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Tariffs
Inventory Management Strategies for Overstuffed Warehouses
In the runup to 2018’s round of U.S. tariffs, many companies stockpiled vital materials and components to avoid higher rates. For some U.S. warehouses, that’s led to swelling stock and a proliferation of SKUs. Even when managers find ways to handle increased demand (some of which we discuss here[link to blog titled Tariffs, Stockpiling, and U.S. Warehouses: Finding Capacity in an Age of Pulled Forward Demand]), they’re still left with the challenge of managing increasingly complex inventory.
Tariffs, Stockpiling, and U.S. Warehouses: Finding Capacity in an Age of Pulled Forward Demand
Global trade norms changed dramatically in 2018. Multiple rounds of U.S. tariffs led to fears of rising material prices among U.S. manufacturers. Many companies behaved like any rational institution anticipating a time of scarcity: They stockpiled. The more shoreside materials they could import before the tariffs struck, the longer they’d be able to delay raising their own prices.