As tariffs continue to rise, retailers face a difficult choice: absorb the increased costs or pass them on to consumers. However, Gatik, a company specializing in autonomous middle-mile logistics, believes it has a solution that can help retailers avoid raising prices while maintaining their profit margins. Founded in 2017, Gatik has quickly become a leader in the field, partnering with major retailers like Walmart, Kroger, and Tyson to optimize their supply chains with self-driving trucks.
Key Highlights
- Tariffs are increasing costs for retailers, who must decide whether to absorb these costs or pass them on to consumers.
- Gatik’s autonomous trucking solution can help retailers reduce logistics costs, allowing them to absorb tariff increases without raising prices.
- By optimizing their supply chains with autonomous trucking, retailers can maintain customer loyalty in a competitive market.
- Gatik’s technology is already being used by major retailers like Walmart, Kroger, and Tyson.
A Cost-Saving Solution
Gautam Narang, CEO and co-founder of Gatik, explains that while tariffs are beyond a retailer’s control, operational efficiency is not. “This is a moment to win trust by protecting your customers from rising prices—not just through promotions, but by eliminating the hidden costs you used to overlook,” he says.
Gatik’s autonomous trucks are designed to optimize the middle mile of the supply chain, which Narang describes as “an historically overlooked area.” By using self-driving trucks for short-haul deliveries between warehouses and stores, retailers can reduce their logistics costs by up to 30-40%. These savings can then be used to offset the increased costs from tariffs, allowing retailers to keep prices stable for consumers.
Beyond Cost Savings
The benefits of autonomous trucking extend beyond cost reduction. By improving the efficiency and reliability of their supply chains, retailers can ensure that their shelves are consistently stocked with the products consumers want. This reliability is vital for maintaining customer loyalty, particularly in a market where shoppers are increasingly price-sensitive.
“Empty shelves due to delivery delays, sudden price hikes from unoptimized routing or fuel waste, and inconsistent stock of their favorite products. These aren’t just inconveniences. They erode consumer confidence and loyalty,” Narang warns.
Gatik’s technology is already being utilized by some of the biggest names in retail, including Walmart, Kroger, and Tyson. By partnering with Gatik, these companies are able to future-proof their supply chains against unpredictable market factors like tariffs.
“In a world where you can’t negotiate lower tariffs or make better deals than your competitors, the brands that win are the ones that run leaner, faster, and smarter,” Narang says. “Every dime you save behind the scenes is a dime your customers don’t see added to the shelf.”
Bottom Line
In today’s challenging economic climate, retailers must find innovative ways to maintain their profit margins without alienating their customers. Autonomous trucking offers a promising solution, allowing retailers to reduce their logistics costs and absorb the impact of tariffs. By investing in this technology, retailers can not only protect their bottom lines but also strengthen their relationships with consumers, ensuring loyalty in a competitive market.
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