Tag: procurement

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Sourcing in The Food Industry: The Secret Recipe for Success

The food industry has been influenced by various trends in recent times. This calls for the players in the industry to be on their toes to watch out for these changes and adapt accordingly. If you go through the revenue data of the food industry for the past decade, you will find a noticeable decline in the profits. What could be the reason for this you wonder? Increasing competition from private label players, growing trend of value and price-conscious customers, more number of discounters in the market, etc. are some of the few reasons that have been adding salt to the already wounded profit margins in the food industry. The only way companies in the food industry can increase their profits in the existing market situation is to transform the way they specify, source, and manage the supply of raw materials, which will eventually help them to cut costs, meet the changing consumer preferences, and manage risks efficiently. So how can companies efficiently alter their sourcing strategies and gain better business efficiency? Gear up as we reveal the secret formula:IR_Brochure

Adopt Flexible Sourcing Techniques

We have seen a steep fall in commodity prices over the past few years. Therefore, it is essential for players in the food industry to formulate flexible sourcing plans to determine the cheapest and most cost-effective medium of sourcing products to widen the profit margins. A large number of food industry companies are also resorting to ‘clean-sheet cost modeling’ techniques, which allows them to build a comprehensive idea of the cost drivers of existing potential suppliers. Food industry clients can benefit from this as it will enable them to determine effective negotiation strategies that will prove to be the most cost-effective for them.

Keep an Eye on Changes Around You

Due to the extremely volatile and dynamic market conditions, food industry companies have to make a note of these three techniques to thrive in the long run:

  • Identify the different variables that affect pricing and demand.This will help businesses to improve their forecasting abilities and formulate better sourcing policies
  • Make changes in the product mix and supply chains based on the forecasts
  • Use the data from forecasting to hedge against future price fluctuations

Optimize Product Specifications

Food industry companies can leverage ‘Design-to-Value’ techniques to understand which features of their products make maximum impact on their customers. How can food retailers benefit from this you wonder? Identifying consumer tastes and preferences creates an opportunity for companies to make necessary alterations in specifications and reduce costs significantly. Companies can simultaneously increase product value by optimizing their product specifications as per customer demands.

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Market Assessment of Procurement Services for a Defense Technology Company

Procurement has been traditionally viewed as a backroom function, but its practitioners are eventually discovering the light of day. Although procurement includes platforms such as software-as-a-service and platform-as-a-service, the procurement-as-a-service platform is still in a very nascent stage. The services rendered under procurement-as-a-service comprise of business process outsourcing (BPO), KPO, supplier management, quality and auditing services, content/information services, network services, and intelligence services.

Corporate procurement services is a lucrative market which is primarily dominated by the software bigwigs like Oracle Corp. and Salesforce.com. With the rapid adoption of online purchasing platforms, corporate procurement service providers are making huge profits by providing cloud-based platforms and management services to facilitate online purchases by big organizations. Although the procurement market is quite sophisticated with the presence of numerous service offerings, it is subjected to certain challenges, for instance, finding and qualifying suppliers while meeting high-quality standards and monitoring their performance over time. Our research experts at Infiniti Research provide strategic insights to help category managers initiate spend management activities and enhance the efficiency of procure-to-pay processes.

The Business Challenge

A leading defense technology company was facing certain roadblocks in developing an effective market entry strategy for procurement services and solutions in the US. The company approached Infiniti to understand the current market and competitive landscape for procurement services, market attractiveness for client’s offerings, and identify ideal target market segments. As a part of the market assessment study, the client wanted insights into the overall procurement structure including the key projects, stakeholders, regulations for each target sector (Federal, State, and Commercial). Furthermore, the client also wanted to identify the factors that would enhance its chances of being successful in the market.

Our Research Methodology

To gain an in depth-understanding on the competitive landscape, our market assessment experts carried out exhaustive primary research comprising of 350-400 semi-structured in-depth interviews and discussions with the stakeholders such as business executives, manufacturers, buyers, purchasers, and consultants. Also, our extensive research methodology compiled information derived from the decision makers across the federal, state, municipal, and commercial sectors.

Want to learn more about Infiniti’s research methodology?

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Our Solution Helped the Client:

  • Identify market stakeholders and assess potential growth factors
  • Identify the sales opportunities and deploy go-to-market strategies
  • Identify and establish relevant contacts and primary source elicitation

Benefits of Our Integrated Approach

After a detailed analysis and comprehensive benchmarking exercise, the company obtained an in-depth understanding of the market potential. In a span of eight weeks, our market assessment team developed a specific market hypothesis and identified the potential stakeholders in the market. We helped the clients understand the competitive landscape, assess and enter new markets, benchmark their strengths, and assess customer needs and satisfaction levels.

Also, the client derived actionable insight into the key competitors, their products, regulatory timelines, and technologies employed. Moreover, the benefits offered to the clients were not only in terms of the revenue impact or analytics turnaround time but also in terms of the experience we were staging for them by exposing them to a new way of problem-solving.

A must-read case study for strategy experts and decision makers looking for effective procurement solutions.

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