Tariff Compliance & Fee Recovery Project
Project Summary
The Tariff Project aimed to mitigate the impact of new government-imposed tariffs on imported goods being sold in the United States, which impacted retail and e-commerce operations. The purpose of this project was to ensure compliance with the tariffs mandates while minimizing the financial impact on the company. The company aimed to maintain profitability and prevent future financial losses.
Problem Statement
The imposition of tariffs on imported goods introduced significant financial challenges for the company, especially in high-impact categories like furniture, lighting, and school supplies. The company struggled to recover these costs due to system limitations, particularly with customers with whom they held contractual agreements. As a result, the company faced potential financial exposure of up to $133.9 million. The project sought to develop a solution to avoid these potential losses, ensuring full compliance with the tariffs while maintaining operational efficiency and customer satisfaction.
Key Objectives
• Automate the application of tariff fees at various stages of the order process
• Implement technical solutions across multiple platforms (e-commerce, mainframe, etc.) to ensure seamless integration of tariff fees
• Implement technical solutions across multiple platforms (e-commerce, mainframe, etc.) to ensure seamless integration of tariff fees
Solutions Implemented
• Implemented a fee program to automate tariff calculations across various platforms to handle customer-specific tariff exemptions
• Adjusted product prices based on tariff lists, with special focus on high-impact categories like furniture and school supplies
• Adjusted product prices based on tariff lists, with special focus on high-impact categories like furniture and school supplies
Outcomes Achieved
• Over five weeks, the project recovered $68,000 in tariff costs due to automated tariffs
• Successfully rolled out tariff exclusions for specific customers
• The retail pricing adjustment for tariffs over 52 weeks led to $19 million in revenue
• Successfully rolled out tariff exclusions for specific customers
• The retail pricing adjustment for tariffs over 52 weeks led to $19 million in revenue
Responsibilities
(See my Core Responsibilities across all projects)
• Learned and reviewed tariff mandates: Gained in-depth knowledge of the Section 301 Tariff legislation by reviewing its requirements and understanding its impact on imported goods and compliance processes. Collaborated with development team to ensure that solutions aligned with legislative requirements
• Coordinated end-to-end testing: Managed and coordinated end-to-end, Integration Testing, and Regression Testing among all project teams, including the Order Management, Finance, Sales Accounting, EDI, EAI, DW, EBS, B2B, COS, WMS, Business Rules Engine, Retail Pricing, and Mainframe teams, ensuring successful integration across all systems
• Coordinated end-to-end testing: Managed and coordinated end-to-end, Integration Testing, and Regression Testing among all project teams, including the Order Management, Finance, Sales Accounting, EDI, EAI, DW, EBS, B2B, COS, WMS, Business Rules Engine, Retail Pricing, and Mainframe teams, ensuring successful integration across all systems
Fee Engine Data Flow
This process flow has been simplified and modified to protect confidential information.
