Surviving the Tariff Storm: Why Your ERP Might Need an Upgrade
- Roger Pujol, CPIM, CSCP
- Jul 18
- 2 min read
Updated: Jul 27
Tariff uncertainty isn’t just a headache for global procurement teams—it’s a strategic risk that touches every corner of a business. With rising trade tensions and shifting policies impacting cost structures, supply chains, and compliance obligations, many manufacturers and distributors are wondering: Is now the right time to upgrade their ERP?
The Tariff Tipping Point
As 2025 unfolds, tariff changes—especially those targeting key raw materials and finished goods—are starting to bite harder than expected. Businesses with inflexible legacy ERP systems are discovering that:
Landed cost tracking is limited, making it nearly impossible to understand the true cost of inventory.
Dynamic financial forecasting is missing, which prevents effective margin management and risk mitigation.
Supplier and route modeling are not supported, so contingency planning for alternate sources is at best a guess.
In an environment where import costs can swing 10–40% overnight, this isn’t just inefficient—it’s dangerous.
What Modern ERP Brings to the Table
Forward-thinking companies are responding by upgrading to modern ERP platforms that accurately handle tariff volatility. Key capabilities include:
Integrated HTS/HS code libraries for streamlined compliance and duty estimation.
Scenario modeling tools that simulate tariff changes across geographies and suppliers.
Real-time landed cost calculations that incorporate customs fees, duties, freight, and exchange rates.
Regulatory reporting dashboards that track exposure and support audits.
If your system can't reconcile tariff-driven price increases with your revenue forecasts or supplier contracts, it's not just outdated—it’s putting your business at risk.
Tariffs as a Catalyst for Broader Transformation
Interestingly, upgrading ERP in response to tariffs often uncovers deeper opportunities. Many companies discover:
Improved inventory turns, thanks to better visibility into margin erosion.
Tighter procurement strategies, through automated supplier scoring and cost tracking.
Smarter carbon accounting, since tariffs now directly affect emissions reporting for import-heavy operations.
Tariffs may be the spark, but the real win is enterprise-wide agility.
What’s Next?
Whether you're operating on Excel, QuickBooks, an aging tier-2 solution, or a patchworked tech stack, the real question is: can your ERP flex with the global market?
If not, upgrading isn’t just a tech decision—it’s a strategic one.
Ready to Tame Tariff Turbulence?
If tariff shifts are straining your margins or throwing off your forecasts, your ERP might be working against you. Don't wait for the next compliance headache or supply chain disruption.
If you would like to discuss your situation, please schedule a free, no-obligation consultation with us by using the link below.
Roger Pujol, CPIM, CSCP, the founder of Champion Business Solutions, LLC, is an ERP consultant & advisor specializing in ERP Business software for the manufacturing and distribution industries. He shares insights and experiences on assisting small and medium-sized businesses (SMBs) to enhance their operations.
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