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Risk Management Strategy

Why Developing a Risk Management Strategy is Crucial for Optimizing the Risk Profile?

Today, businesses face a myriad of issues that expose them to litigation, regulatory, reputational, and other risks. It often falls to the senior management to properly identify, manage and mitigate such risks before they cascade into a crisis. This is perhaps one of the biggest challenges facing businesses of today. However, by utilizing appropriate resources and deploying them proactively, the reputation and long-term viability of any enterprise can be protected. Developing and implementing an effective risk management strategy can help businesses save costs, reduce aggravation, limit exposure, and enhance value for shareholders. Here are the few benefits of implementing a risk management strategy. 

Want to develop a risk management strategy template that can help you save costs? Request a free proposal to access our complete solution portfolio.

Benefits of Implementing a Risk Management Strategy

Helps identify apparent risks

Many of the real risks facing an organization cannot be gleaned from a document or a policy.  An effective risk management strategy is crucial to identify and gain a deeper understanding of all types of risks. Understanding risks will allow businesses to identify different types of potential risks, determine a proper investment asset allocation for a portfolio, and optimize the risk profile.

Increases productivity

It does not matter whether a company manufactures consumer goods, build skyscrapers, or provide legal advice. Every business has its product lines. A risk management strategy enables businesses to analyze the production line and find ways to improve their efficiency. It also means that a risk management strategy helps businesses to stay safe from risks and work in a much better way by ensuring a risk-free production line.

Wondering how a risk management strategy can improve the production line of your business?

Get in touch with our experts to develop a risk management strategy plan.

Improves bottom line

Companies across the world today spend fortunes cleaning up messes they could have prevented. A risk management strategy helps companies avoid such problems by ensuring compliance with regulatory norms and implementing proper security protocols. It also reduces costs associated with different incidents. For instance, if an employee does not come for a shift, the business might struggle operationally.  Having a backup roster will prevent that fallout in such conditions. 

Streamline customer services

A risk management strategy isn’t magic but has a profound effect on the way a company operates. It enhances customer satisfaction by improving operational efficiency and consistency. Also, it improves data security preventing downtime, which improves customers’ happiness.

Companies with an effective operational risk management strategy tend to have better customer outcomes as employees are more engaged.

Improving customer services requires companies to devise a risk management strategy and improve their operational efficiency. Request a free demo to know how our experts can help you gain precise market insights.

Enhances efficiency

Early awareness of the problems helps businesses to address the problem areasa before it becomes too severe. Accessing risk information in real-time ensures that decisions made are based on the latest data, and not on some old reports.  It allows a point of discussion among teams and suppliers and creates more positive working relationships. Thus, managing risks can be a more efficient and cost-effective way of running the business.

To know more about the benefits of implementing a risk management strategy, request more information here!


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  1. Developing a Sound Risk Management Process in Five Simple Steps
  2. Risk Management Strategy in Procurement and Supply Chain
SWOT analysis

Key Steps to Consider While Conducting SWOT Analysis for Ecommerce Companies

Access to the global market is the biggest strength of ecommerce businesses. It enables companies to expand themselves to the global level and facilitates the growth of global retailers. However, there are certain factors that companies need to analyze to compete on the global level. They are required to compare their businesses against both online sellers and brick-and-mortar retailers to take advantage of opportunities.

With the aid of a SWOT analysis template, ecommerce merchants can scan their relative standing within an industry, analyze their strengths, and minimize weaknesses.  They can also identify opportunities and threats that will help them strengthen their position in the industry. Here are the steps involved in developing a SWOT analysis template.

Want to know how developing a SWOT analysis template can benefit your business? Request a free proposal to access our complete category market intelligence solution portfolio for free.

SWOT Analysis for Ecommerce Businesses

Step #1: Collect relevant data

Companies need to have accurate data – stats, traffic figures, and sales data – before conducting SWOT analysis for a business. It will form the basis of any further analysis for companies. Few metrics that companies should necessarily check are:

Current website traffic: Gain a thorough understanding of the number of visitors, page views, and bounce rate to identify traffic trends and consumer preferences.

Conversion rates: Conversion rates represents the number the percentage of users that end up buying after visiting the site.

Social media statistics: Social media is a large source of traffic for most ecommerce companies. Also, it offers detailed insights into customer choices and trends.

Shipping data: Know the average shipping time, shipping costs, and shipping delay to serve customers better and improve customer service.

Collecting accurate data is vital for companies to devise an effective SWOT analysis template.

Get in touch with our experts to know how they can help you gain precise market insights and develop a SWOT analysis template.

