In today’s trade environment, relying on a single source for ingredients, such as tea extracts, has become a risky undertaking. From shifting tariffs to congested ports, the global supply chain is under constant pressure. That’s why multi-sourcing has evolved from a smart strategy to an essential one.
Trade barriers have increasingly disrupted agricultural imports, with tariffs significantly raising costs for products like tea. These duties have made tea extracts more expensive for U.S. importers, highlighting the financial impact of ongoing trade disputes. Unpredictable trade tensions have compelled companies to move away from single-source suppliers, driving a shift toward diversified supply chains to better manage cost volatility and mitigate risk.
Logistical Strain
Beyond tariffs, global logistics have been strained by challenges. The COVID-19 pandemic triggered widespread port congestion, container shortages, and supply chain bullwhips. More recently, geopolitical instability has added new layers of complexity. The Suez Canal has faced disruptions due to Houthi activity, while the Panama Canal has challenges linked to low water levels, and geopolitical relationships – raising concerns about potential delays and costs in the future. These issues have led to longer shipping times and higher freight costs, further emphasizing the need for a sourcing strategy.
The Multi-Sourcing Multiplier
Multi-sourcing offers a powerful solution. By sourcing tea extracts from multiple countries, companies can engage in tariff arbitrage – choosing suppliers based on the most favorable trade conditions. That said, there are benefits to working with a single supplier: stronger relationships, streamlined communication, and greater negotiation power.
Stronger relationships mean deeper trust, faster resolutions, and a more collaborative approach to problem-solving. Streamlined communication reduces the complexity of managing multiple contacts and ensures that updates, such as changes in lead times or shipping routes, are delivered clearly and promptly. From a customer perspective, this also translates into fewer audits, reduced quality assurance workload, and fewer internal personnel needed to manage supplier interactions. Ultimately, the key is to find a supplier that combines these advantages with a globally diversified, low-risk sourcing network, offering both resilience and simplicity.
Finlays Solutions delivers exactly that. As a single supplier, backed by a robust, multi-origin tea extract network – including sources from Kenya, China, and Chile – Finlays offers the best of both worlds: the simplicity of a single point of contact and the resilience of a globally diversified supply chain.
