Predictika · sourcing and pricing actions that respond to tariffs

An AI agent's tariff response, checked against price, landed cost, supplier, lead time, contract and margin before it is pushed

When tariffs change, a manufacturer has to decide again and again where to buy each part, at what price, and how much of the cost to pass on to the customer. An AI tariff-response agent can propose those changes and push them to purchasing and pricing, but every change touches several rules at once: the negotiated price, the landed cost with the right duty, the supplier's qualification, the lead time, the customer contract, the margin and the mix of countries. Before a change is pushed, the agent sends it to Predictika, which checks it against a declarative model of those rules and returns a verdict, every reason, and the figures it computed, including the landed cost. The manufacturer, suppliers, duty rates, lead times and limits on this page are fictional and illustrative, not current law or any tariff schedule.

Scope: One sourcing change for one part — supplier, quoted price, landed cost, qualification, lead time, customer pass-through, margin, order value and country mix. See everything this validator covers

This validator checks a sourcing change that an AI agent has proposed for one part: an order with a supplier at a quoted price, and optionally a surcharge to pass part of the tariff cost to the customer. It does not find suppliers, look up tariffs or place orders by itself: the manufacturer's own systems supply the supplier record, the negotiated ceiling price, the customer contract, the freight quote, the date the parts are needed and the share of volume by country, and the validator checks the proposal against them and computes the duty and the landed cost.

  • Price — the quoted price may not be above the ceiling negotiated for the part.
  • Landed cost — the landed cost the agent states is compared with the landed cost the validator computes from the quoted price, the base duty for the part, the additional duty for the supplier's country and freight; more than 1 percent apart is blocked.
  • Supplier qualification — a supplier that is not qualified for the part is blocked; a conditionally qualified supplier goes to a quality director.
  • Lead time — production time plus transit must fit the number of days before the parts are needed.
  • Margin and loss — the landed cost is set against the price the customer pays, including any pass-through; a loss is blocked, and a margin under the part's floor goes to a finance director.
  • Pass-through — a surcharge to the customer needs a tariff clause in the contract and may not exceed the contract's cap; more than 3 percent needs a finance director.
  • Order value — an order above $750,000 needs the VP of procurement.
  • Country mix — more than 40 percent of a part's volume from one country needs the VP of supply chain.

Any sourcing change involving these checks is in scope — other parts, suppliers, countries and amounts, not only the scenarios pictured here. Not covered: finding suppliers, classifying parts, tariff lookup, drawback and exclusion programs, and the purchase order itself. Duty rates, additional duties, lead times and limits are modeled and illustrative; real rates change often and in a deployment would come from the manufacturer's tariff feed. This is not legal or customs advice.

The AI tariff-response agentProposes a sourcing change in response to a tariff and says it is ready to push to purchasing and pricing.
Predictika validatorChecks every rule at once and returns the verdict, each finding, and the computed figures.

6 scenarios in 2 groups · each group runs from the agent’s first attempt to the outcome · click one to switch

What the agent proposes

The AI tariff-response agent says

Illustrative agent statement. The validator receives the structured request below.

Proposing agent: AI tariff-response agent (scripted)

Before sending, the agent must call Recorded run

Predictika validator


      

        
        
        
      

      
Waiting for the call.

      
    

  

  
  

    
Where a tariff spreadsheet or an approval workflow alone gets it wrong
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Our assessment of what a tariff spreadsheet, or a purchasing approval workflow that routes by amount, does with the same cases. It is a judgment about what such tools are built for, not a claim that nothing can be built around them.

