Procurement Cost Reduction for Alcoholic Beverages Client

February 10, 2018

Overview of the alcoholic beverages industry

The global alcoholic beverages space is witnessing promising growth owing to the growing consumption of alcohol among the millennial population and the rising disposable income. With the altering preferences of the customers, companies in the alcoholic beverages space are redefining their product offerings to increase consumers’ perception towards the beverages. Such innovations and product development act as a catalyst to capture major shares and promote the growth of the alcoholic beverages space. Besides the conventional factors, the rise in urban population and globalization will promote the growth of the alcoholic beverages space.

Although the growing focus on tourism is fueling the growth of alcoholic beverages industry, some prominent factors that may influence the growth over the years include:

  • Fluctuating climatic conditions: Irregular climatic conditions can have an adverse impact on the crops used to produce beverages. This can have an impact on the cost of beverages, where organizations are facing pressures to offer consistency in their product offerings while maintaining the costs.
  • Increasing government regulations: Recently, governments from across the globe are imposing strict regulations on the alcoholic beverages. Also, the growing concern for health and wellness is compelling government authorities to limit the production of alcohol while maintaining the quality standards.

To identify the prominent players and reach out to the target audiences in a seamless and agile manner, prominent businesses are leveraging supplier identification and profiling solution. Supplier profiling solutions aim at profiling prominent suppliers from a pool of suppliers. Furthermore, it helps businesses reduce the procurement costs while delivering service optimization.IR_Brochure

The Business Challenge

  • The client: A prominent alcoholic beverages manufacturer

The client, a prominent alcoholic beverages manufacturer, wanted to profile the most suitable suppliers and improve the supply chain process by gaining better visibility into the operations. With the help of Infiniti’s supplier identification solution, the client wanted to deliver better quality in the products and services offered while making the most of the opportunities available. The alcoholic beverages client wanted to seek ways to deal with people, processes, and technologies and manage and control additional spend. The key challenge faced by the client was while segmenting suppliers based on spend and criticality.

IR- supplier profiling

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Our Journey

To segregate the suppliers based on purchase value, sourcing risk, and complexity, the supplier identification experts at Infiniti carried out an extensive research methodology comprising interviews and discussions with prominent stakeholders in the alcoholic beverages space. Moreover, to understand suppliers’ performance, the experts also compiled information from a wide array of reliable sources such as trade shows, paid industry databases, and industry presentations in the beverage industry.

The Solution Benefit and the Business Impact

The supplier identification and profiling solution offered by Infiniti helped the alcoholic beverages client manage supplier activities based on the criticality of the sourcing complexity. The alcoholic beverages client was able to analyze the performance of suppliers based on various metrics such as the price, quality, delivery, and service management. The solution also helped the client identify the supplier risks such as late shipments of delivery and non-conforming products. The end-users were able to benefit from the supplier profiling solution in terms of understanding the supplier’s performance based on various metrics and identifying the strengths and weaknesses of the suppliers.

The Future:

The future of alcoholic beverages will be marked by innovations in the form of packaging and labeling to improve the shelf life of the products. Moreover, technologies can promise better opportunities for the industries looking to enhance their product performance.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the alcoholic beverages industry.


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