Step #2: Perform competitor analysis

Competitor SWOT analysis is crucial for companies to identify opportunities and threats that can impact the business in the coming future. It starts by listing the major competitors and then finding the following details:

Product details: Analyze the key competitors’ website and find out the products sold by them. Also, gain key insights regarding new products they are planning to launch and document the pricing for all their products as well as the shipping costs.

Promotions:  Know if competitors are running any current promotions such as a discount, offers and coupons. If yes, analyze how prominently they are running these promotions and the products they are promoting heavily.

Advertising spend: Understand where competitors are advertising their products. Identify advertising mediums, target keywords, and top social channels they are utilizing. If possible, find out the competitors’ offline ad spend including radio and TV advertising.

Website designs: Although this is subjective, performing a design and usability audit is must to figure out the quality and quantity of product images and spot opportunities for improvement.

Conducting competitor SWOT analysis is imperative to analyze costs of various available alternatives. Request a free demo to start your 7-day free trial now!

Step #3: Analyze market trends

Often, there is little concrete data available on trends but analyzing future demand can provide companies with a good idea of trends. If you have been in business for some time, you’ll have a better understanding of the market. It is also important to determine factors such as:

  • Market trends that can increase or decrease the sale for your products (for instance: any celeb started wearing an outfit similar to yours).
  • Current and projected demand for your products.
  • Regulatory norms and custom duties that impact the shipping of products in different countries.
  • Recent market developments that can impact the competition.

“Since having an estimate of the exact numbers for each factor is difficult, a general idea of developments happening in the retail industry will form the basis to perform SWOT analysis,” says a procurement expert from SpendEdge

Although SWOT analysis isn’t imperative for ecommerce success, it is highly recommended by our experts to build an effective long-term strategy for business.  With a SWOT analysis template, you’ll be able to identify trends before competitors and plan effective growth strategies.

To know more about the benefits of developing a SWOT analysis template for ecommerce companies, request more information here!

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How SpendEdge’s SWOT Analysis Helped an Ecommerce business Grow Sales From $13,000 to $98,000 Per Month

Developing a Strategic Business Plan with the Help of a SWOT Analysis Template – A Case Study by SpendEdge

Supply chain optimization

A Collaborative Approach to Solving Supply Chain Optimization Problems

Supply chain optimization involves the integration of decision-making processes to manage the production and flow of products and services from the source to customers. It requires companies to automate transaction processes and capture data related to supply chain and logistics operations. However, it is neither easy nor cheap but offers the biggest opportunity for most companies to improve their performance and significantly reduce costs. For most supply chain and logistics operations, there is an opportunity to reduce costs by 10% to 40% by making better decisions. This article will help companies to better understand supply chain optimization problems and the steps they should be taking to significantly reduce their costs and improve performance.

Supply Chain Optimization Problems and Steps to Address Them

Supply chain optimization problems #1: Location

Location plays an important role when it comes to supply chain optimization. Location decisions depend on market demands and the customer base. Strategic decisions must be focused on the placement of production plants, distribution, and stocking facilities in prime locations.  Once customer markets are determined, locating production and stocking facilities close to consumers is one of the key supply chain optimization problems that companies face today.

In industries where components are lightweight and market-driven, facilities should be located close to the end-user. In the heavy industry segment, companies must determine where plants should be located to keep the distance to a minimum. Also, tax and tariffs should be taken into consideration, especially during inter-state and worldwide distribution.

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Supply chain optimization problems #2: Production

Key decisions regarding the production process are based on customers’ preferences and market demands. This is one of the major supply chain optimization problems affecting companies of today since they fail to analyze market demands accurately. With the rising complexity, companies lose supply chain visibility and do not have a clear idea of how many products to produce. Also, they face difficulties in determining which parts or components should be produced at which plants or outsourced to capable suppliers.

Such strategic decisions regarding the production of products must focus on capacity, quality, and volume of goods, ensuring that the customers’ demands are met. Furthermore, operational decisions such as scheduling workloads, maintenance of equipment, and meeting immediate client/market demands, should necessarily be taken into consideration while developing a supply chain optimization model.

Supply chain optimization problems #3: Inventory accuracy

Inventory management is a critical issue in supply chain management optimization. Companies must have 100% inventory accuracy as it costs anywhere between 20-40% of their value. Also, without 100% inventory accuracy, companies will not be able to ship to customers on-time.

Implementing a warehouse management system or resources planning system to maintain optimal levels of stock at each location is important to ensure customer satisfaction. Correct levels of supplies at order and reorder points should be determined by control policies to ensure smooth functioning of day to day operation of organizations.

Supply chain optimization problems #4: Tier 2 Suppliers

Tier 2 suppliers are the suppliers who provide components, raw materials, and, at times, services to suppliers. However, companies do not possess much knowledge about such suppliers, the products they supply, their pricing strategies, and lead times – creating numerous supply chain optimization problems.

