Demand and Supply Analysis for the Food Industry
The food industry in the United States is progressing at an incredible rate. However, the rapid pace of transformation has not only brought with it a new set of challenges but has also put immense pressure on food manufacturing companies to embrace new business strategies and keep tabs on the evolving market demands. In today’s competitive marketplace, companies in the food industry are also being pressurized to accurately predict, plan, and meet the evolving market demand. As a result, food companies are partnering with firms like Infiniti Research to leverage their expertise in offering demand and supply analysis solution.
The client is a food manufacturer and supplier based out of the Northwestern United States. The client’s unstructured approach to supply chain management and inventory planning resulted in huge loses for the company. Also, the company’s inability to match demand with supply impacted the company’s entire business operations. This further increased production cost for the company as they had to deal with unscheduled changeovers to meet unplanned demands. Moreover, the condition of frequent stockouts resulted in increased cost due to expedited orders. This subsequently increased the churn rate. As such, the client approached Infiniti Research for a solution.
With Infiniti’s demand and supply analysis, the client wanted to:
Reduce supply risks – The client’s inability to manage the supply and demand even affected their supplier’s business operations. At times when the demand for food products decreased, the client’s suppliers encountered financial failures. As a result, the company started losing suppliers and this subsequently impacted their production processes. Therefore, by leveraging Infiniti’s demand and supply analysis solution, they wanted to forecast the potential demand for food products in advance and reduce supply risks.
Reduce product shortage and surplus – By leveraging Infiniti’s demand and supply analysis solution, the client wanted to efficiently manage the product order and avoid surplus.
Reduce supply chain cost – With Infiniti’s demand and supply analysis, the client wanted to reduce supply chain cost by better collaborating with suppliers and customers.
Reduce wastage – The client wanted to reduce product wastages with better perishable goods management.
To help the client tackle the supply chain challenges, the experts at Infiniti Research followed a four-phased approach to demand and supply analysis.
- In the initial phase, the experts at Infiniti Research analyzed the past sales data of the client and the major food manufacturing companies in the United States. This phase of the demand and supply analysis engagement helped the client to understand the past demand patterns for products and also helped them to identify the demand fluctuations.
- The next phase of the demand and supply analysis engagement involved collaborating with major food manufacturers and suppliers to identify peak periods of demand. The experts also analyzed the client’s target customers to understand their needs and requirements.
- In the third phase of demand and supply analysis engagement, the experts at Infiniti Research gathered US market insights. The factors such as population, millennial customers, and buying patterns of customers were taken into consideration.
- The last phase of the demand and supply analysis engagement involved analyzing how the client’s competitors managed the supply chain requirements and adapted to the rapidly changing market demands.
The insights obtained from Infiniti’s demand and supply analysis solution helped the client to forecast the potential market demand for food products in the United States. Also, the client was able to understand the products with the highest demand in the market. Moreover, by thoroughly analyzing the sales report for the past five years, the client was able to understand demand patterns. This helped them to better manage their inventory activities and easily adapt to unexpected market changes.
With Infiniti’s demand and supply analysis, the client was also able to efficiently deal with their suppliers and customers. This helped the company in improving supply chain visibility and further helped them in easily managing the workforce. Furthermore, by efficiently balancing supply and demand, the client enhanced profits by 23% and realized a savings of over $4.8 million.
Importance of Demand and Supply Analysis for Food Companies
What is supply and demand analysis?
Demand and supply analysis helps businesses to accurately analyze the potential demand for a product or service. To be successful in today’s competitive marketplace, businesses need to accurately fulfill customers’ demands and adapt to market changes. Demand and supply analysis process can help businesses to do so. By leveraging demand and supply analysis, businesses can identify target stock levels to meet the rising market demand.