For most business leaders, the impact of the newly announced tariffs is top of mind. We sat down with Michael Perica, CFO at Rimini Street, to get his perspective on what actions finance and IT executives should take to better prepare their business for the unknown.
How can organizations respond to tariff concerns?
Drawing from my conversations with clients and peers and from my own experience, there are four approaches I recommend organizations consider in offsetting the impact of tariffs:
- Start with a dynamic scenario analysis: Some of our clients are exploring the idea of moving a portion of their supply chain to different regions of the world. There are considerations such as the tax, legal, and regulatory (TL&R) requirements for different jurisdictions, which can be quite complex. We have decades of experience delivering TL&R for more than 160 countries, and are working directly with executives in their analysis and exploratory reviews, helping them get their scenario planning underway.
- Think long-term: Tariffs might be a short-term policy decision, but shifting a supply chain is a long-term strategy. Clients who focus on optimizing their supply chain rather than simply passing along costs to consumers, or those who choose an approach combining both strategies, are in a much better position to cope with tariffs or any other unknown disruptions to the business. Whether or not tariffs end up affecting an organization, executives can still benefit from planning for them because they can use the process as an opportunity to diversify their supply chains. Leaders should be prepared for the reality of tariffs while taking steps to ensure the long-term flexibility of the entire supply chain.
- Avoid one-size-fits-all-solutions: Because they impact the top-level P&L, tariffs have implications across the entire organization and all functions – investors, shareholders, the board, the executive team, all the way down. Look at every component in your organization to make sure they’re ready to be flexible. Your product, end-market segment, client base, supply chains and sourcing are unique to your business, and a well-thought out strategy needs to address those nuances. Just because a particular organization has had success making a strategic pivot, doesn’t mean the same exact solution may be right for yours.
- Look for exemptions. Consult with the Office of the United States Trade Representative (USTR) to identify any exclusions or exceptions that might apply to your organization.
What proactive measures would you recommend to CFOs navigating potential tariff-induced disruptors?
Whether dealing with tariffs, globalization, deglobalization, or supply chain management, maintaining operational discipline and driving continuous improvement positions organizations for success and is what successful CFOs can champion. By stepping up as a leader and having a ownership mindset, finance executives have the power to transform challenges into opportunities, empowering businesses to gain a true competitive edge.
And this isn’t just because of the changes happening in government in recent times. The ebb and flow, the ups and downs, these are cycles and statistics that will happen at some point in history. Many organizations affected by tariffs in their past have since developed a stronger foundation, enabling more dynamic and rapid responses. If this is your first time facing such challenges, a dynamic scenario analysis and a global perspective are essential to positioning your organization for success.
How could tariffs in 2025 potentially impact an organization’s IT roadmap, in particular, their ERP strategy?
Tariffs and the potential for a global trade war can have far-reaching implications for an organization’s overall IT strategy and roadmap. The extent of these impacts depends on factors such as industry, location, and how tariffs are applied to a company’s supply chain and operational structure. Businesses must prepare for shifts in costs, regulatory requirements, and technology strategies to remain competitive. For example, you may opt for local sourcing, requiring ERP system tweaks to efficiently handle new supplier onboarding, procurement workflows, and compliance tracking, often with automation embedded.
Increased costs may also necessitate more advanced ERP capabilities, such as dynamic pricing, cost simulations, and complex margin analysis, to ensure profitability. Furthermore, businesses will need to decide between stockpiling goods which requires advanced inventory management capabilities or adopting a just-in-time (JIT) strategy, which demands improvements in forecasting, warehouse, and inventory management modules within ERP systems.
With much unknown in terms of what changes will be coming down the road, it is important to prioritize flexibility of systems and avoid buying expensive products for features and functionalities you may not need or that could drain your budget and critical resources needed to weather storms and additional changes.
How should organizations facing tariffs balance operational efficiency with increased expenses?
Balancing “nice-to-haves” and “must-haves” requires discipline. Pausing less critical projects to prioritize strategic goals is essential. Operational efficiency and continuous improvement should always remain a priority, not just during disruptions like tariff changes. Global producers must adapt to shifting demands and sourcing challenges, especially in a globalized economy.
While de-globalization trends emerge, demand won’t shift as quickly as supply. Flexibility is key for new ventures or M&A integrations. Companies that prepare for shifts – whether demand changes or supply chains are impacted by tariff policies – will outperform competitors.
What are potential positive opportunities for organizations as they develop strategies to offset the tariffs?
From the outset, investing in our people and viewing challenges as opportunities has been key. These challenges, while stressful, often create opportunities. Experience teaches us that addressing difficulties head-on can lead to greater rewards. Instead of viewing change as a negative, we see it as a chance to innovate and improve. These solutions require reliable labor and sound strategies that balance costs with adaptability. Challenges like these push us to think creatively and execute effectively, turning difficulties into opportunities for growth.
At Rimini Street, we are fortunate to work with many of the largest global manufacturing market leaders. Through our deep partnerships, we are proud to help organizations respond quickly, enhance flexibility, and achieve better economics. It’s a win for our clients, but also a significant intrinsic reward for our colleagues who are passionate about our clients’ success.
How can Rimini Street help organizations facing tariffs?
Today’s IT environments are highly complex, with large enterprises managing hundreds of software applications. Inefficiencies and unnecessary IT spending can drain resources, with reports of about a third of annual investment in data center software, SaaS, IaaS and PaaS wasted. This waste can result from limited vendor support which may require additional overhead costs to keep mission-critical systems running, redundant systems, unnecessary upgrades, and mismanaged cloud deployments. During times of uncertainty, stability, and cost optimization is paramount.
Rimini Street helps organizations extend the life of mission-critical systems through expert third-party support that allows you to:
- Benefit from proven end-to-end IT support and services including managed and professional services to bridge IT talent gaps and streamline enterprise applications.
Rimini Street’s unified enterprise software support and services have helped clients save an estimated $9 billion to date, helping provide organizations with the financial and operational flexibility to navigate economic challenges and drive transformation without disruption.
Key Takeaways
Though tariffs in 2025 could introduce significant complexities, companies that plan strategically, optimize their IT resources, and adopt a proactive approach can turn these challenges into opportunities. Learn how Rimini Street can help your organization reduce costs, increase value, and drive business success amid economic uncertainty.
