'Uniquely Positioned': How Small Business Owners Can Successfully Navigate the Tariffs Global supply chain expert Kerim Kfuri offers smart strategies for dealing with tariff uncertainty.
By Dan Bova
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As tariffs and their effects on the supply chain begin to take shape, Kerim Kfuri, the president and CEO of the Atlas Network, a global supply chain solutions company, has his eyes on the headlines. "We produce a more efficient and effective outcome for businesses through best practices and protocols that focus on transparency and visibility — the right suppliers, eyes and ears on the ground, and third-party attestation," Kfuri tells BIZ Experiences.
Here, Kfuri shared some insights BIZ Experiencess can use to protect their businesses and even thrive during uncertain times. (This interview has been edited for length and clarity.)
Tariffs seem to dominate and then disappear from the headlines. How does it impact small business owners now that the initial media frenzy has died down?
Just because the tariffs have begun to leave the headlines a bit does not mean that their impacts are not wide-ranging. Tariffs have material impacts on businesses, especially those that operate on very thin margins, like the commodity space. Whereas in other industries, such as the luxury goods market, where the margins are much higher, the impacts of the tariffs may not be as readily felt or may be able to be passed along to other businesses and consumers.
Related: How Trump's Tariffs Will Reshape Startups and Venture Capital
What are you hearing from SMBs about their impact?
We operate with a significant amount of SMB clientele, and so far, they have not stated that it is as bad as they would have thought. This is because we find that small businesses are uniquely positioned to pivot and adapt more quickly. It's always harder to turn a much bigger ship. In the realm of global supply chain, where the only consistency is inconsistency, you need to look at those rainy day situations before they actually come about. Many small and mid-sized businesses were thinking about the tariffs months before they even occurred, and started rejiggering and coming up with contingency plans on how to manage excessive costs.
What are some smart steps BIZ Experiencess can take to mitigate the negative effects?
There are things you can do to help mitigate negative effects and actually end up with opportunities in the face of chaos and challenges. This includes:
- Negotiate who absorbs these tariffs, or make it a shared effort between suppliers and the brand and, ultimately, the consumers, so the cost impacts are not as widely felt.
- Slow down the payments of tariffs by putting goods in U.S. bonded warehouses or free trade zones and removing the products from those locations piecemeal as needed.
- Look at operational enhancements, like the terms and conditions with suppliers, and being able to extend those terms and conditions to help assist with cash flow, especially if upfront tariffs are required when goods enter through the ports. By making longer payment terms, you can offset those upfront cash constraints.
- Look at using new materials for your products that may reduce the cost structure and therefore improve profitability. You can also raise the pricing of your products while revealing hidden benefits that haven't been explained or showcased to your consumers.
- Find alternative supply chains. Look at non-tariff countries or look for other suppliers that may be more favorable as it relates to the current conditions at play.
Related: Historic Perspectives on Tariff Policies and Modern Impacts
Are there any big misconceptions about the supply chain?
I think the biggest misconception about the supply chain is that it does not impact us all. It impacts every single facet of our lives, from the products we use to the stock markets to the industries that we enjoy, such as the entertainment industry. No matter what area you are looking at, there will always be a tie to a supply chain that makes that industry successful and therefore allows the global economy to move forward.