Air Freight News

Mitigating potential tariff impact with River Logic’s Value Chain Optimization™ Solution

Feb 13, 2025

River Logic's Value Chain modeling innovation provides customers with capabilities beyond network design, allowing for end-to-end strategic planning, including financial modeling, margin optimization, and scenario planning

As global trade uncertainty and rising tariffs continue to threaten business profitability, River Logic, a global innovator in network design and optimization, announced today that it is now offering customers a targeted service to assess and mitigate tariff impacts, by seamlessly integrating supply chain constraints with dynamic cost modeling in a matter of weeks.

Most businesses today lack the right tools to fully assess financial impacts and develop effective mitigation strategies. Traditional financial models fail to incorporate supply chain constraints, while network design tools rely on outdated standard costs, leading to flawed decisions. To effectively address tariff risks, companies must go beyond simple cost assumptions and integrate dynamic factors such as materials, labor, energy, and transportation costs and how these are impacted by activity and constraints.

"In today's dynamic trade landscape, manufacturing companies must rethink how they assess and mitigate tariff risks," said Carlos Centurion, President of River Logic. "River Logic's Value Chain Optimization™ (VCO) empowers companies to make smarter, faster decisions that anticipate cost fluctuations under different tariff scenarios, and by integrating extended supply chain constraints with dynamic cost modeling, businesses can not only protect margins but also uncover new competitive advantages", continued Centurion. "Over the past several years, our technology has been able to support our customers and solve for a range of problems, from geo-political, to cost disruptions and sustainability, and now tariffs. Our experience, combined with our software capabilities is now enabling us to offer a quick to deploy service in support of companies that need urgent help to battle tariffs and identify the best mitigation strategies within just a few weeks."

"We are already supporting existing customers who incorporate tariffs along with other value chain costs and supply chain constraints, enabling them to make informed decisions on product mix, customer segmentation, and pricing strategies to maximize profitability," says Eric Kelso, River Logic's Vice President of Product Management. "More than ever, and at a critical time when supply chain resiliency is top of mind, we are demonstrating how the implementation of our Value Chain Optimization solution enables for impactful results across the entire value chain, and we are ready and confident in our ability to provide assessment capabilities to new customers".

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