SMBs Embrace AI Innovations Amid Tariff Challenges in 2025

SMBs Face Tariff Challenges While Embracing AI in Supply Chains

BOSTON — Netstock, a leading provider of AI-powered supply chain planning software for small and medium-sized businesses (SMBs), released an insightful Benchmark Report highlighting the trends shaping supply chain planning. This report is based on surveys and anonymous data from a diverse array of SMBs crossing over 15 industries globally. It vividly illustrates the dual nature of the market: one a landscape fraught with tariffs and uncertainty, and the other a thriving realm where innovative strategies and advanced technologies pave the way towards resilience.

Understanding the Impact of Tariffs

Tariffs have undeniably posed significant challenges, prompting SMBs to rethink traditional approaches to their operations. Instead of retreating, these businesses displayed remarkable agility. Many opted to adopt dynamic supplier strategies, enhance their inventory planning, and even maintain product launches despite external pressures. In essence, tariffs have acted as a catalyst for transformation, pushing SMBs to explore new methodologies and tools to ensure continued growth.

Resilience Through Innovation

“Resilience in 2025 has been defined by agility,” stated Ara Ohanian, CEO of Netstock. He pointed out that nearly half of the businesses maintained service levels exceeding 90%, and a staggering 93% expanded their product offerings, showcasing their determination even amid adversity. This resilience is rooted in a willingness to quickly adapt, consider innovative strategies, and rely on smarter supply chain processes.

Key Findings from the 2025 Benchmark Report

The report reveals several key insights that highlight how SMBs are navigating challenges and leveraging new technologies:

• Operational Impact of Tariffs: Around 63% of SMBs reported direct effects from tariffs, with 44% choosing to absorb additional costs rather than risk losing customers or encountering stockouts.
• Adapting Supplier Strategies: While nearly half of SMBs still lack formal rate-locking tactics, reliance on long-term contracts has significantly decreased from 47% to 36%.
• Enhanced Collaboration: The percentage of businesses using vendor-managed inventory has seen a rise from 29% to 44%, indicating a growing preference for collaborative inventory management methods.
• Strategic Use of Excess Inventory: 30% of SMBs now view part of their excess inventory as a strategic buffer against unforeseen disruptions, although 17% report having more than 10% of their inventory unsold for over a year.
• Strong Performance During Turbulence: Service level achievement has improved, with 46% of SMBs hitting above 90% service levels, an increase from the previous year, coupled with 93% launching new or expanded products.
• AI Adoption on the Rise: There has been a remarkable uptick in AI utilization, with 48% of SMBs implementing AI solutions, and almost 49% planning further investments in the technology for 2026.

Leveraging AI for Competitive Advantage

According to Jefferson Barr, CMO of Netstock, SMBs are utilizing strategies that were traditionally exclusive to larger enterprises. AI is at the heart of this evolution. The report's revelation that AI adoption has nearly doubled is particularly significant. Today’s SMBs don’t merely embrace AI; they are integrating it into every facet of their strategic planning and execution to cope with inherent volatility in the market.

Conclusion: A Resilient Future for SMBs

Despite the various challenges encountered, SMBs are demonstrating their capacity for adaptability and innovation. By prioritizing intelligent planning and welcoming AI into their supply chain operations, they are crafting a resilient path forward. The findings from the Netstock 2025 Benchmark Report reveal a sector that, rather than retreating in the face of adversity, boldly embraces change to remain competitive on a global scale.

Frequently Asked Questions

What does the Netstock 2025 Benchmark Report focus on?

The report highlights trends in supply chain planning, AI adoption, and the impact of tariffs on SMBs.

How have tariffs affected SMBs?

Many SMBs reported operational challenges due to tariffs, yet they adapted by employing innovative strategies and technologies.

What percentage of SMBs is using AI?

Currently, 48% of SMBs are utilizing AI in their operations, signaling a significant increase from previous years.

What is the future outlook for SMBs based on the report?

The report suggests a resilient future, with SMBs leveraging new technologies to enhance their operations and maintain competitiveness.

How can Netstock help businesses?

Netstock offers AI-driven solutions to optimize inventory management, enhance forecasting accuracy, and streamline supply chain operations for SMBs.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

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