This year is especially vital for business owners to prepare for supply chain interruptions. The reason is a large number of potential and already implemented tariffs that might impact logistics and expenses.

Proprietors should have a Plan B, C and D for keeping business flowing should it become difficult to obtain anything from baking ingredients and automobile parts to retail and consumer goods.

Failure to plan ahead could result in your business taking a huge hit in profits, passing expenses along to angry customers or taking a metaphorical knockout blow that literally closes the door for good.

A business owner should consider multiple vendors as part of a strategic plan prior to opening their establishment. Companies that rely on international trade partners could be especially vulnerable to obstacles, whether they are sudden or anticipated.

For instance, a retailer whose inventory includes a wide range of products imported from China, such as clothing, toys, electronics and shoes, should not put their eggs in one basket/country. While these items are not currently affected by tariffs, others are and the overall flow of all goods could get stuck in a significant bottleneck.

You might consider researching other countries that could satisfy your needs. For example, business owners whose companies specialize in electronics and footwear might look to Vietnam, while India could be helpful for obtaining automotive parts. Those in the textile industry may do well exploring options in the Philippines and Indonesia.

In addition, countries closer to home, such as Mexico and Latin America, could possibly deliver items faster once production chain issues are resolved. Even if these scenarios are far from ideal, they are a favorable alternative to receiving merchandise and raw materials in drips and drabs, if at all.

One way to prepare for expected slowdowns is stocking up on items. This approach comes with possible risks and rewards. A business that orders an abundant inventory could position itself for a handsome profit as the only game in town when supply fails to satiate demand.

However, establishments should carefully examine marketplace trends. Purchasing popular items now could backfire if they are replaced by new, hot items of the moment and viewed as past their prime once shipping lanes open back up.  Prior to buying in bulk, businesses should contemplate whether their rainy-day funds can cover substantial overstock and lost revenue.

While communicating regularly with customers might not ease their frustration and anxiety, staying in constant contact is another way to stay the course. Investing in supply chain software applications may also be a benefit in these situations. Certain programs allow you to track shipments in real time.

The ability to give your clients up-to-the-minute information could further maintain customers’ trust. They would see your business as using every asset at its disposal to resolve the issues rather than giving the negative perception of throwing your hands up in the air.

There are myriad ways to prepare for and counteract the negative impacts of tariffs and supply chain disruptions. This article just scratches the surface. Be sure to explore ideas from many sources to keep your business afloat during, and perhaps profit from, adverse supply chain scenarios.