The global trade landscape is shifting fast—with rising tariffs, changing regulations, and growing geopolitical risk. For fast-growing brands, these changes aren’t just frustrating—they’re expensive. But in every challenge lies opportunity.
At Izba, we help brands rethink their sourcing, logistics, and operations to build smarter, more resilient supply chains. Here are the most practical and often-overlooked ways to cut costs and protect margins—without sacrificing product quality or customer experience.
🔧 Sourcing & Manufacturing
- Review and Renegotiate Contracts
Start by revisiting contracts with your co-manufacturers and suppliers. Use your existing relationship and volume as leverage to negotiate better payment terms (e.g., net 90) or pricing tiers. - Analyze Your BOMs (Bill of Materials)
Go line-by-line through your BOMs to flag expensive components, packaging, or specialty finishes. Ask: can we switch to a local or lower-cost alternative—especially for non-core elements? - Diversify Country of Origin
With tariffs on the rise, don’t just look at the final assembly location—assess where each component originates. You may be able to reduce duties by relocating sourcing or production to lower-tariff countries. - Optimize HTS Codes (a.k.a. Tariff Engineering)
The right HTS code can make a big difference in duty rates. Review your classifications (with legal counsel or a trade expert) to ensure you’re using the most favorable and accurate codes. - Use Bonded or Free Trade Zones
Consider moving inventory into bonded warehouses or free trade zones to defer taxes until goods enter their final market. This gives you more flexibility and may reduce duties altogether. - Build in Redundancy
Dual sourcing may feel complex upfront, but it builds long-term leverage and flexibility. Having more than one qualified manufacturer can keep costs competitive and avoid bottlenecks.
📦 Logistics, Fulfillment & Inventory
- Renegotiate with Your Fulfillment Partners
Have your volumes or shipping mix changed? It might be time to revisit your 3PL contract. Vendors often offer better pricing when you come to the table with updated data and a strong relationship. - Review Your Rate Cards
Rate creep is real. Audit your fulfillment and shipping rate cards—then benchmark against competitors. You might be overpaying and not even know it. - Watch Out for Aging Inventory Costs
Warehousing fees add up—especially if you’re holding excess inventory to hedge against tariffs. Don’t trade one cost for another. Monitor aging stock and plan exits strategically. - Audit Returns and Unsold Inventory
Returns pile up quickly and quietly. By accurately tracking what’s coming back and where it’s sitting, you can avoid unnecessary re-orders and better manage storage fees. - Reassess Parcel and Shipping Strategy
Explore alternative carriers, consolidate shipments, and optimize packaging sizes. Small tweaks can yield big savings. - Consider International Fulfillment
Fulfilling from regional nodes (e.g., EU, Canada, Asia) can reduce last-mile costs, speed up delivery, and lower or defer tariffs. - Split Inventory by Region
Holding inventory closer to your end customers—even across multiple countries—can reduce duties and transit time. While more complex operationally, it often pays off for global brands.
💰 Financial Strategy
- Model Tariff Impact on Cash Flow
Don’t fly blind—build financial models to forecast tariff costs across your P&L. This helps you make informed trade-offs and avoid knee-jerk reactions. - Recover Chargebacks
Retailer and Amazon chargebacks are costly—but often disputable. Partner with specialists to recover funds or build internal processes to catch and appeal them. - Improve Cash Flow via Terms
Improved payment terms upstream and downstream—from suppliers to retailers—can make a major difference in working capital and reduce the need for outside financing.
🧠 People & Process
- Invest in Expert Help
Whether it’s HTS code classification or global logistics strategy, expert support can uncover cost savings you might miss in-house. The right consultant often pays for themselves in a single engagement. - Get Better Data
Good decisions start with good data. Ensure your team has accurate, up-to-date info on inventory, BOMs, landed costs, and product origins to act with confidence. - Align Cross-Functional Teams
Saving money in today’s trade environment isn’t just a supply chain issue—it’s a company-wide effort. Make sure product, finance, operations, and sourcing are all aligned on cost and risk priorities.
🧪 Product Development
- Design with Cost in Mind
Tariff considerations should happen before products are finalized. Even small tweaks—like switching a zipper or changing materials—can shift your HTS code or open up new sourcing options.
Final Thoughts
Cost-saving in a volatile trade landscape doesn’t have to mean cutting corners. With the right strategies in place, you can build a more resilient, responsive, and profitable operation.
Need help modeling the impact of tariffs or reevaluating your supply chain strategy?
Reach out to the Izba team—we’d love to help you navigate what’s next.
