, shifting your market focus or product pricing in anticipation of a tariff impact.

In essence, manufacturers need an ERP for tariff compliance and agility – a system that combines real-time visibility, flexible supply chain management, automated compliance, and decision-support analytics all in one. NetSuite offers exactly these capabilities. Let’s look at how NetSuite ERP helps manufacturers navigate tariff uncertainty through its key features and modules.

NetSuite ERP Features that Empower Manufacturers in Uncertain Times

NetSuite is a unified cloud-based ERP platform designed to give businesses a 360-degree view of their operations. For manufacturers dealing with global trade volatility, NetSuite provides several key features to maintain stability and control:

‍

1. Real-Time Visibility & Control

• Unified Data Platform: NetSuite’s single, unified platform ensures real-time visibility of consistent, accurate data from across your supply chain​. This means all departments – from procurement and production to logistics and finance – are looking at the same up-to-date information. When conditions change (like a sudden tariff announcement or a supplier delay), you can see the impact immediately and respond swiftly​.
• Live Inventory and Order Insights: Manufacturers get real-time insights into inventory levels, orders in process, and shipments in transit. With NetSuite supply chain management tools, you can track goods globally in real time. For example, if a tariff delay causes a shipment reroute, NetSuite updates that information instantly, alerting your team to potential issues. This level of visibility helps prevent unpleasant surprises and enables agile decision-making. You always know where your products are and what they’re costing you.
• Global Operations Visibility: For manufacturers operating in multiple countries, NetSuite provides a consolidated view of international operations. Multi-currency financials, inventory across all warehouse locations, and production data are integrated. You can drill down to see, say, how a new EU trade regulation affected your European distribution center versus your Asia-Pacific suppliers. This holistic visibility is invaluable when navigating global trade turbulence.

2. Automated Compliance and Tariff Management

• Tariff Code Management: NetSuite has built-in functionality to manage tariff and Harmonized System (HS) codes for your products. You can define and assign specific tariff codes to each inventory item, ensuring that every imported or exported product is classified correctly​. This automated classification saves time and helps maintain compliance with customs requirements by always using the correct codes for shipments.
• Landed Cost Calculation: One of the most powerful tools in NetSuite for global trade is its landed cost calculation engine. NetSuite can automatically calculate all the extra costs associated with importing goods – duties, import taxes, shipping, insurance, brokerage fees, etc. – and roll them into the total cost of the item​. By automatically factoring in applicable duties and fees, you get an accurate picture of true product costs in real time. This is critical for pricing and margin analysis; companies gain a clearer understanding of their total cost structure and can adjust prices or sourcing accordingly​.
• Customs & Duty Tracking: NetSuite tracks tariff rates and duty percentages for different countries and categories of goods, and it supports real-time calculation of these charges during purchase and sales transactions​. In practice, when your purchasing team creates a PO for imported materials, NetSuite can automatically apply the correct duty rate based on the item’s HS code and origin. This ensures ERP for tariff compliance in every transaction – no missed fees or compliance steps. The system’s ability to update calculations as tariffs change (e.g., if a duty rate goes from 5% to 10%, the system can reflect that immediately) keeps your cost accounting accurate and compliant.
• Integrated Documentation and Reporting: Because NetSuite’s tariff management is part of the core system, it seamlessly integrates with your financials and procurement processes. Tariff codes and costs are automatically applied on purchase orders, sales orders, and invoices, providing transparency in cross-border operations. NetSuite can also generate reports on tariff-related costs and expenses, helping your team stay audit-ready and informed​. With detailed records of duties paid and compliance documents, you’ll be prepared for any customs audits or regulatory reviews. Automated reporting and audit trails reduce the headache of managing paperwork manually.

3. Flexible Supply Chain & Inventory Management

• Multi-Sourcing and Supplier Management: NetSuite’s supply chain tools give manufacturers the flexibility to respond when tariffs disrupt the status quo. Because you have global visibility into your supply chain, it becomes easier to identify alternative suppliers or sourcing countries if needed​. For instance, if a tariff makes components from Country A too expensive, you can quickly find and evaluate a supplier in Country B within NetSuite’s vendor records. The system can help compare landed costs from different suppliers, enabling a swift pivot to maintain margins.
• Adaptive Inventory Strategies: With NetSuite, manufacturers can implement agile inventory management strategies to buffer against uncertainty. You can adjust safety stock levels or reorder points based on geopolitical news – for example, temporarily increasing stock of an imported part before a tariff is enacted (to beat the tariff effective date), then scaling back after. NetSuite Inventory Management provides real-time visibility into inventory across all locations, so you can redistribute stock or prioritize fulfillment from a particular warehouse to avoid high tariff zones. If a sudden tariff causes a delay at a port, the system’s visibility allows you to reroute orders from another warehouse that has inventory, ensuring continuity in customer fulfillment.
• Production and Capacity Flexibility: For manufacturers who might shift production locations due to trade policy (e.g. moving some assembly to another country to circumvent tariffs), NetSuite’s unified platform supports multi-site manufacturing. All production data from various plants feeds into the same ERP, so even if you relocate operations overseas, you maintain one version of the truth. NetSuite ERP handles multi-subsidiary and multi-country operations with ease (multi-currency financials, local tax compliance, etc.), which means your supply chain remains cohesive and controlled. This flexibility to reconfigure your network – whether it’s outsourcing, offshoring, or dual sourcing – is a key advantage in an uncertain trade climate.
• Tech-Enabled Supply Chain Resilience: By leveraging cloud technology, manufacturers build more resilient supply chains. NetSuite enables strategies like just-in-time delivery, lean inventory, or diversified sourcing, with the data to back up each decision. A tech-enabled supply chain helps avoid excessive fees and last-minute scrambling. In fact, a flexible, tech-enabled supply chain can help companies avoid many excessive tariff-related costs and improve overall efficiency. The ability to adapt quickly (for example, rerouting shipments or switching input materials) can mean the difference between absorbing a tariff’s impact or passing costs to customers. NetSuite gives you the tools to make those adaptations smoothly.

