Healthy Hot Drinks Market Overview
Increasing demand for healthy hot drinks in emerging countries coupled with the introduction of new beverage alternatives has resulted in a superior demand for the global healthy hot drinks. Additionally, the demand for healthy hot drinks are proliferating and almost all segments of the food and beverage industry are fronting an exponential growth frequency coupled with a relentless modification of consumer preferences. Furthermore, healthy hot drinks have health benefits; coffee is known as the psychoactive component as it contains a stimulant called caffeine which enhances various aspects of the human brain function.
Who should implement strategic sourcing best practices?
Strategic sourcing is more of a sole project but rather an unremitting process that rolls like a wheel. Strategic sourcing best practices act as a guide for developing consistent procurement processes across various industry verticals. As a result, every organization should implement strategic sourcing best practices to achieve higher profit margins. Furthermore, strategic sourcing is a complex process that helps businesses in comprehending the relationship between an organization and their suppliers.
Benefits of Strategic Sourcing Best Practices
Strategic sourcing entails every category of spend and suppliers to be analyzed. Each existing supplier is evaluated separately for financial risk, quality risk, availability risk, and level of cooperation. A robust strategic sourcing approach allows procurement professionals and category managers to augment procurement power to secure the best value available. Here are a few benefits:
Improved sustainability: Strategic sourcing is not a one-time initiative or plan; it is an endless cycle of activities. Dedicated category managers will keep an eye on the category and supplier performance to achieve improved sustainability.
Measured supply risks: Strategic sourcing involves every category of spend and suppliers to be analyzed. Each prevailing supplier is evaluated separately for quality risk, availability risk, financial risk, and level of cooperation.
Increased profit: Strategic sourcing systematically looks for savings from the whole supply chain; thereby, providing a business with a competitive advantage.
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The healthy hot drinks manufacturer had no recognized supply agreements in place. As a result, they wanted to leverage the strategic sourcing best practices and reap its benefits. Additionally, the healthy hot drinks manufacturer wanted to meet product specific protection requirements and build strong relationships with incumbent suppliers and eliminate supply barriers to maintain product freshness.
With the help of SpendEdge’s strategic sourcing best practices engagement, the healthy hot drinks manufacturer employed a sophisticated sourcing process reinforced by a web-based e-sourcing platform which helped them add new facilities through acquisitions that are unified into the existing supply chain. The healthy hot drinks manufacturer also performed a business needs analysis and leveraged total company spend volume with a comprehensive sourcing effort. This helped them mitigate the economic risks in all their underlying commodities.