Supply Chain Risk Analysis: A Case Study on How We Helped a Leading Player in the Non Processed Foods Industry
Overview of the non processed foods sector Typically, non processed foods include the food items that are unaltered and used in their natural state rather than processing them. A few examples of non processed foods include fresh fruits and vegetables. Although they are healthier options when compared to processed foods, it is essential to take […]READ MORE >>
Overview of the non processed foods sector
Typically, non processed foods include the food items that are unaltered and used in their natural state rather than processing them. A few examples of non processed foods include fresh fruits and vegetables. Although they are healthier options when compared to processed foods, it is essential to take certain precautionary measures to prevent food-related illness.
With rapid changes in lifestyle, people across the globe are increasingly turning toward healthier options that include the use of non processed foods in the diet. Also, the macro trend of clean eating is driving significant changes in the global food and beverage industry. Additionally, an increasing number of consumers now prefer consuming products that are healthier, unprocessed, and organic.
The Business Challenge and Journey
A leading player in the food and beverage industry, dealing with the sale and production of non processed foods was looking at leveraging SpendEdge’s risk analysis solution to identify and prevent the losses occurring due to the risks in their supply chain.
The client was facing several issues related to their inefficient supply chain strategies. The company’s supply chain management executives recognized the tremendous benefits of implementing a supply chain risk analysis study. As such, they were looking at reducing the company’s risk profile by improving the efficiency of their overall supply chain operations.
To identify challenges in the supply chain functions, the risk analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the food and beverage industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
Why should you leverage supply chain risk analysis?
Risk analysis helps companies identify the risks which are a possibility of any undesirable event that affects business processes. A typical risk analysis process starts with risk identification, risk assessment, risk management, and risk control and monitoring.
An adequate supply chain risk analysis solution aids businesses in developing a strategic action plan to identify and prevent losses occurring due to supply chain risks. The assessment process affects nearly every aspect of an enterprise including product development, R&D, demand and supply planning, manufacturing, delivery of goods, and customer returns. Moreover, the dynamic nature of supply chains across various industrial sectors has made supply chain risk analysis an essential component of enterprise risk management.
Fundamental questions answered in this supply chain risk analysis study include:
SpendEdge’s supply chain risk analysis solution offered actionable insights that helped the client to devise a robust risk management strategy. The risk analysis solution also enabled the non processed foods industry client to identify the significant risk factors in their external and internal supply chain networks. It included demand risk, operational risk, supply risk, economic crises, labor issues, and changes in government regulations.
Moreover, our solution assisted the non processed foods manufacturer to achieve breakthrough improvements in their overall supply chain performance. Furthermore, it offered relevant insights to better understand the market scenario, supplier negotiation strategies, industry standards, and expectations.
Non processed foods market drivers:
Increasing adoption of the paleo diet– The paleo diet mainly focuses on the consumption of raw and unprocessed foods. Since there are a very few food products that focus on fresh and unprocessed foods, there are several growth opportunities for players in this sector.
Rise in the shift to a vegan lifestyle– A vegan diet is based on the consumption of natural or raw ingredients that are plant-based. It is essential to maintain transparency in the usage of ingredients and across the supply chain to enhance customer satisfaction.
Growing demand for organic and natural ingredients– The organic food industry will continue to grow owing to the high demand from the consumers across the globe. The consumers that adhere to an organic diet also tend to look for natural and non processed foods, thereby, leading to an increase in the overall demand.
As the global food and beverage market continues to grow, there’s an increase in new market opportunities for players in the non processed foods segment. Also, consumers across the globe prefer ethically sourced and non processed foods that are void of dangerous chemicals and other such factors that affect the end-users health. However, maintaining transparency in the supply chain is the key to achieving better returns.
To know more about our supply chain risk analysis solutions