4. Data-Driven Decision Making

• Analytics & Dashboards: NetSuite ERP comes with robust analytics and reporting capabilities (including SuiteAnalytics). Manufacturers can create dashboards that track key indicators like total landed cost per item, duty spend per month, or profit margins by region. When a new tariff hits, these dashboards immediately reflect its impact on costs and margins, providing a factual basis for decisions. Real-time cost tracking combined with automated reports gives manufacturers the insights needed to make data-driven decisions and optimize supply chains​. Instead of guessing, you can see the numbers change and react accordingly.
• Scenario Planning: Beyond standard reporting, NetSuite allows for “what-if” analysis through its financial planning tools (or integrations with planning software). Businesses can model different tariff scenarios – for instance, What if a 15% tariff is imposed on our electronics components? – to see how it would affect the cost of goods sold, inventory carrying costs, or pricing strategies​. By simulating these scenarios, manufacturers can develop contingency plans. NetSuite’s data enables informed decisions such as whether to stockpile certain materials, seek a tariff exemption, or raise product prices. Companies that use data in this way can stay one step ahead of policy changes rather than reacting after the fact.
• Informed Global Strategy: With comprehensive reports on tariff costs, margins, and performance by market, NetSuite helps executives make strategic decisions about where to produce and sell. The system can generate detailed reports on tariff-related expenses across your supply chain. These reports might reveal, for example, that one product line is becoming unprofitable due to cumulative tariffs, signaling that it’s time to switch suppliers or lobby for a trade adjustment. Having all your operational and financial data in one place means decision-makers have a full picture when navigating complex trade-offs. NetSuite’s reporting and analysis tools ultimately turn raw data into actionable intelligence for steering the company through uncertain times.
• Compliance and Performance Tracking: Data-driven decision-making isn’t just about costs; it’s also about compliance and risk management. NetSuite keeps a log of compliance activities (duties paid, certifications, country-of-origin for products, etc.). Manufacturers can analyze this data to identify any weak spots – perhaps a particular trade lane that incurs most of the compliance risk or costs. By pinpointing such areas, you can take targeted action (like negotiating with suppliers, or applying for preferential trade programs) to reduce risk. Essentially, the ERP’s data helps you continuously improve how you handle tariffs and trade, year over year.

Final Thoughts: Thriving Amid Tariff Uncertainty

The global trade environment may be uncertain, but manufacturing businesses don’t have to navigate it blindly. As we’ve discussed, changing tariffs and trade policies create serious challenges – from supply chain disruptions and cost volatility to heavy compliance burdens. However, with the right systems in place, these challenges can be met head-on. NetSuite for global trade is about giving manufacturers the tools and information they need to adapt quickly and maintain control, even as external conditions shift.

In today’s world of trade wars and rapid policy shifts, agility and insight are a manufacturer’s best allies. NetSuite ERP brings both. It offers real-time visibility across your operations, ensuring you’re never caught off guard by a new tariff or regulation. It automates compliance and cost calculations, so you always know your true costs and stay on the right side of the law. It provides the flexibility to reconfigure supply chains on the fly, and the data analytics to drive smart, strategic decisions. In short, NetSuite acts as a stabilizing force – a cloud-based platform that enables manufacturers to turn uncertainty into opportunity.

Manufacturers who leverage technology are finding that they can not only weather the tariff storm, but even thrive in it. By deploying intelligent automation to manage international trade costs, NetSuite allows your operations team to navigate the global trade environment with precision. Instead of reacting in panic to each headline, you’ll have a solid game plan supported by accurate data and efficient processes.

In uncertain times, the manufacturers that succeed are those who stay informed, remain flexible, and use every tool at their disposal to mitigate risk. NetSuite ERP for manufacturers embodies this approach. It empowers companies to handle tariff uncertainty proactively – maintaining supply chain fluidity, protecting profit margins, and ensuring compliance with minimal manual effort. With NetSuite in your corner, tariff and trade policy changes become more manageable variables in your business equation, not existential threats.

Empower your manufacturing business with the visibility and agility it needs to conquer tariff uncertainty. By investing in a robust solution like NetSuite ERP, you equip your company to adapt and excel no matter how global trade winds may shift. The result is a more resilient operation that turns volatility into competitive advantage – keeping your business on course toward growth, despite the uncertainties of the world economy.