The return of U.S. tariffs on Canadian goods has created an undeniable ripple effect across industries. Rising costs, disrupted supply chains, and tighter profit margins are becoming the new reality for businesses engaged in cross-border trade. For many, this turbulence isn't just about surviving the moment—it's about building systems that help them adapt, respond, and thrive long-term.
While external forces are unpredictable, how you respond internally can make all the difference. This playbook is designed to help businesses leverage ERP (Enterprise Resource Planning) systems to protect margins, stabilize operations, and build resilience during trade disruptions like tariffs.
Why Tariffs Matter? Its More Than Just Extra Costs
Tariffs don’t just increase the cost of goods—they disrupt entire operations:
🔹 Supply chains need re-evaluation
🔹 Vendor relationships may shift
🔹 Inventory strategies are challenged
🔹 Margins are squeezed
For businesses depending on U.S.-Canada trade, this means rethinking not just your sourcing, but your entire process management strategy. This is where ERP plays a key role.
The ERP Playbook for Managing Tariff Disruption
1️⃣ Gain Total Visibility Over Landed Costs
Tariffs introduce variable costs that can erode profitability if not carefully tracked.
Action Steps:
✅ Use your ERP to calculate true landed costs, factoring in tariffs, duties, freight, and fees.
✅ Configure dynamic pricing rules in your ERP to adjust automatically as costs fluctuate.
✅ Monitor margins at the product and customer level in real-time.
2️⃣ Strengthen Supply Chain Resilience
Tariff pressures often force businesses to pivot to alternative suppliers or regions.
Action Steps:
✅ Map all current suppliers in your ERP to assess risk exposure.
✅ Identify secondary suppliers and create automated workflows to switch vendors as needed.
✅ Use ERP purchasing modules to manage lead times, vendor performance, and compliance documentation.
3️⃣ Optimize Inventory to Reduce Risk
Holding too much stock can tie up cash. Holding too little creates stockouts.
Action Steps:
✅ Leverage ERP forecasting tools to optimize inventory levels based on demand shifts.
✅ Use reorder point automation to maintain healthy stock levels, even as sourcing changes.
✅ Analyze slow-moving or tariff-heavy items to determine if product rationalization is needed.
4️⃣ Adapt Pricing Strategies to Protect Margins
Static pricing in a dynamic cost environment is a recipe for shrinking profits.
Action Steps:
✅ Use ERP to implement dynamic pricing models that reflect real-time costs.
✅ Apply customer- or region-specific pricing adjustments to account for tariff impacts.
✅ Run scenario planning in your ERP to assess the effect of various tariff levels on your pricing and profitability.
5️⃣ Forecast for the Future with Confidence
Tariffs are rarely short-term. Long-term planning requires tools to model different scenarios.
Action Steps:
✅ Use ERP’s financial planning modules to run “what if” simulations (e.g., tariff increases, currency shifts).
✅ Create multi-year forecasts that account for supply chain diversification costs.
✅ Share live dashboards with leadership to support informed, agile decision-making.
Long-Term Strategy to Build a Resilient Business
Responding to tariffs is only part of the equation. Use this opportunity to build lasting operational strength by:
✔ Diversifying your supplier network beyond high-risk regions
✔ Automating manual tasks to reduce overhead
✔ Improving data accuracy to support faster, smarter decisions
✔ Scaling without increasing administrative burdens
Tools You Need Inside Your ERP
When dealing with tariff challenges, ensure your ERP has:
✅ Landed cost tracking
✅ Automated purchase orders with vendor alternatives
✅ Real-time inventory management
✅ Financial forecasting and scenario planning
✅ Multi-currency and tax compliance support
✅ Integrated reporting and dashboards
Want to discuss your options?
If your current systems are not equipped to handle these challenges, now is the time to assess:
🔹 Are you getting the data you need, when you need it?
🔹 Can you adapt quickly to shifting costs and regulations?
🔹 Is your team wasting time on manual adjustments that should be automated?
We help businesses like yours assess and optimize their ERP systems to thrive—even in turbulent trade environments.
Simply fill out the below form to schedule a quick, no-pressure call to explore what’s possible.
