At Enable’s Elevate UK conference, CEO Andrew Butt and BBC Policy and Analysis Correspondent Ben Chu explored how businesses can respond to this new era of economic turbulence and how strategic rebate and pricing capabilities can help turn uncertainty into competitive advantage.

The New Reality: Systems in First Gear

Many B2B organizations remain constrained by legacy systems that simply cannot keep pace with today’s speed of change. Andrew Butt shared a striking example: a manufacturing CFO lost $3.2 million because his team couldn’t adjust pricing quickly enough following a 15% spike in material costs—not due to poor strategy or planning, but due to system limitations that delayed execution by 30 days.

This story reflects a broader challenge across industries. Commercial systems are stuck in first gear while the world accelerates around them. Supply chains that took decades to establish are being reconfigured in months. Tariffs appear, change, and disappear with little warning. Traditional annual agreements and manual pricing processes cannot respond to this level of disruption.

According to Enable’s tariff survey of over 1,500 senior executives in manufacturing, retail, CPG, and wholesale distribution, 76% of businesses have already lost margin due to volatility, with 34% of cost of goods sold exposed to tariff impact. Perhaps most concerning, 93% of respondents said their current responsiveness to price changes would risk loss of profit.

Global Forces Redefining Trade

Ben Chu’s analysis revealed that the UK is particularly vulnerable in a fragmented trade environment. With trade accounting for 64% of UK GDP—higher than the global average, China, or the United States—and roughly half of total UK production relying on global value chains, the country has more to lose than most from increased protectionism.  

Chu framed the current environment as an era of “exile economics”—a movement characterized by rejection of economic interdependence, downgrading of multilateral collaboration, and nations striving for greater self-sufficiency. From Donald Trump’s “Declaration of economic independence” to China’s emphasis on self-reliance and India’s “self-reliant India” policy, major economies are pursuing strategies that prioritize domestic production over global trade.

Despite this political rhetoric, the reality of modern commerce tells a different story. Sixty percent of global trade now consists of intermediate products—parts, components, and raw materials that businesses use as inputs to produce final goods. Global value chains remain deeply embedded in manufacturing processes, with trade in intermediate inputs continuing to rise even as trade restrictions have increased.

Chu’s research demonstrates that products from vaccines to semiconductors to food rely on complex international networks. A single microchip can cross international borders more than 70 times during manufacturing, while a typical vaccine plant uses 9,000 different materials sourced from 300 suppliers across 30 countries. This isn’t dependence—it’s interdependence, where manufacturers and distributors across multiple nations all rely on each other.

From Linear Supply Chains to Real-Time Collaboration

Andrew Butt contrasted the traditional linear supply chain model—where manufacturers shipped to distributors who held inventory for contractors—with today’s reality where trading partners win or lose together, working side by side in real time.

The shift is dramatic: what was once 80% local, walk-in business has become over 50% quoted business, with distributors responding to RFPs from contractors seeking competitive bids across national providers. Success now depends on having real-time visibility into true costs and the ability to generate competitive pricing instantly.

One forward-thinking CIO described to Butt how his organization now uses AI to anticipate supplier support for customer projects, creating dynamic pricing in real time based on past transactions and claiming support retroactively. This approach enables them to serve customers at the speed of business rather than waiting days for supplier approval.

Revenue 4.0: Intelligence, Unification, and AI

Butt outlined a vision he calls “Revenue 4.0″—where human relationships and business partnerships combine with AI to create value at the pace of change. This approach emphasizes earning and retaining revenue together with trading partners, achieving higher quality revenue at better margins, and building more strategic, sticky relationships.

The foundation rests on three pillars:

1. Intelligent Pricing and Rebates: Providing optimum commercial terms to each trading partner in real time, regardless of channel—whether customers arrive in-store, via e-commerce, or through other touchpoints.
2. Unified Platforms: Breaking down silos within organizations between finance, sales, purchasing, and pricing teams, while also connecting companies with their trading partners through shared systems and collaborative workflows.
3. AI-Powered Capabilities: Leveraging AI for productivity gains like contract ingestion and data reconciliation, generating insights through scenario modeling and agreement optimization, and enabling full automation such as AI-driven negotiation with long-tail suppliers.

Turning Volatility into Advantage

As Andrew Butt concluded, “In times of volatility, there are two types of companies: those that are swept along by the storm, and companies that are harnessing those same forces for competitive advantage”.

The organizations that will thrive aren’t those attempting to retreat from global trade or reverting to manual processes. They’re the ones investing in platforms that provide real-time visibility across buy-side and sell-side relationships, enable rapid scenario modeling, and facilitate seamless collaboration with trading partners.

