Overview of the Non Alcoholic Beverages Industry
Over the past few years, owing to the increasing concern regarding obesity and health awareness, the non alcoholic beverage industry is reshaping to more nutritive low-calorie beverages. The non alcoholic beverage industry mainly comprises of products ranging from fruit juices, ready-to-drink coffee, soft drinks, and energy drinks. Leading manufacturers in the non alcoholic beverages space are increasing their focus on new product launches to cater to the ever-changing consumer preferences. The non alcoholic beverage industry is also characterized by factors such as rising population growth, and rapidly changing consumer preferences along with the rising societal awareness pertaining to health complications.
Although the industry is witnessing a promising growth, several other factors are expected to hinder the growth of the industry. These include:
- Fluctuating consumer preferences: The altering preferences of the customers across the globe are forcing business providers to offer products that are in sync with the demands of customers. Additionally, consumers have become more informed and can gain access to a vast array of data in terms of ingredients used in the offerings by companies.
- Stringent government regulations: It is essential for an organization to ensure the standard compliance requirements are met before marketing the products to the target audience owing to the issues in terms of regulations in labeling and listing of ingredients.
Numerous such factors are compelling non alcoholic beverages industry players to leverage the use of supplier evaluation solutions. Supplier evaluation solutions help companies identified relevant price drivers and assess TCO, including the impact of rationalizing SKUs.
These solutions also help firms make the supplier selection effective by providing them detailed supplier evaluation criteria and pricing worksheets.
The Business Challenge and Journey
The client, a leading manufacturer of non alcoholic beverage with business operations spread across the globe, wanted to standardize and reduce SKUs for select items and incorporate category best practices across their business units. Additionally, the primary aim of the client was to reduce the cost of goods associated with non alcoholic beverages supplies.
To help the client achieve savings and tackle the challenges, the supplier evaluation experts at SpendEdge carried out an extensive research methodology. The research methodology included primary and secondary research coupled with qualitative and quantitative data collection and interviews and discussions with leading supply experts within the non alcoholic beverages space.
During the course of the supplier evaluation engagement with SpendEdge, the client gained actionable insights into supplier evaluation criteria and pricing worksheets to make the most out of their supplier selection. Additionally, the client obtained recommendations on ways to select the final supplier in terms of qualitative assessment scores, quality audit results, geographic coverage, previous experience with the vendor, approved samples, and the total product development costs.
Fundamental questions answered in this supplier evaluation engagement
The Results
The ResultsSpendEdge’s supplier evaluation engagement helped the client validate the recommended suppliers’ compliance with delivery requirements and SLAs. This helped them identify savings of 35%, compared to their previous spend.
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