by Paul F. Magel, President, Computer Generated Solutions, Inc. (CGS)
Tariffs may be dominating headlines yet again, but they are only one disruption in an ever-growing list facing global fashion and apparel supply chains. Inflation, labor shortages, shifting trade policies, and geopolitical instability are the new normal. For fashion and apparel brands, the challenge isn’t just how to absorb the cost of tariffs, but how to build supply chains resilient enough to handle future economic disruptions.
India in the crosshairs: 50% tariffs and rising costs
Nowhere is this more pressing than in India. The recently announced U.S. tariff hike — doubling duties on Indian exports to 50% — has placed manufacturers at a steep disadvantage compared to competitors in Vietnam, Bangladesh, and elsewhere. While the Indian government is exploring ways to soften the blow, such as allowing duty-free imports of productivity-enhancing equipment, manufacturers can’t afford to wait for policy alone to provide relief. Rising labor costs in India — already climbing from $300 to $600 per month in some regions — are compounding the pressure.
The good news? Technology offers a practical path forward. Digital supply chain solutions can help Indian manufacturers and their global partners improve productivity, sharpen visibility, and strengthen collaboration — essential tools for weathering both today’s tariff storm and tomorrow’s disruptions.
When tariff shocks meet outdated systems
Too many supply chains still run on fragmented, outdated systems that make it nearly impossible to see where risks lie or how to respond quickly. When tariffs spike overnight, brands scramble to reprice SKUs, exit sourcing regions, or renegotiate with vendors — moves that often create more disruption than the tariffs themselves. I call this “tariff derangement syndrome”: a reactive, short-term approach that leaves companies exposed.
Building resilient, smarter supply chains
Brands know they can’t sit still. In fact, according to the annual BlueCherry global supply chain & technology report, 85% of fashion executives say improving supply chain visibility is now a top priority, and nearly two-thirds already have IT projects underway to achieve it. The message is clear: resilience doesn’t come from guesswork — it comes from visibility and digital foundations. Here’s how technology can deliver that:
- Start with clean, connected data. AI is only as good as the data that feeds it. By unifying ERP, PLM, inventory, and logistics data, brands can create a single source of truth. This foundation makes advanced analytics and scenario modeling reliable and actionable.
- Add in AI-powered planning. Once validated data is in place, AI tools can model different tariff scenarios, forecast demand shifts, and simulate sourcing alternatives. For example, companies can test how shifting production from one geography to another would affect costs, lead times, and margins.
- Boost shop floor productivity. In India, where labor costs are rising, digital shop floor control (SFC) systems are quickly gaining traction. These tools monitor productivity in real time, helping manufacturers identify bottlenecks, boost output, and offset tariff-driven cost pressures.
- Build sourcing optionality. Nearshoring and supplier diversification are not quick fixes, but building optionality into your sourcing mix reduces dependency on any one region or partner. AI can stress-test these strategies before companies commit.
- Strengthen supplier partnerships. Data is currency, and its value increases when shared. By deploying the right technology, manufacturers can offer global clients the real-time visibility they increasingly demand, while also aligning with vendors on KPIs, sharing data, and building risk-sharing agreements. This positions them not only to adapt when tariffs or other shocks hit, but to attract and retain new business in the process.
From pain into power
Despite the challenges, India has a unique advantage: a growing base of skilled labor, a government committed to modernizing its textile sector, and technology partners ready to help. At BlueCherry, we’ve made significant investments in our global development and support center in Hyderabad. For Indian and Asian customers, this means access to real-time support in the same time zone, along with solutions designed to drive both efficiency and resilience.
In short, tariffs may be beyond manufacturers’ control. But productivity, data integrity, and technology adoption are not. Indian exporters who invest in these areas today will not only withstand the current tariff shock, they’ll position themselves as stronger, more reliable partners in the global supply chain.
Preparing to lead through what comes next
Tariffs are just the latest reminder that volatility is here to stay. The smartest brands and manufacturers no longer ask if the next disruption will happen. They prepare for when it does. By embracing digital transformation now, India’s apparel industry can turn today’s tariff challenge into tomorrow’s competitive advantage.
