Retailers Scramble for Smarter Inventory Management as New Tariffs on China Loom

Retailers are once again bracing for disruption as the Biden administration signals a return to Trump-era tariffs on a range of Chinese imports — a move that threatens to squeeze already strained supply chains.For inventory and supply chain leaders, the news is a stark reminder that traditional planning cycles and spreadsheet-driven forecasting are no longer sufficient.

Visibility, Control and the Cost of Inaction

The underlying problems many retailers face are neither new nor surprising — but they remain critical. Cyrus Mahler, COO of Prediko.io explained that "the biggest challenge we solve is giving retail brands clear visibility and control over inventory — what to buy, when to buy it, and how much. Many retailers still rely on Excel-based forecasting and fragmented dashboards, leading to stockouts, overstock, and wasted working capital."

In retail, inventory is often the largest line item on the balance sheet — but it also carries the potential to become a crippling liability. Lack of visibility leads to reactive purchasing decisions, overcommitting working capital, and lost sales when shelves go empty. Manual forecasting, disconnected spreadsheets, and scattered dashboards only compound the issue, creating a fractured view of true demand versus available stock.

Prediko’s platform addresses this gap by replacing fragmented tools with a fully integrated, real-time system. Mahler noted, "Prediko replaces their manual and disconnected setup with a real-time sync with their Shopify store. Our AI-powered demand planning predicts what to buy, analyzes the supply chain data — stock levels, supplier lead times, min/max covers, and more — to recommend future buys, and lets them create purchase orders in seconds."

This approach allows retail operators not just to forecast better but to act faster, creating POs based on data-driven recommendations rather than gut feel or outdated inventory snapshots. In an environment where supplier lead times fluctuate and customer expectations are unforgiving, such speed is becoming critical for survival.

The Hidden Risks of Siloed Data

When asked about deeper vulnerabilities in today’s supply chains, Mahler pointed to the root causes many operators overlook. "The most common vulnerabilities come from outdated tools and siloed data. Many retailers are still managing thousands of SKUs in spreadsheets, without real-time visibility into stock levels, landed costs, fulfillment timelines, or supplier capacity."

Without centralized, up-to-date data, inventory managers lose the ability to quickly react to market shifts — such as tariff changes, freight delays, or supplier disruptions. Worse, fragmented data systems prevent retailers from evaluating sourcing alternatives or warehouse strategies when conditions shift.

"This creates a lag in decision-making, especially when reacting to changes like tariffs or shipping delays," Mahler added. "Another key risk is the inability to compare costs across suppliers quickly — a critical capability when considering changes in sourcing or warehousing strategy."

Closing the Gap Between Data and Action

Prediko’s approach focuses on bridging the gap between visibility and execution."Prediko helps retailers minimize these risks by centralizing their data and turning that data into an action plan," Mahler said. "The platform connects directly to Shopify, syncs product and supplier data in real-time, and instantly generates different metrics for educated business decisions." Where legacy tools often overwhelm teams with complexity and enterprise-grade functionality that smaller retailers don’t need, Prediko focuses on simplicity and usability. "Unlike traditional tools that are overly complex or built for enterprise use, Prediko has an intuitive UX that lets retailers plan, analyze, and order smarter in just a few clicks," she explained.

At the core, it’s about equipping retailers with accurate forecasts, immediate stock visibility, and easy-to-execute workflows. "Our software offers AI to improve forecasting accuracy, real-time stock visibility to make the right decisions, and a simple interface to make executing these decisions quick and easy," Mahler said.

Cyrus Mahler, COO of Prediko

The Expanding Need for Smarter Decisions

The need for faster, smarter decision-making extends beyond demand planning. Meanwhile, Aera Technology, responding to The Supply Chainer’s inquiry, showcased how decision intelligence is redefining the rules altogether.

"Inventory optimization is just one critical area where Aera is helping companies improve supply chain performance," said Fred Laluyaux, CEO of Aera Technology. "From the start, we designed Aera as an always-on decision intelligence agent to continually accelerate and optimize enterprise decision-making at scale and unlock new value. Today, decision intelligence is a must-have, and Aera is at the forefront — fueling amazing innovation and measurable outcomes for progressive leaders."

Unlike the buzzwords tossed around in supply chain tech marketing, recent customer outcomes highlight the operational value of these technologies. Aera cites a global beverage company that used its Decision Cloud platform to dynamically redistribute aging inventory, minimizing spoilage and unlocking millions of dollars in working capital. Another client, a technology manufacturer, reportedly reduced inventory management costs by 50 percent and solved tens of thousands of shortages each week by automating key supply chain decisions.

A Broader Shift Taking Hold

Both companies — Prediko and Aera — point to a broader shift underway.Retailers who continue to rely on manual systems and siloed data risk falling behind. Those investing in real-time visibility, predictive analytics, and automated decision-making are not just reacting faster — they are reshaping the economics of their supply chains. With trade policies in flux and consumer demand more volatile than ever, inventory is no longer just a cost to manage. It’s an asset to optimize — or a liability waiting to happen.