„Play Your Trump Card: Outsmart Customs Tariffs with Smart Simulations“
Problem
As an international company in the field of connection technology, we face the challenge of supplying our US customers efficiently and reliably from plants in 15 countries. Around 80% of our US deliveries come from China. The introduction of punitive tariffs in 2018 presented us with fundamental strategic questions: Should we relocate production from the US to China? How high will the effective customs costs be? And how will production, transport, handling, and storage costs change?
Solution
SC X supported us with a comprehensive analysis of all relevant costs and their impact on our supply chain. Alternative locations such as Mexico and other South American countries were also examined in detail.
We were particularly impressed by the speed and quality with which SC X collected and consolidated data and generated new insights. The project has convinced our management of the potential of artificial intelligence and led to a significant increase in the budget for AI projects.
Benefit
The results of the simulation surprised us: relocating production from China to Switzerland proved to be the best scenario, with significantly lower customs duties, optimized production costs, and improved delivery times.
We value our partnership with SC X and highly recommend the company as a competent and innovative partner for complex supply chain analyses and strategic decisions.