BLOG

Procurement Challenges and Solutions for the Food and Beverage Industry

Feb 9, 2018

In the recent times, we have witnessed players in the food and beverage industry investing heavily in the latest technological advancements to improve their processes. This trend is contradictory to the cost-cutting mode that was prevalent in the sector a few years back. Companies have started to realize that modernizing their activities is a one-time investment that could reap significant benefits in the long run. One of the functions which require businesses in the food and beverage industry to be on their toes is procurement. This is the stage that often proves to be tricky, but if efficiently managed can result in substantial cost rSE_Demo2eductions and considerable savings.

What are the procurement challenges in the food and beverage industry?

There are several factors that players in the food and beverage industry need to consider during procurement. One of the main issues worrying the companies in this sector is to find the right strategies to combat the hindrances that they are likely to face during decision-making. So what are the challenges that businesses in the food and beverage space have to consider while making procurement decisions?

  • Developing fast and high-performing supply chains to enable greater responsiveness to insights gained from big data analytics and other market reports.
  • Ensuring strict regulatory compliance, supply-chain transparency, and traceability.
  • Minimizing supply chain complexities, especially for perishable and seasonal products.
  • Avoiding under-stocking and over-stocking situations
  • Keeping track of the changing food trends and procuring the right products to suit the demand
  • Finding the right supplier offering the products at reasonable prices.
  • Cost control and increase the profit margins

How can F&B companies overcome procurement challenges?

To gain a competitive advantage in the market, it is imperative for companies in the food and beverage industry to control and rigorously manage their expanding and increasingly complex global supply chains. How can businesses achieve this?

Spend analysis

An effective spend analysis strategy can help players in the food and beverage industry to protect profit margins and formulate category sourcing, procurement, and supplier negotiation strategies in a much easier manner.Businesses can also gain easy identification of savings opportunities to accelerate decision making.

Strategic Sourcing

By defining sourcing strategies, F&B companies can efficiently determine requirements, discover, evaluate and compare suppliers worldwide. With the help of sourcing strategies, companies can take decisions that are fact and market-driven.

Contract Management

Players in the food and beverage industry can use contract management to rapidly build, negotiate and execute contracts that contain all the necessary terms related to safety regulation, policy compliance, and risk avoidance. It can also help them to enhance stewardship, security, and continuity of important contract documents.

Supplier Management

A supplier management strategy can help enterprises to successfully onboard new suppliers, manage compliance with regulations, inspection, and control requirements through multiple supply-chain tiers. Additionally, businesses can also continuously track, benchmark and improve supplier performance to yield fast flexible, responsive and globally competitive supply chain.


To know more about how companies in the food and beverage industry can overcome procurement challengesGet More Info


Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars