Tag: sourcing intelligence

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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 Analysis and Sourcing Intelligence Helps an Industrial Equipment Manufacturing Company

Steel, as an alloy, finds extensive applications across various industries. Owing to properties such as toughness, resistance to wear, durability, and recyclability, steel is widely used in the cutting tools segment. However, with the extensive use of steel across end-user segments, manufacturers are gradually shifting to the use of compounds that promise robust strength and versatility. Carbide owing to its vulnerability to extreme heating conditions is preferred as an alternative to steel across various industrial applications.

Although carbide tools are more expensive than premium steel tools, they prove to be highly durable in the long run. Moreover, carbide is preferred over steel as the compound delivers better surface finish when cutting. While carbide is mainly employed in large-scale industries that focus on quality, steel is the preferred alloy in industries that look for cost-effective and seamless operations. Infiniti’s experienced market intelligence experts provide the client with a holistic overview of the market and competitive landscape of the steel and carbide industry to help make strategic business decisions.

The Business Challenge

An industrial equipment manufacturer based out of Sweden was facing challenges understanding the market landscape for steel and carbide in terms of the competitors, the key customers, and suppliers and distributors. Through this market intelligence study, the client wanted to identify the cost drivers and the risk elements associated with the market for the target regions.

Our Research Methodology

To gain strategic insights into the competitive landscape, our market intelligence experts at Infiniti carried out in-depth interviews and discussions with leading industrial experts such as business executives, analysts, and members of trade association. Our data collection methodology also compiled information from proprietary resources including company publications, case studies, and industry forums.

Want to learn more about Infiniti’s research methodology?

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Our Solution Helped the Client

  • Identify the key suppliers of steel and carbide materials in the target regions
  • Assess the market opportunities and increase offerings in the market
  • Identify the potential competitors and devise new marketing strategies
  • Benchmarking sourcing strategies that help in driving bottom-line savings
  • Identify the cost drivers and risk elements for specific regions

Benefits of Our Integrated Approach

After a detailed analysis of the market landscape, the client gained strategic insights on the potential opportunities in the market. Our solutions helped the client understand the market dynamics, assess trade channels, and supplier landscape in the steel and carbide industry. Moreover, an in-depth analysis of the competitors also enabled the clients to make informed decisions.

A must-read case study for strategy experts and decision makers looking to gain strategic insights into the manufacturing segment.

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Pharmaceutical packaging

Sourcing Intelligence Study on Raw Materials from Emerging Markets

Business Challenge
A leading industrial equipment manufacturer wanted to assess the potential sourcing opportunities in emerging markets.
Situation
The client wanted us to assess the possibility of sourcing raw materials including iron, aluminum, plastic, glass, and rubber from emerging markets. It also wanted to gain an understanding of the supply landscape in these markets.
Approach
We conducted in-depth primary and secondary research to shortlist potential sourcing destinations. We also conducted detailed assessments (at a country level) to obtain insights on key suppliers and rank them accordingly.
Impact
Based on our insights, the client was able to understand the supply market and shortlist key sourcing destinations that could help save costs. Furthermore, it was able to identify and shortlist potential suppliers based on their capabilities.
IPTV Service

Emerging Market Intelligence Study on Sourcing Raw Materials for Heavy Industry

Business Challenge
A leading industrial equipment manufacturer wanted to assess the potential sourcing opportunities in emerging markets.
Situation
The client wanted us to assess the possibility of sourcing raw materials including iron, aluminum, plastic, glass, and rubber from emerging markets. It also wanted to gain an understanding of the supply landscape in these markets.
Approach
We conducted in-depth primary and secondary research to shortlist potential sourcing destinations. We also conducted detailed assessments (at a country level) to obtain insights on key suppliers and rank them accordingly.
Impact
Based on our insights, the client was able to understand the supply market and shortlist key sourcing destinations that could help save costs. Furthermore, it was able to identify and shortlist potential suppliers based on their capabilities.