Supplier Selection in the Food Industry
About the Client
The client is one of the world’s foremost organic food manufacturer and supplier based out of US.
Consumers’ demand for healthy ingredients, complex flavor profiles, and vegan products have greatly shaped the food industry over the past five years. Even though these trends have unlocked new opportunities for the food manufacturers, staying on top of changing customer needs, understanding millennial preferences, and selecting the right suppliers are vital for survival in this competitive market.
Moreover, as the government has put a stronger emphasis on food safety and quality, evaluating and selecting the right supplier has become even more complex. The lack of managerial capability on supplier selection affects the competitiveness of the food manufacturing industry. Hence, food manufacturers must to go through complex stages of the supplier selection process and set a special selection criterion for selecting suitable suppliers. Infiniti’s supplier selection strategy helps companies choose the right suppliers and enhance supply chain visibility.
Business Case: The client, a leading food manufacturing company wanted to seek ways to deal with competition, reduce disruption related to the supply, and meet specific business objectives. Hence, the client approached Infiniti Research to devise an effective supplier selection process.
Top Challenges Faced by the Food Manufacturer
Problem Statement 1
The client was facing difficulties in identifying and profiling the suppliers. Hence, they wanted to implement a reliable system to identify the right suppliers.
Problem Statement 2
With a large number of suppliers to choose from, the client was facing difficulties in selecting the best supplier. With Infiniti’s supplier selection strategy, the client wanted to identify and shortlist robust suppliers, and profile key suppliers.
Problem Statement 3
They wanted to streamline their sources and procurement process and enhance the company’s overall position in the market.
Problem Statement 4
With the help of Infiniti’s supplier selection model, the client wanted to ensure quality and safety in their product offerings and consequently ensure better shelf-life of the products.
Solutions Offered and Value Delivered
The supplier selection solution offered by Infiniti Research helped the client to select the right suppliers from a pool of suppliers. The supplier selection process followed these phases:
To monitor the supplier performance, the experts at Infiniti Research carried out extensive research comprising of interviews and discussions with prominent stakeholders in the food industry space.
With the data gathered, the experts classified the suppliers into various categories based on their offerings.
The categorization helped the client to profile the right suppliers based on their characteristics. The engagement also sought ways for the client to improve the time-to-market for the products offered, drive customer demand, and build a strong brand reputation.
The supplier selection process also helped them streamline their sources and procurement process and thereby improve the company’s overall position in the market.
The supplier selection solution offered by Infiniti helped the client to select the right suppliers from a pool of suppliers. The engagement also assisted the company in evaluating capabilities and comparing price points. Moreover, the solution offered supported the client to establish KPIs to analyze suppliers’ strengths and weaknesses. Altogether, the supplier selection strategy assisted the client in selecting the best supplier and subsequently enhanced the quality of the products offered.
What is supplier selection?
Supplier selection is the method by which organizations identify, evaluate, and contract with suppliers. The supplier selection process deploys a tremendous amount of a firm’s financial resources. Hence, in return, companies expect significant benefits from contracting with suppliers offering high value. A strategic approach to choosing suppliers can also help companies to understand how their own potential customers weigh up their purchasing decisions.
Why Partner with Infiniti Research?
With a team of highly skilled market research professionals, we offer customized solutions that will help companies to magnify their competitive advantage by improving their speed-to-market. Our solutions have been proven to deliver insight-driven outcomes at scale, to help businesses improve their business performance.
CONTACT US to know more about our supplier selection strategy.