Non Alcoholic Beverages Industry Overview
U.S. consumers have a great thirst for trying new and exciting non alcoholic beverages. Nearly, 10% sales in the non alcoholic beverages industry come from new products. As a result, companies consistently need to bring new offerings to the marketplace and perform category level spend analysis to ensure profitability in different categories.
Business Challenges Faced
The client is a well-known company in the non alcoholic beverages industry with 30,000+ employees. With the rise in new product launches, brand extensions, and new flavour offerings, the client felt the need to lean on innovative practices to sustain their market share and increase profitability. However, this required the client to track savings from existing categories and identify latent saving opportunities. The client, therefore, approached SpendEdge to leverage its expertise in offering category level spend analysis solution.
Key objectives the client aimed to achieve through the category level spend analysis are:
- Identify saving opportunities in beverage staple categories such as water milk, and tea.
- Devise a spend strategy that could analyze their spend and find scope for improvement.
- Develop partnerships with suppliers in the non alcoholic beverages industry to implement best contracting practices.
Analyzing category spend analysis is imperative for companies in the non alcoholic beverages industry to identify saving opportunities. Request a proposal and access our complete portfolio of category level spend analysis solutions for free.Request Free Proposal
Our Research Approach
The experts at SpendEdge conducted a thorough analysis to understand the money spent on different categories. They classified categories using standard taxonomies and improved supplier relationships. This helped the client to improve visibility into category spend as well as drive performance improvement, contract compliance, and most importantly, cost savings.
With the SpendEdge’s spend analysis solution, the client was able to analyze procurement spend that provided category data to measure improvements and decide strategies to realize short term savings. The spend analysis techniques suggested by SpendEdge’s team helped them establish a parallel process that guided the client’s procurement team and budget holders to maximize value for the organization’s dollar in the food and beverage industry. This enabled the client to successfully add new items such as sparkling waters and oat milk by reducing expenditure in every category. Also, this improved the category’s overall performance while driving category sales.
Want to know how our solutions helped the firm in the non alcoholic beverages industry to drive category sales?Contact Us
Engagement Results and Benefits
The category level spend analysis engagement offered greater visibility into the amount of money spent on purchasing materials and services for different categories. This helped the client to consolidate suppliers, explore the spend in the defined spend category hierarchy, and identify spend leakage issues. Moreover, the engagement reduced expenditure by 45% in different categories.
Prioritized top spend categories
The engagement helped the company to allocate spend consistently into categories, identify top spend categories and negotiate for key spend categories to ensure more favorable contracts and pricing. The high-level overview of the spend category enabled the client to allocate resources for products popular in the food and beverage industry and improve ROI.
Performing category level spend analysis is a must for companies in the non alcoholic beverages industry to reduce expenditure. Request a free demo to gain complimentary access to our research library on the non alcoholic beverages industry.