Spend Analysis: A Success Story on How SpendEdge Helped a Leading Player in the Food and Beverage Industry
Overview of the dehydrated ready to eat food products manufacturing sector Dehydration is the process extracting the moisture content of cooked food products with the help of advanced technology and equipment. This process converts the food products into a granular form while retaining most of its nutritional value, color, flavor, taste, and other such aspects. […]READ MORE >>
Overview of the dehydrated ready to eat food products manufacturing sector
Dehydration is the process extracting the moisture content of cooked food products with the help of advanced technology and equipment. This process converts the food products into a granular form while retaining most of its nutritional value, color, flavor, taste, and other such aspects. It is important to note that the process of dehydration is a simple process that is void of chemicals and preservatives. Such dehydrated ready to eat food products can be stored for longer durations and this is turning to be a major reason for their increasing demand.
The global food and beverage sector is heading to a ready to eat revolution. Also, the increase in demand for ready to eat food products can be attributed to the growth of supermarkets and other specialized retail chains across the globe. Other factors fueling the demand for ready to eat food products include high shelf-life, rapid lifestyle changes, ease of availability, and other socio-economic factors.
The global dehydrated ready to eat food products segment is broadly segmented into:
- Dehydrated Vegetables
- Dehydrated Fruits
- Dehydrated Meat
The Business Challenge and Journey
The client, a leading player in the food and beverage industry, specializing in the manufacturing of dehydrated ready to eat food products wanted to leverage the use of SpendEdge’s spend analysis solution. The client also wanted to boost the process efficiency and cost-effectiveness across their business units.
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 spend analysis study. As such, they were looking at reducing the company’s risk profile by improving the efficiency of their overall operations and by cutting down on maverick spend.
To identify challenges in the supply chain functions, the spend 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 spend analysis?
Spend analysis is a practical approach to evaluate the strengths and weaknesses related to organizational spend. It helps in determining the best approach to achieve maximum benefits while reducing maverick spend.
The spend analysis assessment process affects nearly every aspect of an organization including product development, R&D, demand and supply planning, manufacturing, delivery of goods, and customer returns. Moreover, the dynamic nature of supply chains across industries has made spend analysis a vital component for business growth.
Fundamental questions answered in this spend analysis study include:
SpendEdge’s spend analysis solution offered relevant insights that helped the ready to eat food products manufacturing firm in assessing the spend patterns to derive meaningful insights and drive business growth. Our solution also enabled the client to identify, implement the best practices that produced the best performance results in the ready to eat food products manufacturing sector, in terms of savings, cost efficiency, and process efficiency.
Moreover, the spend analysis solution enabled the client 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.
Ready to eat food products market drivers:
- Urbanization– Rapid urbanization is a key factor augmenting the demand for ready to eat food products across emerging economies. Other factors such as time crunch due to busy work schedules of people living in urban areas, increase the dependence on ready to eat food products. This is further aided by the penetration and availability of a wide variety of ready to eat products in different packaging formats at various retail points.
- New technologies- Technological advancements and innovations have further enabled players in this sector to enhance their product offerings. Such factors have also made it easier to develop and market region-specific products in order to cater to the needs of people living in specific geographical areas.
In an effort to identify long-term savings, leading organizations have turned to spend analysis, to analyze their organizational expenditures. Several business firms have already taken advantage of the information that a robust spend analysis study can provide their supply chain operations. Moreover, organizations with spend analysis have reaped benefits in the areas of cost-effectiveness and process efficiency. Therefore, it is essential for any company irrespective of the sector in which it operates to implement a spend analysis study to enhance business models and gain a competitive edge.
To know more about our spend analysis solutions