Spend Analysis Assists a Prominent Non Alcoholic Beverages Producer Identify the Potential Saving Opportunities
Overview of the Non Alcoholic Beverage Industry Over the years, the non alcoholic beverage industry is reshaping to more nutritive low-calorie beverages, owing to the increasing concern regarding obesity and health awareness. Non alcoholic beverages at large comprise of products ranging from fruit juices, soft drinks, ready-to-drink coffee, and energy drinks. Prominent manufacturers in the […]
Overview of the Non Alcoholic Beverage Industry
Over the years, the non alcoholic beverage industry is reshaping to more nutritive low-calorie beverages, owing to the increasing concern regarding obesity and health awareness. Non alcoholic beverages at large comprise of products ranging from fruit juices, soft drinks, ready-to-drink coffee, and energy drinks. Prominent manufacturers in the non alcoholic beverages space are concentrating on new product launches to meet the changing consumer preferences. Along with the rising societal awareness regarding health problems, the industry is also characterized by additional factors such as rising disposable income, population growth, and rapidly changing consumer preferences. Although the industry is witnessing a promising growth due to urbanization, several other factors may affect the growth of the industry. These include:
- Stringent government regulations: In the last couple years, the non alcoholic beverage industry is witnessing compliance issues in terms of regulations in labeling and listing the ingredients in the products offered. It becomes essential for organization to ensure the standard compliance requirements are met before offering the products to the target audience. Since, non alcoholic beverages are produced as an alternative for alcoholic beverages, ensuring the quality in the products becomes a necessary concern for the organizations.
- Altering consumer preferences: Consumers have become more informed and can gain access to a wide array of information in terms of the ingredients used in the product offerings. The altering preferences of the customers are compelling business providers to offer products that are in tune with the customers.
To estimate the relative spend and identify the potential saving opportunities, organizations are utilizing the need for a spend analysis solution. Spend analysis solution helps businesses gain adequate real-time spend visibility by cleansing, validating and classifying spend data in the organization. Also, the procurement teams can streamline their strategic sourcing, reduce maverick spend, and optimize substantial savings.
The Business Challenge and Journey
The client, a prominent non alcoholic beverages producer, wanted to streamline and identify their spending behavior to meet their procurement objectives. The client wanted to gain accurate, consistent, and detailed visibility into the spending patterns and improve data quality to reduce additional maverick spend. Through a detailed spend analysis engagement, the client wanted to seek ways to identify the potential bottlenecks in terms of savings leak, prices variance, and purchasing overlaps. The primary objective of the client was to compare the spend with that of the competitors and find deeper insights into the supply base.
To potentially determine any risks associated with the supply base, the spend analysis experts at SpendEdge carried out extensive research comprising of interviews and discussions with prominent procurement experts in the industry. The experts also compiled information across a wide array of proprietary sources such as trade shows, paid industry databases, and company presentations to enhance data accuracy and drive more informed business decisions.
The spend analysis solution offered by SpendEdge helped the non alcoholic beverages producer develop state-of-the-art tools to gain more comprehensive analysis of the spend. The client was able to identify the latest saving opportunities in the supply chain and generate accurate and actionable information on spending trends and buying activities. The solution also helped the client develop a short term, and medium term spend strategy to improve the overall process efficiency.
Fundamental questions answered in this spend analysis solution include:
During the course of the engagement, the non alcoholic beverages producer was able to negotiate a contract with the current suppliers and assess and profile the prominent supplier from a pool of competitors. Furthermore, with the help of the study, customers were able to gain an understanding of the spend analysis patterns of individual transactions right from the procurement to invoicing and expenses.