Episode Summary: The Tariff Hotline Is Open & We Are Taking Your Calls | Ask An Expert

Podcast Information:

• Title: Omni Talk Retail
• Host: Chris Walton & Anne Mazinga
• Episode Title: The Tariff Hotline Is Open & We Are Taking Your Calls | Ask An Expert
• Release Date: May 20, 2025
• Description: Omni Talk Retail delivers the latest news, analysis, and commentary on trends and issues in the retail industry, featuring insights from industry experts and thought leaders.

Introduction

In this episode of Omni Talk Retail's "Ask an Expert" series, hosts Chris Walton and Anne Mazinga tackle the pressing issue of tariffs impacting the retail industry. Responding to listener inquiries, they introduce a "tariff hotline" concept, aiming to provide actionable advice to retailers navigating the complexities of tariffs.

Guest Experts

To shed light on the subject, hosts welcome two first-time guests from SPS Commerce:

• Emily Kurin: Director of Product Management
• Rob Shufflebein: Senior Supply Chain Strategist

Speaker Backgrounds

• Rob Shufflebein [02:19]: With 17 years in global supply chain and solutions, Rob specializes in advising retailers, distributors, grocers, and manufacturers on trends and best practices.

• Emily Kurin [03:06]: Emily has been with SPS Commerce for 15 years, transitioning from customer support roles to sales engineering, and eventually leading the fulfillment solutions within the product organization.

Listener Questions & Expert Insights

1. Managing Tariffs for Startups

Listener Question: How should a startup participating in a retailer's local brand pilot prepare for the impact of tariffs on production and pricing?

Emily Kurin [06:30]:

"Be upfront and transparent... let your retailer know how these tariffs are potentially going to be impacting not only the cost... but maybe any of the production as well." (06:30)

Rob Shufflebein [08:48]:

"I'm going to have to pass them through to the retailer and to the customer... make those transparent, objective and data-driven decisions." (08:48)

Key Takeaways:

• Transparency: Honest communication with retailers about tariff impacts on costs and production.
• Data-Driven Decisions: Utilize accurate data to navigate pricing and delivery challenges.
• Price Adjustments: Thoughtful pricing strategies to mitigate tariff-related costs without alienating consumers.

2. Diversifying the Supply Chain

Anne Mazinga [10:53]:

"What about... diversifying your supply chain? What should I be thinking about as a supplier, small or large?" (10:53)

Emily Kurin [11:08]:

"Look at all of those points in your supply chain. Are you putting all your eggs in one basket... opportunity to diversify your suppliers?" (11:08)

Rob Shufflebein [14:14]:

"Understand your total landed cost... assess your supply chain’s diversity and associated costs." (14:14)

Key Takeaways:

• Risk Assessment: Identify vulnerabilities in the supply chain.
• Supplier Diversification: Spread sourcing across multiple suppliers and regions to mitigate risks.
• Total Landed Cost Analysis: Evaluate all costs associated with bringing products to market, including tariffs, to inform diversification strategies.

3. Tracking and Managing Tariff Data

Anne Mazinga [21:31]:

"How are you managing that on a massive scale when your SKUs have different tariff impacts?" (21:31)

Rob Shufflebein [22:14]:

"Ensure you have a standard operating procedure for managing HTS codes... track everything correctly from the source." (22:14)

Emily Kurin [23:33]:

"If your item data is accessible and standardized, passing through tariff information becomes easier." (23:33)

Key Takeaways:

• Standard Operating Procedures (SOPs): Implement consistent methods for managing Harmonized Tariff Schedule (HTS) codes.
• Centralized Data Management: Utilize systems that centralize SKU data for easier tariff tracking.
• Regular Updates: Stay informed with the latest tariff changes via resources like the US CBP website.

4. Ensuring Data Accuracy

Chris Walton [27:40]:

"How do I audit the data to make sure it's actually right?" (27:40)

Rob Shufflebein [27:40]:

"Apply the 5S methodology: Sort, Shine, Set in order, Standardize, and Sustain to your data." (27:40)

Key Takeaways:

• 5S Methodology: Adopt a systematic approach to organize and maintain accurate data.
• Automated Workflows: Leverage technology and AI to manage data accuracy, focusing human oversight on exceptions.
• Source Integrity: Ensure that data accuracy begins at the source, preventing errors from propagating through the supply chain.

5. Addressing SKU-Level Tariff Impacts

Rob Shufflebein [30:10]:

"Understand your true tariff costs by assessing the accuracy and granularity of your invoices." (30:10)

Emily Kurin [32:06]:

"Suppliers should know their exposure and take small incremental steps... focus on pricing strategies." (32:06)

Key Takeaways:

• Invoice Transparency: Break down invoices to clearly identify tariff-related costs separate from other fees.
• Strategic Pricing: Adjust prices thoughtfully, possibly through promotions or selective SKU adjustments, to maintain margins without widespread price hikes.
• Collaborative Strategies: Work closely with retail partners to share the burden of tariff costs through mutual planning and co-development.

Final Advice from Experts

For Retailers:

Rob Shufflebein [30:10]:

"Assessing the accuracy and the granularity of your invoices... avoid a costly mistake and corrective action later on." (30:10)

Key Advice:

• Invoice Verification: Ensure invoices accurately reflect tariff costs to prevent financial discrepancies.
• Proactive Communication: Engage with suppliers early to clarify tariff impacts and collaborate on solutions.

For Suppliers:

Emily Kurin [32:06]:

"Start by knowing your exposure and take small incremental steps... focus on pricing strategies." (32:06)

Key Advice:

• Understand Exposure: Clearly identify how tariffs affect your product costs and overall business.
• Incremental Adjustments: Implement minor pricing changes or promotions to manage tariff impacts without drastic shifts.
• Data Transparency: Maintain open lines of communication with retailers, backed by accurate data to support pricing and production decisions.

Conclusion

Chris Walton and Anne Mazinga wrap up the episode by reiterating the importance of proactive data management, transparent communication, and strategic planning in navigating the challenges posed by tariffs. They encourage listeners to reach out to the guest experts for further assistance and emphasize the collaborative effort required between retailers and suppliers to mitigate tariff impacts effectively.

Contact Information:

• Emily Kurin: LinkedIn | Email: E.J.kurin@spscommerce.com
• Rob Shufflebein: LinkedIn | Email: R.J.shufflebein@spscommerce.com

Thank you for tuning into Omni Talk Retail. Stay informed and prepared to navigate the evolving landscape of the retail industry.