Case Study: Tari Tactics Echo’s $9.8M Logistics Play: Dodging Tariffs, Delivering Savings When trade tremors hit, Echo didn’t inch. Faced with looming tariffs and rising risk, the hydrogen wellness brand moved fast—overhauling its supply chain, shifting manufacturing to the Philippines, and saving nearly $10 million in one year. Here’s a rsthand account of how smart logistics made it possible. By Josh Carr, CEO, Echo
scalable capacity and multi-modal access. This move wasn’t plug-and-play. We invested heavily in identifying freight for- warders, auditing packaging tolerances for long-haul ocean shipping, and adapt- ing our just-in-time models to new lead times. But the foundation was solid— and we built fast. REBUILDING OUR FULFILLMENT BACKBONE Switching manufacturers also meant rebuilding the backbone of our entire logistics chain. Here’s how we approached it: New freight contracts. We negotiated directly with shipping partners to lock in container capacity from key ports in Subic and Manila to West Coast U.S. hubs, stabilizing rates and transit times during an unstable pricing window. Inventory buers in strategic warehouses. While our historical model favored lean inventory, we temporarily introduced buffer stock in California and Utah to absorb any timing inconsistencies during the transition. 3PL collaboration. We onboarded a third-party logistics partner in the Philippines to provide local oversight, coordinate outbound freight, and improve real-time visibility into shipments. Redundant packaging testing. Hydrogen-infused products are sensitive to altitude and heat. We ran packaging integrity tests on every container con guration to prevent loss or quality degradation in transit.
In a global economy de ned by volatility, logistics is the frontline of risk. That was the reality Echo Water faced in 2024, as early signs of sweeping tariffs on Chinese imports forced us to confront the vulnerabilities in our supply chain. At the time, our manufacturing footprint was concentrated in China—highly ef cient, but deeply exposed to shifting policy winds. Rather than wait for fallout, we made the call to relocate most of our production to the Philippines. It was a move that required logistical overhaul— new partners, new lanes, new customs frameworks—but the outcome was clear: we preserved operational continuity, prevented cost pass-throughs to our customers, and saved $9.8 million in the rst year alone. This article is a roadmap for logistics professionals facing global disruptions and tasked with making their network more agile and future-proof. READING THE TRADE SIGNALS AND MOVING EARLY Echo produces hydrogen-infused water products and wellness tools such as the Echo Flask, which require precise materials, regulated shipping conditions, and high consumer trust. For years, we relied on China for its robust manufacturing infrastructure. But in Q2 of 2024, predictive modeling showed an incoming 35–45% cost increase on key SKUs if tariffs materialized. We didn’t wait for the policy to be enacted. We immediately began scenario planning, identifying alternate
production sites and sketching what a re-routed logistics framework could look like. WHY THE PHILIPPINES WORKED After evaluating Vietnam, Malaysia, and Mexico, we chose the Philippines based on three core logistics criteria: 1. Port access and trade routes. The Philippines offers strong maritime connectivity and favorable duty status with the United States, allowing for smoother transitions through Paci c trade lanes. 2. Customs and regulatory infrastructure. Our logistics partners reported reliable export/import processing times, which would keep Echo’s ful llment windows intact. 3. Localized production with global reach. The Philippines provided a growing ecosystem of plastics, electronics, and packaging vendors with
172 Inbound Logistics • July 2025
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