How APS can Help Manufacturers in a Tariff-Laden Landscape Unlocking the Power of APS: Real-Time Visibility and Demand Forecasting

Agility is becoming a key buzzword among manufacturers, especially as the threat and implementation of tariffs may potentially change America’s business landscape. As Liberation Day hits this week, and tariffs do/do not happen, manufacturers (either way) need a game plan to navigate this landscape successfully, and Advanced, Planning and Scheduling (APS) software will become a key player in that plan.  Why? Let’s revisit the buzzword “agility.”

Business agility refers to an organization’s ability to quickly adapt to market changes, customer demands, and emerging opportunities while maintaining operational efficiency and innovation. It allows businesses to respond proactively to disruptions, whether from economic shifts, technological advancements, or competitive pressures. There’s no doubt demand and market conditions will fluctuate even more so as President Trump implements new tariffs depending on the country he’s negotiating with.  And as “buy American” and “manufacture in America” become more and more a mantra, manufacturers will need to revisit almost all their supply chains and distribution centers now over the next few months and years.  Two core components of APS,  forecasting and real-time visibility, align with this new mantra and should be a part of every manufacturer’s game plan.

Demand Forecasting:
Why is it that when the cost of eggs increases, so does everyone’s desire for omelets? Or when bird flu hits, everyone’s desire for omelets switches to Cheerios?  Add Canadian tariffs to the mix, and forecasting can really become scrambled. For “non-dairy” manufacturers, these same types of manufacturing issues plague forecasting. It’s the not knowing (or technology’s inability to adapt to ever-changing supply and demand) that causes manufacturing headaches and setbacks. Unlike traditional forecasting methods, APS continuously consumes updated demand predictions based on real-time market conditions, helping businesses respond quickly to shifts in customer behavior.

APS’s demand forecasting, with advanced algorithms and predictive data analysis can mitigate a consistently fluctuating landscape to enhance ultimate plans and schedules. It’s all about maintaining balance: APS not only uses historical data and market trends, to accurately forecast demand, but it also continuously adjusts production schedules based on real-time demand fluctuations, supply availability, and resource constraints. Both capabilities help businesses adjust and prevent stockouts or overproduction as well as ensure smooth operations.

Real-Time Visibility:
This week, what if Trump puts a 25% tariff on the supplies a manufacturer needs from Mexico? And what if that 25% reduces to 10% the following week? Ultimately, businesses can use APS to run “what-if” scenarios simulating different demand fluctuations (e.g., supply chain disruptions, new product launches) to plan for contingencies. With real-time data analysis, APS provides insights into the financial impact of tariffs and suggests cost-effective adjustments in procurement, production, and logistics. For example, APS can help businesses shift production to domestic or lower-tariff countries, reducing reliance on high-tariff imports.  And in a “made in America” society, optics are stellar for any business that adopts a localized production strategy. APS also enables JIT strategies, reducing the need for bulk imports that may be subject to higher tariffs, thus lowering carrying costs.

In-house, APS tracks and uses real-time data on workforce, equipment, and material availability, which allows manufacturers to optimize resource allocation, minimize idle time and reduce operational costs. Overall, APS integrates with ERP, CRM, and supply chain management systems to gather real-time sales, order, and inventory data, ensuring forecasts are based on the latest information to empower sales and operational training.

No matter which comes first: the chicken, the egg, the omelet, bird flu, or the tariff, your business needs APS to provide you with the power to say, “It doesn’t matter.” APS provides real-time insights into supply and demand conditions, allowing managers to make informed decisions to mitigate disruptions before they escalate…or when they de-escalate. Agile businesses, with the assistant of APS software, can ultimately profit in any environment, predictable or not. And, at the same time, give consumers exactly what they want, when they want it, and at a price they can easily digest.