As global trade policies continue to shift, tariff-related uncertainty remains a critical issue for manufacturing executives—particularly Chief Operating Officers (COOs), who are charged with managing supply chains, cost structures, and long-term resilience. While some manufacturers are lobbying for product exemptions or weighing cross-border production strategies, others are actively assessing how tariffs impact their competitive positioning and overall procurement plans.
No matter where your organization stands, one truth is clear: Tariff readiness is no longer a one-time adjustment—it’s a continuous, strategic process that requires careful planning, cross-functional coordination, and actionable intelligence.
Tariff readiness starts with clarity. Manufacturing COOs must ask a few core questions to understand their current exposure and areas of opportunity:
Which product categories are most vulnerable? Knowing how tariffs impact your external spend—especially for raw materials or finished goods sourced from affected regions—is essential for budget forecasting and pricing strategy.
Are our inventory and production strategies agile enough? Strategic inventory management or schedule optimization can buffer against sudden disruptions and help smooth cost fluctuations.
Where are our supplier risks? Identifying suppliers most exposed to tariff shifts and evaluating diversification strategies is a powerful way to build resilience.
Can we renegotiate supplier contracts? Introducing tariff-related contingencies, such as cost-sharing mechanisms or flexible pricing clauses, can safeguard your margins.
What’s our competitive position? Understanding your tariff exposure relative to competitors can inform how your products stack up on price, value, and long-term viability in key markets.
These questions serve as the foundation for short- and long-term planning. The more clearly leadership understands its position, the better prepared it will be to pivot in an unpredictable global market.
In the near term, many organizations are renegotiating supplier contracts and tightening inventory practices to manage rising costs. But longer-term strategies are equally critical. A few forward-looking tactics include:
Expanding your supplier base to reduce dependency on any single region or source.
Investing in real-time trade and tariff data tools to monitor developments and drive quicker, smarter procurement decisions.
Creating a centralized “tariff nerve center”—a cross-functional team that coordinates company-wide responses, manages risk, and balances both immediate pressures and future resilience. This structure enables multiple teams to work across timelines and functions, ensuring your strategy evolves in lockstep with the market.
Tariffs aren’t the only pressure facing operations leaders. Rising costs, capacity issues, and the demand for flexibility are forcing many to rethink where—and how—they manufacture products.
Modern supply chain analytics are helping manufacturers redesign their networks by using the principles of design for manufacturing—a concept that emphasizes ease of production, flexibility, and transport efficiency. This renewed focus can reduce exposure to risk while unlocking competitive advantages in how products are developed and delivered.
Visibility also plays a central role. While many companies closely track finished goods, fewer have real-time visibility into raw materials. Ensuring supply chain transparency—from material sourcing to final assembly—helps identify bottlenecks early and allows for more informed decisions. Fostering collaboration across a wider supplier ecosystem can also spark innovation and promote greater supply chain agility.
Ultimately, tariff readiness is not just about procurement or compliance—it’s about operational resilience. Once considered a behind-the-scenes function, operations has now become a central player in strategic decision-making.
COOs who work closely with their supply chain, procurement, and finance counterparts are better positioned to turn volatility into opportunity. By fostering a culture of agility, flexibility, and readiness, organizations can shift from defensive moves to proactive growth—strengthening their competitive edge in an evolving global economy.
At Nathan Wechsler, we help manufacturing leaders evaluate their risks, optimize operations, and build resilient strategies that adapt to changing policy landscapes. If your organization is facing supply chain uncertainty or preparing for tariff-related changes, our team is here to support your planning and execution.
This blog was inspired by insights from Curt Mueller’s article, “Tariff Readiness for COOs.” Read more at Forbes.