Lately, the food service industry has become more complex due to variables such as dynamic flexible marketing, mobile couponing, limited time offers, and the short lifecycle of new products. Additionally, the growing consumption of convenience food among consumers and rising demand for such food service establishments are some of the factors fueling the growth of the food service industry. However, according to SpendEdge’s category management experts, it has been noted that the spike in commodity prices and shifting consumer attitude towards healthy food is expected to pose a significant challenge. As a result of such challenges, players in the food service industry have started adopting category management studies to develop a better sourcing approach and reduce maverick spends across the supply chain.
Moreover, the category management solutions offered by SpendEdge help food service industry players to reduce their overall inventory spending.
The Procurement Pain Point and Insights Offered
A leading food service industry player wanted to develop a better sourcing approach and maintain healthy relationships with their suppliers. Additionally, the client also wanted to evaluate the dynamics of the market and key category drivers influencing growth. They also wanted to gain insights into the cost structure, suppliers pricing, suppliers’ diversity, and assess competitors’ best practices.
To address the specific requirements of the food service client, the category management experts at SpendEdge carried out a blended two step research methodology, which included primary and secondary research and a detailed assessment of company journals and case studies. With the help of this category management study, the food service client was able to develop a better sourcing approach and maintain healthy relationships with their suppliers through a comprehensive SWOT analysis. Additionally, the client was able to evaluate the dynamics of the market and drivers and gain insights on the suppliers’ pricing and cost structure across the supply chain. This helped them assess competitors’ best practices.
Key questions answered in this category management study include
This category management study helped the food service client develop better sourcing approach across the supply chain. Additionally, the client was suggested with tools to enhance their supplier selection decisions and reduce source-to-pay cycle times. This helped them build effective sourcing strategies and maintain better relationships with their suppliers.