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With the announcement that Australia will not be exempt from Donald Trump’s 25% tariff on Australian steel and aluminium manufacturers will need to manage the financial and operational impacts.
Celonis, the global leader in Process Mining and Process Intelligence, has a tariff management solution as part of its platform.
Pascal Coubard, the APAC Lead for Celonis, said the platform provides a clear view of a company’s import and export transactions, assessing tariff exposure and impacts as well as financial risk.
“Organisations can quantify additional costs related to purchasing and selling goods, helping finance and procurement teams adjust pricing models and cost structures in real time,” he said.
Using Celonis, manufacturers will be able to reduce the risk in their supply chain by:
- Identifying materials, suppliers, and customers impacted by critical tariffs.
- Highlight at-risk materials that lack alternative suppliers.
- Receive recommendations for alternative sourcing options.
- Notify procurement teams to begin negotiations proactively.
“This proactive approach ensures that supply chains do not grind to a halt when tariff policies need to be implemented,” Mr Coubard said.
He said Celonis simulates scenarios which enables businesses to model different tariff scenarios, allowing them to:
- Assess how a sudden increase in tariffs affects their cost structure.
- Evaluate the impact on margins to adjust sales prices.
- Adjust supplier contracts and logistics strategies accordingly.
“As such, companies can support cross-functional teams consisting of procurement, supply chain and sales to identify the critical areas for action, helping to formulate the right response,” he said.
Exports to the US of Australian aluminium and steel are around $1 billion. The Australian companies most affected by tariffs include BlueScope, Alcoa and Rio Tinto, although BlueScope is likely a “net winner”, according to Macquarie analysts, due to its significant US operations.
