“Clearly, tariffs will raise costs for imported and domestic raw materials (steel, aluminum, plastic resins, wood, paper, etc.). We should all be prepared when suppliers cite these cost increases to justify higher prices for the products they sell us. Preparation includes detecting supplier “Margin Creep” (Silent Slopes) – the common practice of raising prices more than required to cover their cost increases.” – Rod Sherkin, ProPurchaser.com Inc.
According to research, the 2024 U.S. Tariff Plan will likely “accelerate and amplify silent slopes in direct material pricing, creating both challenges and opportunities for procurement professionals.”
By proactively monitoring the associated “trends” and adapting the appropriate negotiating strategies, “organizations can mitigate risks and maintain cost efficiency.”
The following is a high-level outline of the three critical areas of procurement on which organizations – and, more specifically, procurement professionals must focus:
Managing the Impact
Enhanced Monitoring:
Use advanced analytics and cost-tracking tools to identify and manage silent slopes resulting from tariffs.
Supplier Collaboration:
Work with suppliers to understand their cost structures and identify opportunities to mitigate tariff-related price increases.
Diversification:
Diversify sourcing strategies to reduce dependency on materials from countries heavily impacted by tariffs.
Managing the Slope
Sound business planning and practices are timeless regardless of the technology era. Although it was published 12-years ago, it is as relevant if not more relevant today as it was then.
Procurement Insights 
The 2024 Tariff Plan Impact On Direct Material Silent Slopes
Posted on November 26, 2024
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“Clearly, tariffs will raise costs for imported and domestic raw materials (steel, aluminum, plastic resins, wood, paper, etc.). We should all be prepared when suppliers cite these cost increases to justify higher prices for the products they sell us. Preparation includes detecting supplier “Margin Creep” (Silent Slopes) – the common practice of raising prices more than required to cover their cost increases.” – Rod Sherkin, ProPurchaser.com Inc.
According to research, the 2024 U.S. Tariff Plan will likely “accelerate and amplify silent slopes in direct material pricing, creating both challenges and opportunities for procurement professionals.”
By proactively monitoring the associated “trends” and adapting the appropriate negotiating strategies, “organizations can mitigate risks and maintain cost efficiency.”
The following is a high-level outline of the three critical areas of procurement on which organizations – and, more specifically, procurement professionals must focus:
Managing the Impact
Managing the Slope
Sound business planning and practices are timeless regardless of the technology era. Although it was published 12-years ago, it is as relevant if not more relevant today as it was then.
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