Welcome to our series: “How Deposco Helps Navigate Tariffs”
In this post: Global sourcing best practices, supplier management strategies, and solutions to minimize tariff impacts.
- How to manage multi-country sourcing with unified visibility
- Ways to model tariff impacts and make faster sourcing decisions
- Strategies for automating cross-border compliance requirements
- Methods to optimize inventory allocation during trade disruptions
- Best practices for building resilient, adaptable supply chains
Tariff impact on global sourcing
The global trade landscape has never been more volatile. With tariff news creating unprecedented uncertainty and recent announcements of steep tariffs on goods from China, Mexico, and Canada, supply chain executives are scrambling to adapt their multi-country sourcing strategies.
The need to manage inventory seamlessly
We work with companies that source products from China, Turkey, and Mexico while maintaining domestic refurbishing operations. They’re facing the daunting task of tracking landed costs across multiple countries, each with different tariff structures, lead times, and compliance requirements.
If you’re managing inventory from multiple countries, you must find alternative suppliers—but more importantly, you need to maintain unprecedented visibility, control, and profitability across an increasingly complex global network.
Manage purchasing and replenishing all in one system. Bright Source allows you to manage supplier profiles and create purchase orders in draft mode before submitting the order.
Stop managing suppliers in a vacuum, here’s why
The traditional approach of managing each supplier relationship in isolation is no longer sustainable when tariff rates can change overnight and impact your entire cost structure.
Why multi-country sourcing is complex
More to manage
International supplier management involves far more than tracking purchase orders. Today’s supply chain executives must simultaneously monitor:
☑️ Cost Volatility – Real-time tariff changes, fluctuating exchange rates, and varying lead times/shipping costs that create unpredictable landed cost structures across regions.
☑️ Regulatory Complexity – Country-specific compliance requirements and documentation standards that vary by market and product category.
☑️ Operational Decision-Making – Supplier performance evaluation and inventory allocation strategies based on total cost of ownership rather than simple unit pricing.
The landed cost picture
Without unified visibility across these variables, companies often find themselves making sourcing decisions based on incomplete information.
A supplier in Mexico might appear cost-effective until you factor in a new 25% tariff, extended lead times, and additional compliance costs. Meanwhile, a Turkish supplier might offer better total value once you calculate the complete landed cost picture.
Modern WMS enables global sourcing best practices
Deposco’s unified supply chain software addresses these challenges by creating a single source of truth for multi-country sourcing decisions. Rather than juggling multiple spreadsheets and disconnected systems, supply chain teams gain real-time visibility across their entire supplier network.
Evolve seamlessly from a single location to a unified omnichannel fulfillment network with hassle-free scaling.
Tracking supplier management performance
The system tracks key metrics like on-time delivery and cost consistency across all suppliers, regardless of location. This data becomes particularly valuable when evaluating multi-country sourcing alternatives. If a primary supplier in China faces significant tariff increases, you can quickly identify backup suppliers in other countries based on actual performance data, not just initial quotes.
Real-time decision making with integrated analytics
The true power of modern WMS software lies in its ability to provide actionable insights for strategic decision-making. Deposco’s Supply Chain Intelligence (SCI) solution uses AI-powered analytics to help companies like Detroit Axle navigate complex global sourcing scenarios.
Millions of data signals mean nothing without the engine to make sense of it all. See how Deposco’s AI-enabled Supply Chain Intelligence solutions transform a company’s growth.
For example, when new tariffs are announced, the system can model different scenarios:
- What would be the impact of shifting 30% of production from China to Mexico?
- How would lead times and inventory requirements change?
- What’s the break-even point for establishing domestic manufacturing capabilities?
These analyses happen in real-time, using actual transaction data rather than theoretical models. This means supply chain leaders can make informed decisions quickly, rather than spending weeks gathering data and running manual calculations.
The power of Supply Chain Intelligence and AI-driven actionable insights are evident when you witness how a single decision can reshape a company’s entire destiny and value.
Streamlined PO management across borders
Managing purchase orders across multiple countries traditionally requires navigating different currencies, payment terms, compliance requirements, and shipping protocols. Modern supply chain platforms simplify this complexity through automated workflows that handle country-specific requirements seamlessly.
The system maintains supplier profiles that include all relevant details: preferred payment methods, required documentation, shipping preferences, and compliance requirements. When creating purchase orders, the platform automatically applies the correct procedures for each supplier’s location, reducing errors and ensuring compliance.
For finance teams, this automation extends to landed cost tracking, tariff impact, and profitability analysis. Every purchase order includes complete cost breakdowns, making it easier to understand true product margins and make informed pricing decisions.
Case study: navigating tariff impact on global sourcing
The New York Times recently profiled Detroit Axle CEO Mike Musheinesh’s inspiring story of how he’s currently handling the widespread (and constant) challenge of tariffs, facing mounting challenges with 145% tariffs on Chinese imports that represent 75% of his business.
This case illuminates why today’s shifting supply chains demand adaptive WMS technologies like Deposco. They had already relocated some operations to Michigan, Mexico, and Turkey in response to policy changes – creating a complex multi-location inventory scenario that many businesses now face.
Detroit Axle moved from a small local operation to a robust international business with 400+ US employees and operations in three additional countries. Like many manufacturers navigating similar reshoring and nearshoring decisions, being able to leverage the unified inventory visibility within Deposco became mission-critical for Detroit Axle.
Without such systems, businesses face dangerous blindspots when trying to:
- Balance inventory across multiple facilities
- Track parts sourced from different countries
- Maintain service levels while transitioning operations
- Control costs amid policy uncertainty
Having a WMS is a crucial factor in managing your multi-country sourcing strategy through tariffs and other changes. Deposco is driving measurable cost savings, reduced manual effort, and faster decision-making for Mike and his team.
Building resilience to tariffs and future disruptions
The current tariff environment demonstrates the importance of building flexible, data-driven supply chain operations. Companies that rely on manual processes or disconnected systems struggle to adapt quickly when trade policies change.
Those with unified platforms can pivot rapidly, whether that means shifting sourcing regions, adjusting inventory strategies, or identifying new cross-border procurement solutions.
Looking ahead
Trade policy uncertainty is likely to persist. Investing in a modern WMS inventory management system positions your organization to survive these disruptions while gaining competitive advantage through superior decision-making.
The key is moving beyond reactive management to proactive strategy. With real-time visibility across global sourcing, automated landed cost calculations, and AI-powered analytics, companies can anticipate changes and adapt quickly rather than constantly playing catch-up.