Altana’s Post

Transcript

Trade policy is increasingly volatile. It is crucial to understand your exposure to tariff changes. We'll demonstrate how Altana assists in visualizing and optimizing your supply chain amidst these challenges. In our value chain view, you can observe your network of suppliers, where each node represents a facility and the connections illustrate different product flows with detailed information about these flows. This provides a solid foundation for understanding tariff impacts, but it requires a more profound analysis. This is where our new tariff scenario modeling dashboard comes into play. This dashboard transforms the way you comprehend and manage tariff fluctuations across your entire supply chain. What sets this tool apart is that it doesn't merely identify whether you're goods pass through potentially impacted trade lanes. It calculates the actual share of your end products cost that could be affected by tariff changes. Let's illustrate this with a real world example. Suppose a 25% tariff is imposed on all goods moving from Mexico to the United States. When the scenario is input, our dashboard performs a unique function. It scrutinizes the entire supply network and precisely calculates what portion of the final product cost flows through this trade lane. For instance, if a customer spends $411 million annually on a finished product and 1% of its components go from Mexico to the United States will show exactly how this tariff would affect your bottom line. The dashboard breaks this down in three critical ways. Firstly by overall network showing the percentage of your total businesses multi tier exposure to the impacted trade lane. Secondly, by supplier relationship ranking, which supplier partnerships carry the highest tariff exposure? Lastly, by individual shipments drilling down to the specific transactions and tariff codes impacted. This detailed analysis enables strategic decision making. For instance, instead of just knowing you have exposure to Mexican suppliers, you can see that perhaps 6% of your cost base for Supplier A flows from Mexico to the United States within the multi tiered network, while only 2.5% of supplier bees does. This information can help you prioritize where to focus your supply chain diversification efforts. The system ranks all relationships by tariff code impact, allowing you to see which specific relationships are expected to create the highest cost burden. However, our aim is not just to identify the problem, but also to help you address it. For instance, if we've identified a high risk supplier relationship involving HS code 740200, with just a few clicks, we can launch into our Navigator dashboard to find alternative suppliers outside of the affected trade lane. We can key in the tariff code directly and view exporting and importing entities globally that transact with this code. For example, let's show all instances where entities in the United States are the importers and entities outside Mexico are the exporters. This way we've already started finding alternative suppliers outside of the affected trade lane. The Navigator displays qualified manufacturers globally, filtered by company type, trade volume, and risk factors, providing immediate options for diversifying your supply base. This is not just about risk identification, but also about strategic cost management and supply chain optimization. By understanding the precise share of costs at risk in each scenario and having immediate access to alternative supplier sourcing options, you can make data-driven decisions about where to invest in supply chain diversification and how to protect your margins in an increasingly complex trade environment. Our probabilistic modeling ensures you get these insights even without perfect visibility into every tier of your supply chain, giving you a strategic advantage in navigating global trade uncertainties.