    
What the validator caughtSpreadsheet or approval workflow alonePredictika
Landed cost stated without the additional dutyOnly with workarounds
Landed cost needs the base duty for the part, the additional duty for the supplier's country, freight and the quantity. A spreadsheet can hold the formula, but each rate has to be kept current by hand, and nothing compares the result with the figure an agent states.		The validator computes the landed cost from the quote, the supplier's country and freight, compares it with the figure the agent stated, and shows both.
A pass-through the customer contract does not allowOnly with workarounds
Whether a surcharge is allowed, and how much, sits in the customer contract, not in the sourcing or pricing system. Checking it means someone reading the contract for each change.		The clause and the cap are inputs from the contract record; the validator blocks a pass-through with no clause or above the cap.
A fix that creates the next problemOnly when someone is vigilant
Dropping a surcharge the contract does not allow lowers the price the customer pays, which can push the margin under the floor. Rules checked one at a time, in separate systems, find it only on the next pass.		The margin is computed on the price after any pass-through, so the validator returns it with the other findings in the same call.
A price above the negotiated ceilingOnly when someone is vigilant
A purchasing system accepts the price the supplier quotes; the ceiling lives in the contract. The gap shows only if someone sets one against the other.		The ceiling is an input; the validator compares the two and shows both amounts.
Overreliance on one country for a partOnly with workarounds
Concentration depends on the volume already sourced from the country plus this change, which no single order record holds.		The share after the change is an input from planning; the validator escalates anything above 40 percent to the VP of supply chain.
Approvals that depend on which findings fired togetherOnly with workarounds
Routing by amount is routine. Here the approver depends on the combination: a director for margin, pass-through or a conditional supplier, a VP for country mix or order value.		The validator lists every item that needs approval, works out the highest level required, and releases the change only when the approval on record covers all of them.
Every problem returned in one answerOnly with workarounds
A workflow or a single reject reason tends to stop at the first problem, so the agent retries and meets the next one.		All findings come back together, blocks first, then approvals, with the figures computed.

  

  

    
What this validator catches: findings from its test cases
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Every rule is checked on every call, in any order the choices arrive; one problem never hides another. Blocking findings stop the change; approval findings need a person to sign off; everything else is computed.

    
1The supplier quote of $39 a unit is above the $38 a unit ceiling negotiated for motor controller boards. The price cannot be pushed to production.
2The agent states a landed cost of $102 a unit, but the landed cost computed from the quoted price, the duty on goods made in Mexico and freight is $100 a unit. The difference is $2.
3Sierra Madre Componentes is only conditionally qualified to supply motor controller boards. A quality director must approve the order.
4Sierra Madre Componentes is not qualified to supply motor controller boards. No order can be placed until it passes qualification.
5Sierra Madre Componentes needs 30 days to produce and 5 days in transit, 35 days in all, but production needs the parts in 34 days.
6With duty and freight the landed cost of motor controller boards is $38 a unit. Against the $38 a unit the customer pays, that leaves a 0 percent margin, below the 22 percent floor. A finance director must approve.
7The landed cost of $38 a unit is above the $37 a unit the customer would pay, so every unit would be sold at a loss.
8The proposed pass-through of 4 percent is above the 3 percent that can be sent without approval. A finance director must approve it.
9The proposed pass-through of 6 percent is above the 5 percent cap in the customer contract.
10The agent proposes passing 4 percent of the tariff cost to the customer, but the customer contract has no tariff surcharge clause.
11The order value of $750,050 is above the $750,000 an agent may place on its own. The VP of procurement must approve it.
12After this change 41 percent of the volume of motor controller boards would come from Mexico, above the 40 percent limit for one country. The VP of supply chain must approve it.

  

  

    
Scenarios and results
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The recorded result of the validator for each scenario on this page: the request the AI agent sent, the verdict, and every finding, in the order they appear above.

    
1. Battery packs from Vietnam: A sourcing change for 10,000 lithium battery packs from the supplier in Vietnam, with a surcharge to the customer

    
The agent's request. Please place an order for 10,000 lithium battery packs with Lanh Precision Electronics (Vietnam) at $61 a unit. The landed cost is $65 a unit, and we will pass 6 percent of the tariff cost on to the customer as a surcharge. It is ready to push.

    
Verdict: Blocked.

    
    
      
  • Quoted price is above the negotiated ceiling. The supplier quote of $61 a unit is above the $58 a unit ceiling negotiated for lithium battery packs. The price cannot be pushed to production.
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  • Landed cost stated does not match the landed cost computed. The agent states a landed cost of $65 a unit, but the landed cost computed from the quoted price, the duty on goods made in Vietnam and freight is $71 a unit. The difference is $6.
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  • Pass-through proposed without a tariff clause. The agent proposes passing 6 percent of the tariff cost to the customer, but the customer contract has no tariff surcharge clause.
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  • Margin falls below the floor. With duty and freight the landed cost of lithium battery packs is $71 a unit. Against the $86 a unit the customer pays, that leaves a 17 percent margin, below the 20 percent floor. A finance director must approve.
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  • Supplier is only conditionally qualified. Lanh Precision Electronics is only conditionally qualified to supply lithium battery packs. A quality director must approve the order.
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  • Pass-through above what can be sent without approval. The proposed pass-through of 6 percent is above the 3 percent that can be sent without approval. A finance director must approve it.
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  • Too much of the part from one country. After this change 55 percent of the volume of lithium battery packs would come from Vietnam, above the 40 percent limit for one country. The VP of supply chain must approve it.
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2. Battery packs from Vietnam: The agent resubmits after fixing the errors

    
The agent's request. Please place an order for 10,000 lithium battery packs with Lanh Precision Electronics (Vietnam) at $57 a unit. The landed cost is $67 a unit, and we will pass 6 percent of the tariff cost on to the customer as a surcharge. It is ready to push.

    
Verdict: Blocked.

    
    
      
  • Pass-through proposed without a tariff clause. The agent proposes passing 6 percent of the tariff cost to the customer, but the customer contract has no tariff surcharge clause.
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  • Supplier is only conditionally qualified. Lanh Precision Electronics is only conditionally qualified to supply lithium battery packs. A quality director must approve the order.
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  • Pass-through above what can be sent without approval. The proposed pass-through of 6 percent is above the 3 percent that can be sent without approval. A finance director must approve it.
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  • Too much of the part from one country. After this change 55 percent of the volume of lithium battery packs would come from Vietnam, above the 40 percent limit for one country. The VP of supply chain must approve it.
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3. Battery packs from Vietnam: The agent resubmits after fixing the errors

    
The agent's request. Please place an order for 10,000 lithium battery packs with Lanh Precision Electronics (Vietnam) at $57 a unit. The landed cost is $67 a unit. It is ready to push.

    
Verdict: Needs approval.

    
    
      
  • Margin falls below the floor. With duty and freight the landed cost of lithium battery packs is $67 a unit. Against the $82 a unit the customer pays, that leaves a 18 percent margin, below the 20 percent floor. A finance director must approve.
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  • Supplier is only conditionally qualified. Lanh Precision Electronics is only conditionally qualified to supply lithium battery packs. A quality director must approve the order.
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  • Too much of the part from one country. After this change 55 percent of the volume of lithium battery packs would come from Vietnam, above the 40 percent limit for one country. The VP of supply chain must approve it.
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4. Battery packs from Vietnam: A vice president approves the order

    
The agent's request. Please place an order for 10,000 lithium battery packs with Lanh Precision Electronics (Vietnam) at $57 a unit. The landed cost is $67 a unit. It is ready to push.

    
Verdict: Allowed.

    
    
      
  • Margin falls below the floor. With duty and freight the landed cost of lithium battery packs is $67 a unit. Against the $82 a unit the customer pays, that leaves a 18 percent margin, below the 20 percent floor. A finance director must approve.
    • 
      
  • Supplier is only conditionally qualified. Lanh Precision Electronics is only conditionally qualified to supply lithium battery packs. A quality director must approve the order.
    • 
      
  • Too much of the part from one country. After this change 55 percent of the volume of lithium battery packs would come from Vietnam, above the 40 percent limit for one country. The VP of supply chain must approve it.
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5. Wire harnesses from India: A sourcing change for 20,000 wire harness assemblies from the supplier in India

    
The agent's request. Please place an order for 20,000 wire harness assemblies with Pallava Power Systems (India) at $14 a unit. The landed cost is $17 a unit. It is ready to push.

    
Verdict: Blocked.

    
    
      
  • Supplier is not qualified for the part. Pallava Power Systems is not qualified to supply wire harness assemblies. No order can be placed until it passes qualification.
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  • Supply cannot arrive in time. Pallava Power Systems needs 42 days to produce and 35 days in transit, 77 days in all, but production needs the parts in 60 days.
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6. Wire harnesses from India: The agent resubmits after fixing the errors

    
The agent's request. Please place an order for 20,000 wire harness assemblies with Sierra Madre Componentes (Mexico) at $15 a unit. The landed cost is $16 a unit. It is ready to push.

