BLOG

5 Best Ways to Evaluate Starch Manufacturer’s Performance

Nov 17, 2017

If you ever wondered why your rice is clumped together or potato sticks to the pan, it is because of starch, a common carbohydrate found in staple starchy foods such as rice, potatoes, wheat, maize, and cassava. For plants, starch is an efficient way of storing more energy in less space. In industrial applications, starch has a wide variety of uses ranging from use to stiffen the textiles, give strength and shape to paper, add taste to beverages and confectionary items, to its use in various consumer products. Starch manufacturers produce different kinds of starch such as maize starch, potato starch, and wheat starch, but cornstarch is the most common form. The procurement market intelligence report from SpendEdge states that corn starch accounted for nearly 57% of the global starch production capacity by raw material during 2016.

Request Free SampleWith multiple starch manufacturers and suppliers located across the world, it is essential to evaluate supplier performance and competencies to make decisions for future contracts. So how can buyers assess supplier performance in the global starch market?

Starch Production Hubs

Supplier Evaluation Criteria in Starch Market

#1- Service Resolution Rate

Suppliers ability to respond to buyer’s complaints in terms of quality of the starch, logistics issues, quantity, and packaging issues is a crucial indicator of the supplier performance. Ideally, buyers raise such complaints through complaint registration portal or email to which supplier should respond and ensure resolution within six weeks from the date the complaint was registered.

#2- Inventory Management Effectiveness

Buyers prefer to engage with suppliers who are reliable in terms of ability to provide effective inventory management. To assess supplier’s effectiveness in inventory management, the buyer can use metrics such as reduction in average lead time, which should be within a week for local suppliers, 15-20 days for regional suppliers, and within a month for global sourcing of starch. Additionally, buyers should also ensure that starch manufacturers have adequate safety stock inventory in case of unusual demands. Other things to look for is JIT adherence and use of automated inventory management systems.

#3- Efficient Plant Utilization Rate

Buyers can evaluate starch manufacturers based on their plant utilization rate; a higher percentage is indicative of lower variable costs. It signifies that the buyers can source starch from the suppliers at a lower rate. An ideal plant utilization rate in the starch industry is about 50%-60% of the total capacity.

#4- Lower Turn Around Time (TAT)

Apart from ensuring on-time delivery, starch suppliers should have a quick turnaround time (TAT) to respond to fluctuations in buyer’s demand without any degradation in starch quality. Buyers will ideally stick around with starch manufacturers that can fulfill buyers needs in terms of JIT delivery of starch. In the starch market, an ideal turnaround time is considered to be around 4-5 days from the date of requirement.

#5- Logistics Capabilities

The transportation of starch is not straightforward as it looks. Complications arise due to the difference in transportation laws across borders and complexity in packaging due to exposure to heat or moisture. To evaluate supplier’s logistics capabilities, buyers can assess the ratio of shipments damaged by shipments delivered.

 

Read more about the supplier assessment criteria for starch manufacturers along with pricing insights, sourcing strategy, key starch suppliers, procurement best practices and cost modeling in SpendEdge’s upcoming report on the global starch market.

CTA view full reportRelated Articles:

Recent Blogs

5 Pro Tips for an Impactful Procurement Process

5 Pro Tips for an Impactful Procurement Process

What is a procurement process cycle? Over the years, procurement process cycle has received a lot of attention as organizations across the globe have changed their focus from tactical functions to strategic business units. As a driver of major purchasing decisions,...

read more

Industries

Services

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

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

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

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