If the latest round of tariff news has your team on edge, you’re not alone. Across industries, innovation and sourcing leaders are feeling a familiar pressure—not from a pandemic this time, but from rapidly changing trade policies that threaten to disrupt supply chains once again.
According to a recent article by CNN, businesses are making difficult choices without much time to prepare: continue selling products from China at more than double their previous prices or stop selling those products altogether.
yet2 has been deeply involved in contract manufacturing scouting since the pandemic in 2020. In the process, we’ve built a proprietary network of over 5,000 vetted CMOs and toll manufacturers, so we understand the supply chain landscape.
Here are four insights from our recent work that can help your team stay ahead of these changes:
- Geography Matters More Than Ever
Many companies mistakenly assume that one partner can meet global needs. But when tariffs disrupt supply across regions, it becomes essential to reevaluate import/export costs and supply chain logistics to remain competitive. At yet2, we leverage our global resources and network—teams in Europe, the UK, APAC, and boots on the ground in Mexico—to help you quickly identify cost-effective manufacturing and distribution partners in your region that meet your criteria.
- Don’t Rush the NDA When Vetting Suppliers
Avoid signing NDAs too early when engaging potential manufacturing partners. It’s important to evaluate a range of CMO options before entering formal due diligence. Premature NDAs can limit your flexibility and lock you into conversations before confirming strategic fit.
- Always Have Backup Partners—Confidentially
Even if you already work with a preferred CMO, it’s crucial to have contingency partners in place—especially in a volatile trade environment. What if you want to keep this hidden from your current supplier? We conduct anonymous outreach to identify and evaluate viable alternatives, without alerting your current supplier. Our scouting goes beyond surface-level research—we engage directly and confidentially to pressure-test capabilities, capacity, and fit. This has been a key part of our process for over five years.
- Small-Batch CMOs Are Key to Agile Innovation
Demand is growing for CMOs who can support low-minimum order quantities (e.g., 5,000 units). These small production runs enable market testing without major upfront commitments.
yet2 helps clients find flexible partners—especially small-batch CMOs in regions like Latin America—who can provide both manufacturing and local market insights. These partners enable in-market R&D, rapid prototyping, and regional launches, helping companies move faster and smarter without overcommitting to high-volume production too soon.
yet2’s CMO Network: Your On-Demand Resource
According to CNN’s recent article, the countdown to shortages and higher prices has already begun, and we’ll start seeing the impact as soon as next week. When asked about the growing need to shift suppliers, Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation, is featured saying “It takes time, months if not years, to establish these new relationships. To make sure that the new suppliers…have got the capacity, they’ve got skilled workforce, they’ve got the right infrastructure. All the testing requirements that need to be done for products coming to the US, especially for children’s products.” “It’s not something that can happen overnight.”
Thankfully, we’ve spent years building a robust, geographically tagged network of CMOs and suppliers that you can immediately tap into and work with. Our approach, a blend of open innovation, tech scouting, and direct interviews, is designed to help clients like you shift sourcing strategies without losing speed or innovation momentum. Whether you need a formulation partner, material supplier, or scale-up resource, we can help.
Explore more on CMOs from our blog archive:
- What is a CMO?
- Unlocking Success in the Complex World of Contract Manufacturing
- Harnessing Innovation: The Power of a Proprietary Database
Ready to Future-Proof Your Supply Chain?
Now is a critical time to evaluate your supplier network—not just for risk mitigation, but to maintain innovation continuity amid changing regulations and tariffs. A quick conversation with us could save your team months of stress and uncertainty.
Words by Emily Smith
Image by Freepik
