Navigating Tariffs: What Suppliers Can Learn from the Strategic Brilliance of 3M
- The HRG Team
- 3 days ago
- 3 min read
When the world shut down in 2020, supply chains crumbled. With a fresh wave of U.S. tariffs hitting imports from China and beyond, many suppliers are feeling déjà vu—except this time, it’s not a virus causing panic. It’s cost.
Some suppliers are scrambling. Others, like 3M, are thriving. Why? Because they didn’t just react to the last crisis—they learned from it.
In this episode of The Savvy Supplier, we spotlight how 3M built one of the most resilient supply chains in the business—and what your team can take away from their playbook to safeguard margins, mitigate risk, and make smarter sourcing decisions.
Lesson #1: Resilience > Optimization
Most companies optimized their supply chain for the lowest cost. 3M is optimized for redundancy and proximity to customers.
That means multiple sourcing points, fulfillment closer to end markets, and a willingness to walk away from the “cheapest” route if it means more vulnerability to global disruptions or multiple tariff layers along the way.
It’s not just about shaving pennies per unit. It’s about keeping inventory flowing no matter what.
What you can do: Map your SKUs against risk. Identify single-source dependencies. Build in second and third options—even if you’re not using them yet.
Lesson #2: Learn Fast, Adapt Faster
3M doesn’t just solve problems. They ask, why did this happen, and how do we make sure it never happens again?
That mindset helped them treat tariffs like they treated COVID:
Immediate cost surges
Inventory flow restrictions
Urgent shifts in sourcing strategy
In both cases, you’re suddenly cut off from key materials and penalized for trying to obtain them.
What you can do: Conduct a “tariff stress test.” What if your top supplier country suddenly hit 30% duty? What’s your Plan B?
Lesson #3: Plan for the Complex—Then Simplify
Multi-sourcing is smart, but it’s messy. Different suppliers mean different specs, timelines, quality control risks, even dye-lot variances in textiles.
3M tackled this by building strong internal processes and embracing change management at scale. That includes:
Redundant sourcing and labeling
Tight color and quality testing
Centralized change control across multiple manufacturing nodes
What you can do: Create supplier onboarding checklists. Standardize SKUs where possible. Document everything. Change equals risk—unless you systematize it.
Lesson #4: Inventory Isn’t the Enemy
Many suppliers treat inventory like a liability. 3M treats it like insurance.
Carrying 90 days of inventory gives them flexibility, whether it’s a tariff spike or a retailer pulling forward demand. Sure, it means you can’t drop the price instantly if material costs fall. But you can meet demand while others stock out or panic buy.
What you can do: Reevaluate your inventory strategy. Are you holding enough of the right items to weather short-term disruption?
Lesson #5: Culture is a Strategic Asset
Here’s what really sets 3M apart: humility.
They don’t suffer from “not-invented-here” syndrome. If there’s a better way to do things, they’ll use it—even if it wasn’t their idea. That’s why they’re one of HRG’s best partners. They actively seek best practices in deduction recovery, audit compliance, and forecasting, and they implement quickly.
What you can do: Encourage your team to question the status quo. Reward process improvement. Be the kind of company that learns fast and adapts faster.
Final Word: Be Anti-Fragile
3M didn’t know a global tariff war was coming. But they did build a supply chain that could handle one.
That’s the takeaway. Build a system that doesn’t just survive chaos, but gets stronger because of it.
In a world of rising tariffs, unpredictable retailers, and global shocks, the best suppliers aren’t just tough. They’re anti-fragile.
Take Action
Want to know how your deduction recovery and compliance strategy stacks up? HRG works with companies like 3M to stabilize margins and prepare for what’s next.
Schedule a free assessment today because resilience starts with visibility.