**Companies Contemplate Inventory Strategies Amid Potential Tariffs and Port Strike**

As the U.S. approaches a period of uncertainty under President-elect Donald Trump’s pledge to introduce higher tariffs, businesses are re-evaluating their inventory management strategies in light of potential disruptions, including a looming second port strike in January. This situation has left many companies, including some of the world’s biggest logistics firms like Eden Prairie-based C.H. Robinson, grappling with complex decisions.

C.H. Robinson, a giant in global logistics, reports an influx of inquiries from clients regarding how to adjust their inventory plans in these unpredictable times. Mike Short, President of Robinson’s Global Forwarding business, highlighted the challenges, saying, “Even if some companies want to front-load, it might not be feasible if their suppliers can’t ramp up production.” Factors influencing these decisions include concerns over the anticipated mid-January port strike, the upcoming Lunar New Year at the end of January, and the potential for new tariffs.

Supply chain experts emphasize the inherent complexities of global supply chains, which can't be adjusted as easily as turning on a faucet. Importing goods from overseas can take several months, and making last-minute changes can incur significant costs. A case in point is Target, which increased its inventory in preparation for an anticipated October port strike. Although the strike was brief and minimally disruptive, Target experienced additional costs, causing a 12% dip in profits. CEO Brian Cornell remarked, “We’re never quite as efficient when our buildings are full.”

The supply chain disruptions from the pandemic have left a lasting impact on many businesses, prompting a reevaluation of their inventory strategies in anticipation of future economic shocks. Holden Lewis, Chief Financial Officer of Fastenal, notes that supply chains thrive on predictability, systematic operations, and accurate demand forecasting. This sentiment is echoed by Mike Short, who underscores the importance of diversification and vigilant monitoring of global trade policy changes.

In response to potential trade policy shifts, many companies have been exploring reshoring, near-shoring, or friend-shoring initiatives, though such adjustments require time to implement. “Shippers must pay attention not only to changes in the U.S. but also across the globe,” Short advised, emphasizing that Robinson’s customs and trade policy team works diligently with customers to navigate these changes and maintain compliance.

While supply chain experts have formulated plans for handling economic disruptions, the exact impact of upcoming tariffs and strikes remains unpredictable, posing significant challenges to businesses as they strive to maintain efficient operations amidst these uncertainties.