CASE STUDY

A leading CPG company zeroes-in on best-fit contract manufacturers with SpendEdge

Oct 11, 2022

Our client is a branded contract manufacturer of jams, jellies, spreads, foods, snacks, juice, cocktails, and mocktails primarily focused on the US and Canadian markets. Jams and jellies are popular bread spreads in the US and Canada. Both markets show a growing preference for ready-to-eat foods, which has also been driving the consumption of jams, jellies, and the like. Everything went smoothly until a few years ago when the market began to show signs of distress. Since then, growth worries have kept this sector under pressure. Essentially, there was a steady downtick in market shares for jam and jelly businesses, driven by consumer concerns about high sugar content, artificial preservatives, and fat content. Understanding what is healthy for consumers and delivering those outputs is key to the market participants in this sector. Furthermore, they need to be able to find reliable contract manufacturers capable of delivering the goods and improving their procurement supply chain, overall. This calls for current and highly relevant procurement market intelligence, actionable insights, and industry best practices.  

Are you aiming to expand your growth prospects in the food beverage and CPG industry? Look no further! Click below to connect with our sourcing experts who can help you create a seam less growth journey for your organization with procurement best practices and best-fit contract manufacturers.

What consumer behavior trends and patterns we can watch out for while choosing contract manufacturers!

Consuming “clean-label” products is a growing trend in the US, though there is no agreed definition. This increased consumer focus on health, based on facts or perceptions about packaged ready-to-eat products, is quite understandable since 34.2% of adults over the age of 20 in the US are overweight. 33.8 percent of adults are obese, while 11.3% of the country’s population has diabetes. Besides, consumer and public opinion is weighing more heavily, unlike any time in the past, in favor of ethical/green labels (e.g., organic, green, vegan, fair-trade, non-GMO). Alongside, the market is demonstrating increasing appetite for new flavors of jams, jellies, and spreads processed from non-traditional fruits, such as avocado, chironja, and guanabana.


Faced with a raft of business issues, including intense competition, the client turned to procurement experts at SpendEdge for assistance in improving profit margins and reducing operating costs with best-fit contract manufacturers. Migrating several of the cost-intensive operations to low-cost destinations was the main plank. At stake for our client was an addressable market of over USD 930 million in the US and more than USD 146 million in Canada!

Our procurement specialists identified key contract manufacturers for the client’s ready-to-eat product line comprising jams, jellies, and spreads. There were many factors to weigh, such as plant locations, equipment type, and quality certifications, to arrive at various contract manufacturers’ relative operational and functional capabilities. Applying our market research methodology, brought to perfection over the last 18 years, our team evaluated the client’s business requirements and identified key contract manufacturers. Furthermore, our specialists validated and tabulated research findings to narrow down to a shortlist of five contractor manufacturers. The timing was important for the client, and our team quickly wrapped up the entire exercise. The client has started working with one of the contract manufacturers on our shortlist and the early results are very encouraging.

It is essential for any large global company to set up a clear and strategic sourcing plan to stay ahead from their peers and tackle all challenges in the industry fueled by economic slowdown and pandemic.

Recent Case Studies

Driving Value through Strategic Category Management

Driving Value through Strategic Category Management

Over the past decade, the impact of strategic category management in the role of procurement role within an organization has become increasingly profound. No longer is procurement considered a tactical arm of the enterprise whose key tasks are purchasing and brokering...

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

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

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

Infiniti Research, Inc. BBB Business Review

Better Business Bureau

Transitioning your category procurement strategy beyond cost-saving and into a strategic function of the organization.

Procurement Trends to Implement in 2023 – Insights by SpendEdge

Procurement Trends to Implement in 2023 – Insights by SpendEdge

Over recent years, there have been various industry developments that served as or caused trends in procurement. These procurement trends include technology changes, novel strategic approaches, new processes, and necessary adaptations to change. As supply chains become increasingly complex, procurement has become highly crucial and influential in the production process and continues to grow.

read more
Essential Procurement KPIs Every Organization Must Measure in 2023

Essential Procurement KPIs Every Organization Must Measure in 2023

Leveraging insights gained from procurement KPIs can help companies substantially reduce costs, improve quality, significantly enhance speed-to-market, ensure better supplier relationships, and overcome internal organizational shortcomings. However, various procurement KPIs are assigned to evaluate multiple factors, processes, and systems. Still, companies and supply chain managers must learn to identify and focus on the KPIs most imperative to their business, apart from seven necessary procurement KPIs.

read more

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
Request Free Proposal