The most enlightened manufacturers and distributors recognize they can serve customers better together than apart—customers value both the distributor’s local market knowledge and branch network as well as the manufacturer’s exceptional products.

In an era defined by unprecedented disruption, that collaborative approach powered by intelligent technology offers the best path forward. Volatility isn’t disappearing, but with the right commercial infrastructure, it doesn’t have to be a threat. It can be an opportunity to strengthen partnerships, protect margins, and accelerate profitable growth.

Learn more about adapting your commercial strategy for uncertain times at www.enable.com.

The post Adapting to Volatility in B2B Supply Chains appeared first on Enable.

Price agility is the ability to adjust prices rapidly in response to market volatility, fluctuating costs, or sudden shifts in demand. For manufacturers, this means adapting to shocks like raw material tariffs, freight surcharges, or energy price swings without weeks of internal debate.

Agile pricing is no longer optional. The Tariff Impact Report shows that 93% of companies admit slow response to tariff changes directly erodes profit. In practice, this means every day of delay leaves money on the table.

Consider a mid-sized U.S. auto parts manufacturer sourcing aluminum from Asia. A sudden 15% tariff raises input costs overnight. Without agility, the company spends a month recalculating and pushing price changes through its ERP. By the time adjustments reach the market, competitors with faster pricing tools have already protected margins, leaving the slow mover to absorb losses.

Why Traditional Pricing Models Can’t Keep Up

For decades, manufacturers relied on quarterly or annual pricing cycles. But in today’s volatile environment, these models create costly lag. 61% of businesses still use outdated pricing cycles, and 59% require weeks or months to implement changes.

Tariff volatility accelerates the need for real-time responsiveness. When tariffs swing from 5% to 25% between shipments, spreadsheets and slow governance processes aren’t enough.

For example, a Canadian electronics manufacturer importing circuit boards faces a tariff spike from 10% to 20%. With quarterly pricing updates, the business absorbs the full cost increase for weeks. Its faster-moving competitors pass on part of the cost immediately, avoiding erosion. Worse, when tariffs are lifted, the slow responder risks appearing opportunistic if it keeps prices high while rivals cut quickly.

Benefits of Pricing Agility in Uncertain Markets

Agile pricing delivers resilience and advantage in unpredictable times:

• Immediate margin defense: Manufacturers offset cost shocks instead of absorbing them.
• Strategic opportunity: Faster movers capture share when rivals falter.
• Customer trust: Transparent adjustments protect long-term relationships.

Enable’s research shows 96% of organizations now treat pricing as a strategic lever, not just an administrative task.

Key Factors Driving the Need for Price Agility

Global Supply Chain Disruptions

From semiconductor shortages to port delays, manufacturers are hit first when supply chains falter. Unpredictability in logistics amplifies cost volatility, demanding agile pricing to remain profitable.

Fluctuating Costs and Tariffs

The Tariff Impact Report found that 34% of the average manufacturer’s cost base is exposed to tariffs. With protectionist trade policies rising, the frequency and scale of tariff changes have made pricing agility an urgent capability.

For example, a European machinery manufacturer importing steel sees its tariffs jump by 10%. Without an agile system, they face margin compression. Competitors with pricing software immediately model the tariff impact, adjust global pricing, and communicate changes transparently protecting both profitability and reputation.

Real-Time Market Changes

Tariffs are just one factor. Inflation, freight surcharges, and energy volatility all create compounding effects. 89% of manufacturers are worried about rising energy costs, further destabilizing pricing structures.

How Pricing Agility Enhances Resilience

Reacting Quickly to Cost Fluctuations

When raw material costs spike, agility means the difference between eroded margins and sustained profitability. With tools like Enable’s Tariff Price Planner, manufacturers can model tariff scenarios across SKUs and implement global or selective adjustments within minutes.

For example, a chemical manufacturer hit with a sudden 25% tariff on imported compounds runs a simulation, testing full vs. partial pass-through to customers. Within hours, they implement differentiated increases across regions—avoiding blanket hikes that could strain sensitive markets.

Strategic Adjustments to Protect Margins

Agility isn’t just reaction, it’s precision. 54% of companies plan global price changes, while others choose segmented approaches. Manufacturers can selectively raise prices on elastic products while preserving competitiveness elsewhere.

Maintaining Customer Satisfaction During Volatility

Manufacturers face a delicate balance: 85% say customers are sensitive to tariff-related increases, and 94% worry about damaging relationships. Transparent communication—such as itemizing tariff impacts on invoices—helps explain price changes as a response to government actions, not opportunistic profiteering.

