How process intelligence helps supply chains overcome volatile tariff challenges

Since taking office in January 2025, President Trump has introduced wide-ranging tariffs on goods imported into the US. Other governments’ responses have varied, from China imposing tariffs on US imports to more than 75 countries offering to negotiate.

This is having major implications on global trade – creating a truly unpredictable business and economics landscape that continues to reverberate around the world.

The tariffs have put immense pressure on supply chains. Modern businesses often rely on diverse supply chains that span multiple geographies, importing and exporting goods on a regular basis.

As businesses continue to manage and reevaluate their strategies, process intelligence can help tackle some of the biggest supply chain challenges created by the volatile tariff situation.

Process intelligence enables organizations to transform logistics operations and manage inventory more effectively – factors that can have direct impact on supply chain management. By gaining a clearer, real-time and data-driven understanding of their supply chain processes, businesses can overcome some of the challenges posed by the uncertain tariff landscape and mitigate the cost of higher tariffs.

Benefits of process intelligence

Process intelligence leverages predictive and generative artificial intelligence (AI) in three key steps to help businesses understand and improve processes. These are:

1. Process discovery
2. Process monitoring
3. Process enhancement

The benefits of process intelligence are wide-ranging. Process intelligence reveals how processes actually work in detail – highlighting the many variants, anomalies and bottlenecks that occur. It can also predict what’s next – delivering a clear return on investment by addressing inefficiencies and unlocking new value.

Transforming logistics operations

Logistics operations are the backbone of supply chain management, bridging the connection between manufacturers, suppliers and customers. Logistics involves various processes that focus on the movement and storage of raw materials and goods.

The impact of logistics on the success of a supply chain is both fundamental and diverse – determining its overall efficiency, competitiveness and customer satisfaction.

Amid the ongoing tariff saga, logistics operations take on even greater significance at a time when businesses must evaluate if, when and how they should import and/or export goods. 
Process intelligence’s qualities are primed to support and enhance logistics operations. For example, logistics professionals and providers can anticipate potential challenges and take preventive action, shifting the mindset of operations teams to proactive instead of reactive. Likewise, by predicting outcomes based on real-time data, businesses can make more informed decisions, reducing costly errors and improving service levels.

Process intelligence also enables organizations to automate data analysis and reporting, freeing up valuable time to focus on strategic initiatives rather than manual tasks. With process intelligence, logistics professionals can leverage real-time, granular insights to make data-driven decisions. 

Enhancing inventory management

Inventory management is another key piece of the supply chain puzzle. When tariffs skyrocket the costs of goods sold, knowing the precise inventory balances and eliminating every potential loss could be the difference maker in survival. By effectively and efficiently managing inventory levels, businesses are better positioned to know whether they need to increase or reduce the amount of goods they have. 

Inventory loss in a supply chain refers to any reduction in the value of raw materials and goods due to factors like damage, theft, spoilage or errors in record-keeping. This loss can be significant, impacting profitability and operational efficiency. 

Inventory loss can have dire consequences on a company’s manufacturing output and business performance. Potential issues include delayed production runs. If the necessary parts/raw materials are not in the right place to complete the planned production schedule, delays are inevitable. This can have damaging impacts on a company’s supply chain. One clear knock on effect is to customer services and adherence to SLAs, especially important if there are penalty clauses in contracts.

Inventory loss is a symptom of suboptimal processes. The root causes can lie in inaccurate forecasting, supplier underperformance, customs hold ups and other global logistics issues.
Process Intelligence is the first step into understanding the causes of inventory loss at an individual organization and preventing them occurring in the future. Once you are aware of the root causes, you can treat them – not the symptoms. 

The potential savings and benefits through understanding this and making the necessary changes are significant, but this is not a one-and-done task. Businesses need to continually monitor processes and adapt based on data-driven decision-making. This is why process intelligence is emerging as such an in-demand tool.

The organizations that adopt process intelligence are in a stronger position to manage and enhance their supply chain processes, along with securing cost savings – thus gaining an advantage in tackling the diverse challenges arising from the unpredictable tariff situation.