With Altana, a Global Auto Manufacturer Gains Competitive Advantage During Tariff Turmoil

Challenge

A global auto manufacturer was facing significant challenges managing its exposure to tariffs. The volatile tariff landscape, including new levies on Chinese goods, expanded tariffs on aluminum and steel, and threatened tariffs on Canada and Mexico, left the company exposed both to direct hits and new costs buried deep within its multi-tier value chains. These costs were largely unseen and unanalyzed.

The manufacturer struggled to quantify the extent of exposure to the new tariffs, as most of the impact was concealed in Tier 2 and Tier 3 suppliers. According to Altana's analysis, 98% of automakers' exposure to aluminum tariffs comes from suppliers in Tier 2 or deeper in the value chain. Without comprehensive visibility into these deeper supply chain tiers, the manufacturer could not properly assess financial risks or develop strategies to mitigate them.

Altana Introduces Tariff Scenario Planner as Trade War Rattles World

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Solution

With Altana's Tariff Scenario Planner, the business gained granular, actionable insights that enabled it to tackle tariff challenges effectively. The solution provided visibility into multi-tier product value chains that revealed previously hidden dependencies and risks.

The Tariff Scenario Planner offered three critical capabilities, enabling the manufacturer to:

Pinpoint exposure down to the shipment level, giving a clear view of the tariffs’ impact on product costs. This level of detail allowed the manufacturer to see exactly which components and products would be affected by new tariffs.
Identify high-risk suppliers and quantify their impact on costs. Instead of merely identifying general exposure to non-U.S. suppliers, the manufacturer could see precisely how much of its cost base for each supplier flowed from different countries subject to tariffs. For example, they could determine that 6% of costs for Supplier A came from China to the U.S. in a multi-tier network, compared to 2.5% for Supplier B.
Search for qualified suppliers outside of affected trade lanes. This capability allowed the manufacturer to reduce risk and maintain supply chain continuity by identifying alternative sourcing options in trade lanes unaffected by the new tariffs.

Impact and Future

The partnership with Altana transformed how the manufacturer approached tariff challenges. It enabled the company to develop a mitigation strategy based on comprehensive visibility into its supply chain visibility, preparing it for announcements of new tariffs

The results were substantial: Altana's Tariff Scenario Planner identified 346 suppliers subject to tariffs on China, 220 to tariffs on Mexico, and 112 on Canada.

Altana’s analysis also revealed $4.2B in direct spend at risk, with projected cost increases averaging 18%. This level of granular insight had not been possible with traditional supply chain management tools.

The manufacturer now has the tools to maintain business continuity in the face of volatile U.S. and foreign tariff policy. When new tariffs are announced, the company can immediately assess the impact across its entire supplier network and take action.

The ability to prioritize supplier relationships based on tariff impact has enabled the company to address the highest-risk areas first. Equipped with data showing which suppliers are the most exposed to tariffs, the company could make strategic decisions about where to diversify first. This approach has helped the manufacturer manage costs effectively during a period of significant uncertainty.

Additionally, the superior intelligence on the supply chain has proven a competitive advantage. While its competitors struggled to understand their exposure to new tariffs, the company can quickly assess impacts, identify alternatives, and adapt its strategy accordingly.

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