In this time of "turbulent tariffs," continuous optimization of the supply chain is imperative, says Dave Salerno, director of 4flow.

Lack of transparency into one’s supply base and insufficient understanding of international commercial terminology (Incoterms) exacerbates the difficulties navigating the uncertainty of tariffs today, Salerno says. “Not understanding who has ownership of the goods at any one point, and the exposure that can bring if it’s not properly crafted in contracts, is problematic. And any company with a global supply chain of any nature is really going to feel the potential impact.”

Mapping one’s supply network, including tier-1 and 2 suppliers, can help mitigate tariff impact, he says. Fully understanding not just inbound but outbound finished goods shipment is advised. Additionally, continuous supply chain optimization, and not just in transportation, is needed.

“You need to first look to see where your exposure is,” Salerno says. “How can I continuously optimize what I have control over? You don't have a lot of control over tariffs today. The government is going to make these changes, but you can control how you optimize today. So whether it's increasing utilization of transportation methods, full truckload, or making mode changes, all those sorts of things really need to be evaluated to at least try to offset your total supply chain costs.”

Data visibility around imports is mandatory, he says. “You’re paying the tariff today, but there's a good chance that next week, next month, next year, trade rules may change. You may want to do a duty drawback. The only way you can do that is having a good understanding of the transactional level data.”

Salerno says additional risk to manufacturers and other importers stems from “gray” or imprecise wording in contracts. Suppliers, for instance, may change pickup points, which may translate into increased costs to shippers.