^{Source: Women's Agenda}

The Rise of AI in Supply Chain Management
In today’s volatile trade environment, where tariffs can change at a moment’s notice, companies need to understand their entire supply chain—down to the very last tier of suppliers. Artificial Intelligence (AI) is playing a crucial role in helping businesses not only cope with tariff changes but also optimize costs, assess risks, and map out more resilient and cost-effective supply chains.

As global trade wars and tariff threats continue to loom, businesses must adapt quickly, and AI has emerged as a key solution. Companies are now using AI to gain visibility into every level of their supply chain, providing insights that were once difficult to obtain.

The Importance of a Complete Supply Chain Picture
Tariff uncertainty—what goods will be taxed and by how much—has created a major headache for businesses. CEOs and their teams are scrambling to make informed decisions in real-time, and traditional methods of tracking supply chains just aren't cutting it anymore. This has sparked the need for AI-powered solutions that can track global supply chains from top to bottom, understanding even the indirect suppliers and hidden cost factors.

For example, take the manufacturing of a simple washing machine. A company can provide an AI system with a bill of materials, detailing every part used in the product and its suppliers. AI can then map out all the tiers involved in producing that washing machine, including suppliers that the manufacturer themselves may have never even heard of. With this detailed map, businesses can better understand how tariffs will affect their costs and what adjustments they need to make to avoid price hikes or supply chain disruptions.

The AI Advantage: Real-Time, Dynamic Supply Chain Mapping
AI systems like the one developed by Altana are making supply chain management more responsive than ever. Evan Smith, the CEO and co-founder of Altana, explains that AI allows companies to see beyond their direct suppliers and anticipate how tariffs will impact their products and costs.

"Four years ago, it would have taken us six months to map out a large enterprise’s supply chain," Smith recalls. "Today, we can do it all in a single day." This breakthrough is possible thanks to AI’s ability to analyze vast amounts of data from multiple sources, including logistics companies, banks, insurers, and retailers, among others.

By integrating data from these private sources, AI systems can create a dynamic, real-time map of global supply chains. Altana’s system, for instance, provides businesses with an in-depth view of how a shift in the supply chain—whether moving production to a new region or re-shoring manufacturing—would affect costs and tariff exposure.

Navigating Tariffs and Supply Chain Risks with AI
With trade wars ongoing and tariffs fluctuating unpredictably, companies need to continuously assess their risk exposure. According to Smith, companies are now regularly asking questions like, "What happens if tariffs on Chinese goods increase? Where is our supply chain at risk of disruption due to dependency on specific countries?"

Through AI-powered platforms, companies can answer these questions faster and more accurately than ever before. For example, if a company sources parts from China and is facing a potential 25% tariff, they can quickly see how much the new tariff will affect their bottom line. Additionally, AI tools can suggest ways to mitigate those costs by shifting production to lower-cost regions or reworking supply chains.

The Era of Blind Outsourcing is Over
In the past, companies often outsourced manufacturing to lower-cost countries without fully understanding the risks involved. But as tariffs and geopolitical tensions have increased, the “blind outsourcing” model is no longer viable.

AI is helping companies move beyond simple cost-cutting decisions by allowing them to see the true cost and impact of every decision along the supply chain. Smith emphasizes, "Companies must have visibility into their multi-tier supply chains, and it has to be dynamic to stay ahead of the next change."

With AI, businesses can track and adjust their supply chains in real-time, making it easier to react to unforeseen tariff hikes or other disruptions. This capability has become crucial in an era where geopolitical tensions and trade policies can shift rapidly, leaving companies scrambling to adapt.

The Bottom Line: AI as a Game-Changer in Supply Chain Management
As tariffs continue to disrupt global markets, the companies that succeed will be those who can make data-driven decisions quickly and effectively. AI provides businesses with the tools they need to stay ahead, offering real-time insights into supply chains that were previously invisible. By leveraging AI, companies can not only navigate the uncertainty of tariffs but also build more efficient, resilient supply chains that are better equipped to weather future economic storms.

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