Supply chain transformation: A strategic imperative in the botanical space

Retailers are scrambling around supply chain problems to have enough holiday merchandise this year – Copyright AFP ABBAS MOMANI

Botanicals have an expanding role in food and medicine, and the popularity of botanicals as alternatives to synthetic pharmaceuticals is typified by the growth of the secondary health sector. This includes those who are seeking out different remedies to treat longstanding health complaints.

According to Gareth Clark, Sales Director at ACI Group: “As demand for these natural treasures grows, so does the complexity of sourcing them. In today’s fast-paced and volatile business world, supply chains have evolved into more than just logistical functions.”

It is time, notes Clark, for all companies to increase their understanding if their supply chains. This is for a number of reasons, which Clark sets out: “Companies that understand this transformation are not merely navigating challenges; they view their supply chains as strategic assets to drive growth, outpace competitors, and make competitive gains.”

This represents a shift in thinking and planning from how supply chain shave been viewed and treated in the past.

The currency of competitive advantage

Clark has observed: “Historically, supply chains were seen as cost centres, functions to optimise, streamline, and keep behind the scenes. Today, they have emerged as the new currency of competitive advantage for high-performing organisations that view their supply chains not as burdens to be managed but as enablers of growth and innovation.”

Supply chains need to be robust and sufficiently flexible in order to maintain business operations. Clark expresses this: “Sourcing is no longer just about securing materials at the lowest price; it’s about creating resilience, anticipating market demands, and fostering deep, sustainable relationships with suppliers.”

In terms of enacting this philosophy, Clark recommends: “Adopting agile sourcing practices, prioritising long-term supplier partnerships, and driving operational efficiency can transform supply chains into growth, profitability, and market differentiation engines.”

With botanicals specifically, Clark identifies: “This is particularly crucial in sectors that rely on botanicals, such as nutraceuticals, food, and cosmetics, where sourcing is complex and often unpredictable. The plant-based ingredient sector is booming, driven by a growing consumer appetite for natural, clean-label products.”

Consumer demand is not without supply complexities: “Yet, sourcing high-quality botanicals has become increasingly challenging due to factors like climate change, geopolitical instability, and the threat of adulteration.”

Rethinking the approach

Hence, new approaches are required for companies active in this sector: “Traditional sourcing models cannot meet the evolving demands of today’s market. Incremental innovation or expanding into new regions may have worked previously, but companies must now rethink how they approach their supply chains, especially when sourcing high-quality botanicals.”

To do show, supply chains need to be reconceptualised and remapped: “Supply chains are more like webs; intricate, interconnected systems influenced by any number of external factors. Botanical sourcing is an excellent case study of the complexity of modern supply chains. Botanicals used in nutraceuticals, for example, are subject to the forces of climate variability, crop yields, and supply-and-demand dynamics, all of which can vary dramatically year after year. These factors add layers of complexity, making it more difficult to forecast and plan effectively.”

Sustainable botanical sourcing

Recounting this company’s own approach to these factors, Clark summarises his strategy: “At ACI Group, we recognise that mastering the art of strategic sourcing is paramount to thriving in this environment. Through our partnership with Orcas Naturals, a leader in sustainable botanical sourcing, we’ve built a robust and reliable supply chain that meets the surging demand for botanicals and ensures we consistently deliver high-quality ingredients. This collaboration enables us to address key challenges in the botanical sourcing space.”

Even a soundly planned strategy was not without its challenges, as Clark recollects: “Perhaps the most significant challenge is the issue of adulteration, where low-quality or diluted ingredients flood the market. For businesses in the nutraceutical sector, this presents not just a risk to product integrity but a direct threat to brand reputation.”

In terms of risks, Clark notes: “Companies that fail to uphold the highest quality standards risk undermining consumer trust. However, by implementing robust quality assurance processes, businesses can mitigate the risk of adulteration and ensure that their botanicals meet the highest purity and potency standards. A forward-thinking sourcing strategy is essential to overcoming these challenges.”

Rebalancing and increasing resilience

So, how might resilience be strengthened? Clark thinks: “Companies must balance the need for cost-effective, commoditised botanicals with the demand for premium ingredients backed by scientific validation. Orcas Naturals’ commitment to transparency includes clear identification of solvents or agents used in processing and offering clean-label products that resonate with consumer demands.”

In summary, Clark states: “By ensuring that every ingredient is rigorously tested and validated, companies can meet market demands, reduce risks, and accelerate time-to-market, all while maintaining the integrity of their products.”