From Tariffs to Tight Margins:
​​​​​​​Why Inventory Visibility Matters Most

Retailers and retail suppliers grappling with new U.S. tariffs are looking for the best ways to manage inventory, plan for demand and protect their customers from rising costs.


Some sped up imports before various tariff deadlines. Others imported only crucial items while waiting for tariff rates to settle. Now, many of the 7,500 retail customers we serve are trying to absorb or offset tariffs through operational efficiencies.


Item-level visibility and centralized purchase-order management are two key technologies for keeping inventory tight. In fact, this year we’re on track to double the volume we’re handling through our item-level purchase order tools.


Many retailers have little visibility into their inbound supply chains because they purchase goods from their suppliers with the storage and transportation costs included. As the receiver, you may only have visibility to shipments when they’re on the way. Knowing where every item is located in your supply chain—even before it’s transported—avoids over-ordering where inventory isn’t needed, enables redistribution of existing inventory and allows for more precise ordering when you do need more inventory.


Centralizing purchase orders across your manufacturers, suppliers and distributors also opens up possibilities for freight consolidation. We just conducted an analysis for a food company whose trucks run only 60% full on average. If one distribution center needs two pallets of broccoli and three pallets of yogurt, it’s not like cans of soup that can wait until there's enough to fill a truck. Instead, trucks make up to seven pickups for their array of products. At only 60% full, that’s a lot of wasted miles. By bringing all their products directly into one of our nearby retail consolidation centers, we can more efficiently aggregate shipments with our tech and achieve a 23% increase in truck utilization, a 31% reduction in deliveries and an 11% decrease in cost.

Noah Hoffman

VP for retail logistics
C.H. Robinson