Lakshmi Varanasi,Polly Thompson
4 min read
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Companies are turning to consulting firms for help navigating Trump's tariffs.
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Firms are advising them to audit contracts, adjust pricing, and manage costs proactively.
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"Companies have more control than they realize," Shannon Copeland, CEO of SIB consulting, told BI.
If you are confused by what President Donald Trump's tariffs mean for you, you are not alone.
As businesses confront a new era of American protectionism, many are turning to consulting firms for strategies to adapt to the rapidly changing regulatory landscape.
Business Insider spoke to the leaders of some of the world's top consulting firms to find out what advice they give their clients.
Some businesses' first instinct is to pass the cost of tariffs onto the consumer. In March, the Association for Supply Chain Management surveyed 400 supply chain professionals and found that 65% of companies intended to do just that.
Several consultants told BI, however, that blanket price increases aren't always the best move.
Consumers are facing higher prices across the board, so unless the product is a basic necessity, trying to shift the cost will generally result in reduced demand, KPMG's national operations lead, Paul Hencoski, told BI. Ultimately, a business would be forced to cut prices to move stock, he said.
"Companies have more control than they realize," Shannon Copeland, CEO of SIB consulting told BI. As a cost-cutting specialist, SIB aims to help clients avoid overpaying in the areas they can control, so that when prices rise, they're not starting from a place of inefficiency, Copeland said.
"The businesses that fare best are the ones that don't leave their spend on autopilot," he said. "Get proactive and treat tariff exposure like any other enterprise risk."
He advised companies to audit vendor contracts, analyze rate structures, and assess recurring spend for hidden vulnerabilities.
With tariffs restricting supply chain maneuverability, the rapidly emerging topic companies need to be thinking about is "go to market," Boston Consulting Group Global Chairman Rich Lesser told BI.
He said they should be asking questions like: How do you understand your economics versus your competitors? How do you monitor what's happening in real time on a store shelf or in an industrial supply chain? How do you think about pricing for your business?
McKinsey Senior Partner Cindy Levy said some companies may benefit from revisiting prices more often. "Instead of once a year, they may adjust every few months. It's really about managing costs across the value chain, especially when raising prices isn't an option."
