CASE STUDY

Strategic Sourcing of Healthy Snack Foods: A Food Industry Case Study

Aug 20, 2018

Strategic Sourcing Steps

Strategic sourcing can either make or break a business and helps businesses find the right suppliers. Here are a few general strategic sourcing steps that an organization must follow to reap the benefits of strategic sourcing.

  • Identify Needs: Consolidate and coordinate in-house work orders and get familiarized with the needs of the company on a regular basis. Also, track purchase orders and product deliveries and understand the delays, shortages, and fluctuations of the products.
  • Connect with the Suppliers: Build a team of suppliers who work well together. SE banner SquareThis will help an organization achieve windfall in several circumstances.
  • Invite Bidding: Invite new suppliers to place bids or come in for consultations and interviews. Additionally, make sure that the prospective supplier understands the company needs and expectations. This becomes crucial for any business to achieve success.
  • Grant Trial Contracts: Set up trial contracts, by limiting the obligations to a certain duration helps an organization observe the way that the potential supplier operates and weed out those who do not meet the desired preferences.
  • Compare Track Records: Setting up a wish list for the potential suppliers helps an organization maintain accurate records; thereby, allowing a company to take necessary actions when a problem first surfaces.

Benefits of Strategic Sourcing

Strategic sourcing helps organizations join forces with suppliers and vendors who can help grow business while weeding out the suppliers and vendors who hampers the progress. Strategic sourcing is an ongoing process that considers factors beyond just cost of a product or service and helps procurement professionals fulfill their roles of cost and supply management. Moreover, a robust strategic sourcing approach allows category managers and procurement professionals to consolidate procurement power to secure the best value available.

In our latest engagement, we helped a leading healthy snack foods manufacturer administer multi-year supply agreements with incumbent suppliers defining services and pricing terms.

Continue reading to know about the strategic sourcing steps or request a free proposal.

request proposal

 

About the Client

The client – is a multi-national privately-owned company based out of Canada. It is the world’s largest manufacturer of frozen potato products and healthy snack foods

Client’s Challenge

The client had no central capture of specifications or pricing for new items. SE banner SquareAlso, the company had no formal supply agreements in place. As a result, they wanted to leverage the strategic sourcing steps and reap the benefits of strategic sourcing. Additionally, the healthy snack foods manufacturer wanted to meet product specific protection requirements and build strong relationships with incumbent suppliers. Furthermore, the healthy snack foods manufacturer wanted to eliminate the unique barrier properties to maintain product freshness.

Business Impact

With the help of SpendEdge’s strategic sourcing engagement, the healthy snack foods manufacturer congregated and compiled specification and spend metrics across their business units. The client also performed a business needs analysis and leveraged total company spend volume with comprehensive sourcing effort. The strategic sourcing steps also provided additional criteria for client’s supplier evaluation program. Furthermore, the healthy snack foods manufacturer mitigated the economic risk in underlying commodity markets by pegging prices and reaped the benefits of strategic sourcing.

The Future of Food Trends

Today, it is hard to foresee the future of food in a world that is changing faster and faster. Ecological brittleness and the arrival of extremely disruptive technologies make this exercise increasingly arduous. However, by observing the evolution of dietary habits of the generations, it is possible to understand a few signs that express for themselves.


To know more about the benefits of strategic sourcing

Contact US


 

Recent Case Studies

Industries

Services

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars