Navigating Tariff Turbulence: How Leveraging a GPO Helps Reduce the Impact

Are you struggling to navigate the complexities of new tariffs and their effect on your supply chain?

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Market Turbulence & Volatility

The recent wave of tariff announcements has sent ripples of uncertainty throughout the industrial and manufacturing sectors, leaving many companies grappling with volatile material costs (that they have to pass along to their customer) and disrupted supply chains. This instability makes both short- and long-term purchasing strategies incredibly challenging. Predicting the true cost of goods and securing reliable sources has become a complex and often frustrating endeavor.

In unpredictable environments like this, the need for strategic purchasing and cost management has never been more critical. This is where joining a group purchasing organization (GPO) can offer a significant advantage.

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How a GPO Can Lessen the Impact

PA’s GPO+ model drives deeper value beyond what the traditional GPO offers, with leverage, analytics, and resources in place to help members during turbulent economic times.

We’ve identified four key areas where we can support to lesson the impact of tariffs:

Stable Supplier Contracts: In these uncertain times, where conditions change daily, our strong relationships and purchasing leverage with mature distributors with strong balance sheets offer a substantial advantage in mitigating supply impacts.

Visibility of Impact: We are working closely with our distributors to provide members with as much lead time as possible before any cost adjustments related to tariffs take effect.

Cost Mitigation Opportunities: The best way to mitigate costs is to buy less, manage inventories better, consolidate SKUs where you can, find lower cost alternates with same form, fit and function. PA has tools and programs to help with master data inventory management and SKU optimization that can be done at a category or plant level.

Sourcing of OEM & CapEx: For SKUs and categories (including Capex, OEM, and Services) that are outside the scope of our strategic GPO suppliers, the Amicus Spend Management team is available to help you find products and services at the lowest possible cost by leveraging their extensive network of domestic and global suppliers.

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Additional Tariff Impact Resources

PA has launched its Tariff Impact Series, in addition to the strategies above, to inform members of changes, updates, and new developments, and to share perspectives from our partners.

The list below will be updated as resources are added:

[On-Demand Webinar] – Taking Action in the Face of Uncertainty

[On-Demand Webinar] – Tariff Implications for Procurement Organizations

[Webinar Registration] – The Impacts of Tariffs on US Energy Costs
Tuesday, June 10th – 11:00am ET

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Your Strategic Advantage in a Changing Landscape

Navigating the turbulent waters of new tariffs and their impact on your supply chain doesn’t have to be a solitary struggle. By understanding the challenges and leveraging the strategic advantages offered by a Group Purchasing Organization like PA, you can gain stability, visibility, and tangible cost mitigation opportunities. From securing stable supplier contracts to accessing expert sourcing for specialized needs, PA is committed to equipping its members with the tools and knowledge necessary to not only weather the current storm but to emerge stronger and more resilient.

We encourage you to explore the resources highlighted in our Tariff Impact Series and join our upcoming webinars to gain further insights and actionable strategies for your procurement organization. Take action today to safeguard your supply chain and build a more secure future.