Building an Agile Pricing Model

Integrating AI and Machine Learning for Real-Time Adjustments

AI-powered pricing systems simulate cost changes, predict customer reactions, and execute dynamic adjustments at scale. Automation is a core enabler, while Enable research shows 80% of businesses plan to invest in pricing technology within the next year.

Balancing Dynamic Pricing and Profitability

Dynamic pricing must balance competitiveness with profitability. Scenario modeling and impact analysis ensure manufacturers avoid overcorrection, while transparent communication builds customer confidence.

Why Agility Is a Long-Term Investment in Business Growth

Flexibility as a Competitive Advantage

For manufacturers, pricing agility transforms volatility into opportunity. As Enable CTO James Lett notes, sometimes the bold move is lowering prices while competitors raise theirs, using tariffs as a chance to capture share.

For example, a U.S. furniture manufacturer, facing tariffs on imported wood, chooses not to fully pass on costs. Instead, it selectively lowers prices on key product lines while competitors hike prices. This counterintuitive strategy wins loyalty from distributors and retailers, fueling long-term growth.

Developing a Culture of Pricing Adaptability

Sustainable agility requires more than technology—it demands a cultural shift. Manufacturers need cross-department collaboration, data transparency, and a mindset that treats pricing as a strategic weapon rather than a back-office chore.

Turning Tariff Turbulence into Pricing Agility

Manufacturers today face a tariff landscape where 76% have already experienced margin erosion. Traditional pricing models are too slow for modern volatility, and customers are too sensitive to accept opaque increases.

By adopting agile pricing, manufacturers gain real-time defense, customer trust, and market advantage. With AI-powered tools, scenario planning, and transparent strategies, pricing becomes more than a defensive lever—it becomes a growth engine.

Those that adapt now won’t just survive tariff turbulence; they’ll redefine competitiveness for the next decade.

Ready to see how your business can stay ahead of tariff volatility? Explore Enable’s Tariff Price Planner to model costs, simulate strategies, and execute real-time price adjustments with confidence.

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In this blog, we’ll unpack the fundamentals of tariffs: what they are, how they’re enforced, how they affect companies and consumers, and how businesses can adapt to tariff volatility.

Tariffs Explained: What They Are and Why They Exist

A tariff is a tax placed on goods that are brought into a country. When a business imports a product from another country, that government may charge an import duty that adds to the cost of bringing those goods across the border. This fee can vary based on the product type, where it’s coming from, and the terms of any trade agreements in place.

The Purpose Behind Import Duties

Why impose tariffs in the first place? There are a few major reasons:

• Protecting domestic industries from foreign competition is a key one. By making imported goods more expensive, tariffs can give local businesses a better chance to compete.
• Generating revenue is another major motivator, especially for countries that rely on imports and don’t have strong internal tax systems.
• Tariffs also serve as leverage in international politics, allowing countries to negotiate more favorable trade terms or retaliate against unfavorable practices.
• And finally, they can be used to influence consumer behavior, encouraging people to buy more domestically produced goods.

Who Sets Tariffs and How They Are Enforced

Tariff policy is typically set by a nation’s government or trade authority and enforced by customs agencies. In the U.S., organizations like the United States International Trade Commission (USITC) and Customs and Border Protection (CBP) are involved in determining and collecting tariffs.

Tariffs can be unilateral, negotiated through trade agreements, or implemented as retaliatory measures. Their rates and structures are constantly evolving based on economic needs, political agendas, and global relationships – with early 2025 bringing higher levels of tariff volatility than we’ve seen in nearly a century. That means staying up to date on the latest tariff updates is essential for any business involved in cross-border trade.

How Tariffs Are Calculated on Imports

While the concept of a tariff seems straightforward—a tax on an imported good—the actual calculation is often more complex than expected. Several factors play into determining how much a business will pay.

HS Codes and Product Classification Systems

Every product that moves across borders is assigned a specific Harmonized System (HS) code. This internationally recognized system helps customs officials categorize products consistently, and it plays a central role in identifying applicable tariff rates. Getting this classification wrong can lead to overpaying on tariffs—or worse, compliance issues and shipment delays.  

Role of Country of Origin and Trade Agreements

The country where a product is manufactured can significantly affect the tariff rate. Many nations have bilateral or multilateral free trade agreements (FTAs) that reduce or eliminate duties on goods exchanged between member countries.

For example, goods traded within the United States-Mexico-Canada Agreement (USMCA) often qualify for zero tariffs, provided they meet specific origin requirements. However, new tariffs under the second Trump administration may impact the terms of this deal, leaving its future uncertain.  