    
Verdict: Allowed.

  

  

    
Narration transcript
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The text of the narrated walkthrough, step by step.

    
    
      
  1. Welcome to a demo of Predictika's Validator. When tariffs change, a manufacturer has to decide again and again where to buy each part, at what price, and how much of the cost to pass on to the customer. An AI tariff-response agent can propose those changes and push them to purchasing and pricing, but every change touches several rules at once: the negotiated price, the landed cost with the right duty, the supplier's qualification, the lead time, the customer contract, the margin and the mix of countries. Before a change is pushed, the agent sends it to Predictika, which checks it against a declarative model of those rules and returns a verdict, every reason, and the figures it computed, including the landed cost. The manufacturer, suppliers, duty rates, lead times and limits on this page are fictional and illustrative, not current law or any tariff schedule.
    2. 
      
  2. I will start with the first request by the agent.
    3. 
      
  3. The agent says. Please place an order for 10,000 lithium battery packs with Lanh Precision Electronics (Vietnam) at $61 a unit. The landed cost is $65 a unit, and we will pass 6 percent of the tariff cost on to the customer as a surcharge. The rest of the request is on screen.
    4. 
      
  4. Before it goes out, the agent calls the validator.
    5. 
      
  5. Blocked, with three findings and four approvals, all in one answer. The supplier quote of $61 a unit is above the $58 a unit ceiling negotiated for lithium battery packs. The price cannot be pushed to production. The agent states a landed cost of $65 a unit, but the landed cost computed from the quoted price, the duty on goods made in Vietnam and freight is $71 a unit. The difference is $6. The agent proposes passing 6 percent of the tariff cost to the customer, but the customer contract has no tariff surcharge clause.
    6. 
      
  6. The validator returned three blocking findings and four approvals in one answer. A check that reads one field at a time would pass most of this; it shows only when the choices in the change are checked against each other.
    7. 
      
  7. What this shows: for landed cost stated without the additional duty, a spreadsheet or approval workflow alone can do this only with workarounds.
    8. 
      
  8. Now the agent resubmits.
    9. 
      
  9. The corrected request. It changes the quoted price per unit to $57 and the landed cost stated per unit to $67.
    10. 
      
  10. It calls the validator again.
    11. 
      
  11. Still blocked, with one finding and three approvals, all in one answer. The agent proposes passing 6 percent of the tariff cost to the customer, but the customer contract has no tariff surcharge clause.
    12. 
      
  12. Three findings cleared. Still blocking: pass-through proposed without a tariff clause. Three approvals also remain for a person: supplier is only conditionally qualified, pass-through above what can be sent without approval and too much of the part from one country.
    13. 
      
  13. The agent resubmits once more.
    14. 
      
  14. The revised request. It changes the tariff pass-through proposed to none.
    15. 
      
  15. It calls the validator once more.
    16. 
      
  16. Not blocked, but held for a person.
    17. 
      
  17. The validator also returns the line-item quote. It starts with Lithium battery packs from Lanh Precision Electronics and Import duty at 13 percent; the other line is on screen.
    18. 
      
  18. The one blocking finding is cleared; three approvals remain for a person: margin falls below the floor, supplier is only conditionally qualified and too much of the part from one country.
    19. 
      
  19. The agent resubmits again.
    20. 
      
  20. The next revised request. It sets the approval on record to a vice president.
    21. 
      
  21. It calls the validator yet again.
    22. 
      
  22. This time the validator clears it.
    23. 
      
  23. The validator also returns the line-item quote. It starts with Lithium battery packs from Lanh Precision Electronics and Import duty at 13 percent; the other line is on screen.
    24. 
      
  24. All three earlier findings are cleared, and the validator's total, $67, matches the change.
    25. 
      
  25. Seven problems caught in one call, fixed in three passes, and a clean change. That is the value of Predictika's validator: catching mistakes before they reach production. Now you can try the other scenarios yourself.
    26.