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Proactive alternative supplier identification is the key to staying ahead of tariffs

Tariffs Are the New Normal — But Your Costs Don’t Have to Be

Keith Reinbolt
Keith Reinbolt |
Tariffs Are the New Normal — But Your Costs Don’t Have to Be
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Why procurement leaders must adopt always-on, AI-powered sourcing strategies 

With the U.S. granting a 90-day tariff reprieve to 15 countries, many global supply chains are shifting to take advantage of this temporary relief. But China—still one of the largest manufacturing hubs—isn’t on that list, leaving many companies exposed to rising costs from reinstated duties and exclusions.

So here’s the question:

If your company had a two-country sourcing strategy, how much could you have saved this quarter? Answer: Potentially 100% of your tariff exposure.

Tariffs Aren’t a Blip—They’re the Blueprint

The latest Trump tax proposal—promising a 10% baseline tariff on all imports—isn’t just another short-term disruption. It signals a long-term shift toward trade protectionism. Tariffs have become a permanent fixture of economic policy, and companies relying on single-region sourcing strategies are increasingly at risk.

More than 70% of companies that experienced tariff-related cost increases in 2024 had no alternative sourcing plan in place. That’s not just costly—it’s avoidable.

We explored this growing reality in our blog: What the Trump Tax Means for Procurement & Supply Chains.

From tariffs to ESG requirements to regional conflict, disruption is constant. The most resilient supply chains are no longer reactive—they’re built to absorb shocks.

Procurement Pioneers Are Already Winning

“Pioneers using always-on procurement] pay 21% lower prices during disruptions than their peers.”
— The Hackett Group, 2023

Companies that invested early in supply chain continuity—building supplier visibility and agility—are outperforming peers.

In our post, Three Ways AI-Powered Software Can Improve Your Supply Resilience, we share how top teams use AI to prepare—not panic—when policy or market conditions change overnight.

AI Is Making Always-On Sourcing a Reality

Traditionally, identifying and qualifying alternative suppliers took weeks of manual research. Now, it takes hours—or even minutes.

Scoutbee’s AI-powered sourcing platform automates supplier discovery, data collection, and vetting, giving procurement teams a real-time edge without adding headcount.

With Scoutbee, you can:

  • Identify trusted, compliant suppliers in low-risk regions
  • Filter by certifications, ESG scores, manufacturing capabilities, and delivery geography
  • Reach out anonymously and manage all supplier engagement in one platform
  • Maintain a living pipeline of qualified suppliers across every category

Check out the full breakdown in Behind the Scenes of AI at Scoutbee.

Why Multi-Sourcing Matters Now More Than Ever

Let’s say your company sources a critical component exclusively from China. You’re now fully exposed to new rounds of Trump’s tariffs, with few options to mitigate cost.

But if you had already onboarded vetted suppliers in Vietnam, Mexico, or another low-risk region? You could have pivoted production quickly, preserved margin, and maintained delivery timelines.

Procurement leaders call that resilience. Finance teams call it savings. 

At Scoutbee, we call it "Always-On" Procurement.

The Hidden Cost of Doing Nothing

Organizations that stick with a reactive sourcing approach are exposing themselves to:

  • Unplanned margin loss from tariff hikes
  • Low-quality or non-compliant suppliers sourced under pressure
  • Weeks of delay finding and qualifying credible alternatives
  • Brand reputation damage due to late deliveries or cost increases

We dig into this further in Efficiency or Resilience in Your Supply Chain? - where we explore how leading companies balance short-term savings with long-term strength.

Don’t Let Your Tariff Strategy Be a Panic Button

Instead, let it be a playbook. More procurement teams at global FMCG, retail, and manufacturing companies are investing in AI-powered multi-sourcing to stay ahead of policy changes, supplier disruptions, and fluctuating costs.

Let’s Build a Resilient Supply Chain—Together

Tariffs will keep shifting. Risk will stay. Now is the time to future-proof your sourcing strategy with the tools that let you adapt instantly.

Schedule a free demo to see how Scoutbee helps you discover, qualify, and connect with the right suppliers—before you need them.

 

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