On the other hand, countries not covered by an agreement may face higher tariff rates or more complex import conditions. Rules of origin, certificates of origin, and preferential rates all come into play here, adding another layer of complexity to the process.

Calculating Based on Value, Weight, or Quantity

Tariffs are commonly calculated in one of three ways:

• Ad valorem duties are based on the value of the goods (e.g., a 10% tariff on a $10,000 shipment means a $1,000 duty).
• Specific duties are based on quantity or weight (e.g., $5 per kilogram of imported material).
• Compound duties combine both methods, applying a fixed rate and a percentage of the product’s value.

Which method is used depends on the product, the importing country, and the applicable trade rules. Accurately identifying the correct structure is critical to avoiding costly miscalculations.

How Tariffs Impact Businesses and Consumers

From procurement to product pricing, the ripple effects of tariffs can be felt across the entire supply chain.

Increased Costs Passed to End Buyers

One of the most immediate and visible effects of tariffs is higher prices for consumers. When businesses pay more to import goods, they often pass those costs along. That $100 jacket from overseas? If hit with a 25% duty, it might suddenly retail for $125 or more.

Over time, these cost increases can influence buying behavior, impact brand loyalty, and even shift market dynamics as consumers seek more affordable alternatives.

Lower Margins and Sourcing Shifts

For businesses, especially manufacturers and retailers, tariffs can significantly eat into profit margins. Companies that once relied on a low-cost international supplier may find themselves squeezed by new duties.

This pressure often leads to sourcing shifts as businesses seek alternative suppliers in different regions or even reshore production back home. These decisions are rarely simple and require long-term strategic planning.

Global Supply Chain Realignments

When tariffs disrupt sourcing strategies on a large scale, entire supply chains can shift. In recent years, companies have moved operations from countries like China to places like Vietnam, India, or Mexico in response to tariff increases or trade tensions.

These realignments affect logistics, lead times, relationships, and risk exposure. Businesses that can adapt quickly to changing trade conditions are at a significant advantage.

How Companies Can Manage Tariff Impact

Tariffs may be unavoidable, but their impact doesn’t have to be unpredictable. With the right strategies and tools, businesses can reduce exposure, increase agility, and make more informed decisions.

Dynamic Sourcing Strategies

Agility is key in a volatile trade environment. Many companies are adopting dynamic sourcing approaches, building flexible supplier networks that allow them to switch partners or regions based on tariff changes or geopolitical events. This agility reduces dependency on any one supplier or country, helping companies avoid costly surprises.

Rebate Incentives to Offset Duties

To manage the rising costs caused by tariffs, many businesses are turning to rebate programs as a flexible pricing strategy. Instead of raising prices across the board or absorbing the full cost, companies can offer targeted rebates such as volume-based incentives or time-limited offers to help customers stay engaged despite higher list prices. This approach helps maintain sales and customer loyalty without eroding margins.  

Real-Time Tariff Tools for Smarter Planning

Today’s leading businesses are using technology to plan around tariffs, not just react to them. Real-time tariff databases, modeling platforms, and digital calculators provide instant visibility into duty rates, trade rules, and cost scenarios. These tools help companies forecast tariff exposure before a shipment even leaves the warehouse, giving them a clear advantage when it comes to planning and profitability.

The Role of a Tariff Calculator in Modern Trade Strategy

A tariff calculator is a powerful tool that can simplify the complexities of tariff impacts and help companies make smarter, faster decisions.

Automating Complex Calculations

Manually calculating duties, especially across thousands of SKUs or multiple suppliers, is both time-consuming and prone to error. A good tariff calculator automates this process by pulling in HS codes, product data, and tariff rules to deliver accurate estimates instantly. This kind of automation frees up teams to focus on strategy rather than spreadsheets.

Modeling Future Scenarios Based on Policy Risk

Beyond day-to-day duties, a modern tariff calculator can help businesses run scenarios based on changing policies. What would happen if tariffs were lifted next quarter? What if a trade deal falls through? By running “what if” models, companies can build more resilient supply chains and prepare for any outcome.

Try Enable’s Tariff Calculator and Take Control of Trade Costs

Tariffs are complicated—but managing their impacts doesn’t have to be. Enable’s tariff calculator makes it easier to stay ahead of shifting trade policies, plan for the future, and minimize unnecessary costs. Whether you’re importing raw materials or finished goods, the tariff calculator helps you understand your tariff exposure in real time and take control of your strategy.

Ready to simplify tariff planning? Try Enable’s Tariff Calculator today to stay ahead of volatility and start building a more resilient strategy.

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