The personal care products industry includes products that are used for personal hygiene and beautification. Key factors fueling the growth of the personal care products market are increasing consumer inclination towards maintaining and enhancing personal aesthetic appeal, growing concerns about personal hygiene, and rapid growth of the retail industry. However, growing consumer inclination towards homemade remedies such as honey wash, high product costs, and lavender cream may pose a significant challenge for personal care products suppliers.
The presence of such challenges in the market coupled with the dire need for increasing profit margins in today’s competitive business scenario has compelled personal care products manufacturers to opt for supplier risk management services. Such solutions help businesses build capabilities for logistics, credit management, and other peripheral functions.
The Procurement Pain Point and Insights Offered
A global personal care products company wanted to identify and develop a list of supply chain frameworks and sourcing practices employed by competitors’ firms specializing in personal care products. They also wanted to conduct a deep-dive analysis of the market space to identify numerous categories of vulnerabilities across the supply chain.
To address the client’s issue, the supplier risk management specialists at SpendEdge followed an in-depth two-step research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection procedures to cater to the specific category requirements of the client. During the course of this supplier risk management study, the client was able to identify the most critical supplier risks based on several aspects including relationships, political risks, distribution and logistics operations, and geography. Additionally, the client was able to increase their focus on the crucial operational areas directly related to the risk and map them with the key interdependencies and current mitigation strategies.
Key questions answered in this supplier risk management study include
The supplier risk management engagement helped the personal care products manufacturer identify functions and best practice to increase revenues. Additionally, the client was able to determine the major suppliers and their key service offerings. This helped the personal care products manufacturer negotiate contractual terms better. Furthermore, the supplier risk management solution offered by SpendEdge also helped the client build capabilities for logistics, credit management, and other peripheral functions.