From Tariffs to Talent: How Manufacturers and Retailers Can Cut Costs With AI
Manufacturers and retailers are feeling the strain. Tariffs, supply chain disruptions, and rising operating costs are all cutting into margins. While these challenges may be out of their control, managing employee benefits isn’t. By using technology to streamline and personalize benefits programs, companies can lower unnecessary spending, support employee well-being, and create real financial impact over time.
For businesses running on tight margins, the difference between surviving and scaling often comes down to how efficiently internal resources are managed. Yet, benefits programs, despite representing a major line item in most budgets, are rarely optimized for performance.
Legacy Benefits Are Holding Companies Back
In many companies, benefits programs are still rooted in outdated systems. Annual enrollment windows, static portals, and scattered third-party vendors are the norm. For employees, this means navigating complicated tools that don’t reflect their needs or daily realities. For employers, it results in underutilized offerings, rising claims costs, and low engagement.
This disconnect is especially an issue in frontline industries like retail and manufacturing, where employees are often on their feet, on the move, or without regular access to a desktop. When benefits are hard to find or understand, they go unused. And when benefits go unused, the company pays for programs that deliver little to no return.
A Smarter, Personalized, Accessible Approach
Technology, particularly artificial intelligence tools, are reshaping how companies deliver support to their teams. New platforms make it easier to offer centralized, personalized benefits that are mobile, intuitive, and tailored to each employee’s needs.
Think of a warehouse associate dealing with back pain or a store employee experiencing burnout. Instead of filing paperwork or calling HR, they can get instant access to wellness tools, health resources, or mental health support, all from their phone, on their schedule. That kind of convenience drives engagement, and real engagement drives measurable results.
Furthermore, with the help of AI and analytics, tech-enabled platforms can recommend benefits based on usage patterns, risk factors, or even behavioral cues. The result? Employees are more likely to use the resources that actually help them, whether that’s stress management support, fitness coaching, sleep programs, or financial wellness tools. That usage translates into better outcomes: fewer sick days, reduced healthcare claims, and higher productivity.
Supporting the Workforce While Cutting Costs
Modern benefits platforms reduce waste behind the scenes. By consolidating multiple vendors into a single platform, companies can eliminate redundancies, streamline administration, and reduce overhead. Fewer logins, fewer contracts, and clearer reporting mean HR teams spend less time troubleshooting and more time making strategic decisions. This transparency also makes it easier to see what’s working and what’s not. Companies can track engagement, monitor return on investment, and make data-driven adjustments that prevent overspending. Instead of reacting to rising benefits costs, they can proactively manage them.
There’s a misconception that better benefits mean higher costs. In reality, smarter delivery often means lower costs, especially when benefits are easier to access, more personalized, and designed to drive preventive care. For industries where turnover is high and retention is critical, benefits aren’t just a cost, they’re a differentiator. The right platform can help employees feel seen and supported, without inflating budgets. That’s a win for people and a win for the bottom line.
Building Resilience in an Uncertain Market
Tariffs will continue to fluctuate, supply chains will remain complex, and operating costs may rise before they fall. However, the companies that take control of internal inefficiencies, like bloated benefits programs, can create space for stability. Today, trimming excess spending doesn’t have to mean cutting support. It means modernizing how that support is delivered. It means giving employees tools they’ll actually use and turning a cost center into a strategic asset that fuels performance.
Manufacturers and retailers don’t have to settle for outdated systems and rising costs. By using technology to rethink how benefits are delivered and used, they can unlock real savings, empower their workforce, and gain a competitive edge, no matter what the global market throws their way.
Arthur Lane is head of marketing at Grokker, a company focused on holistic employee wellbeing.
Arthur Lane is head of marketing at Grokker, a company focused on holistic employee wellbeing. With over 20 years of experience in marketing and product development, Arthur has held leadership roles at companies including Accolade, Inc., 2nd.MD, Onlife Health, Emdeon, and Verizon Wireless. His expertise spans inclusive family benefits, mobile health solutions, and strategic marketing across various sectors.