Businesses should build a relationship with Tier 2 suppliers, negotiate with them, and develop strategies to lower cost of goods and lead times.  Many times, a Tier 2 supplier supplies more than one of Tier 1 suppliers. Negotiating volume pricing should also be done to optimize the supply chain.

Supply chain optimization problems #5: RFXs

Requests for Proposals (RFPs), Requests for Quote (RFQs), and Requests for Information (RFIs) are the key metrics for businesses to ensure that their suppliers are providing the highest quality products at the lowest costs. However, measuring such metrics can be difficult for companies.

The infrastructure, financial strength, and capabilities of new suppliers should be evaluated through RFI to identify new potential suppliers.  After that, RFQ should be reviewed to get the best prices to drive down process costs, and to ensure quality and ongoing supply.

Supply chain optimization problems #6: Distribution and transportation

Transportation decisions are closely related to inventory decisions as well as meeting customer demands. If the goal of the company is to ship what customer wants, when that customer wants it, then they might fall into the trap of relying on expedited and overnight shipping fees to make up the delays in production or purchasing process.

Robust demand planning and selecting the right mode of transport is critical to minimize the amount of money spent on logistics expedite. The transportation mode must be chosen in a way that customer service levels are met and logistics costs are reduced. Developing dynamic supply chain network optimization capabilities, understanding lead times, and having access to long-term demand are a few methods to optimize the supply chain.

Recent Posts

procurement software trends

Top Procurement Software Trends in 2019

Procurement software is becoming widely adopted by companies of all sizes from all across the globe to automate the purchasing process of their businesses. Procurement software has been acknowledged as one of the best solutions in terms of selecting products & services, approving orders, managing purchase orders, sending & receiving invoices, combining multiple orders, and keeping track of all the payments. Due to these benefits, there is a growing demand for the automation of purchasing processes to increase business efficiency, which has become some of the major procurement software trends to drive the growth of the procurement software market over the past few years.

 

The Global Category Spend for Procurement Software is Set to Grow Fast

 

According the recent procurement market intelligence report from SpendEdge, the global category spend for procurement software market is expected to reach USD 7.5 billion by 2021, representing an impressive spend growth of 11.82% in terms of CAGR from 2017 to 2021. Automation is a major driving factor in the global procurement software market and suppliers are aiming at providing automated and integrated process controls within the software to cater to buyers’ demand, which in turn is driving the demand.

Procurement processes, such as order placing and invoice generation, are increasingly moving towards automated processes to reduce management efforts and cost for buyers. Procurement software enables buyers to automate select procurement functions, thereby reducing management’s efforts to deal with those activities while simultaneously recording process parameters.

To gain detailed insights into the benefits of purchasing strategies in procurement software, request more information here!

Top Procurement Software Trends in 2019

 

Growing Demand for Analytics Capabilities in Procurement Software Solutions

 

The use of analytics enables buyers to draw meaningful conclusions from data sets. The recent procurement software trends have seen that analytic features are being widely adopted in during the procurement process to make better decisions. An increasing number of procurement software suppliers have started incorporating analytic functions in their procurement software solutions to provide users with insights on factors such as spend and vendor performance. This trend is expected to be further strengthened during the near future, as more businesses will focus on data analytics for better operational decision making.

 

Cloud-based Procurement Software Solutions is Gaining Popularity

 

One of the obvious procurement software trends is the shift from in-house deployment to cloud-based solution in terms of procurement software adoption over the recent years. A cloud-based software solution involves hosting the software from a dedicated server over the internet while in-house deployment requires users to install hardware infrastructure while implementing the software at buyers’ premises. With the cloud-based software, buyers do not have to spend on hardware. Therefore, the procurement software industry has observed a rise in demand for cloud-based solution.

 

Suppliers are Providing e-Auction Support with Software Suite

 

Vendor selection is an important part of the procurement process, which is often carried out through a physical auction, but now it is being automated by procurement software with e-auctioning functions. The E-auctioning feature in procurement software refers to the process of selection a vendor through an auction on an online platform to further simplify the auction process and increase business efficiency.

 

Emergence of More Managed Service Providers

 

In order to better manage multiple processes in the procurement cycle, procurement software suppliers have started providing end-to-end solutions while also acting as a managed service provider and exhibiting IT aggregation potential. Source-to-pay, a managed service, is fast replacing the procure-to-pay model that was earlier opted by clients to provide a better integrated management.

 

Inclination Toward a Simpler User Interface

 

Most legacy software often has complicated user interface and as a result companies must give training to the software operators. This limiting the number of users who can access or use the software. As businesses from all over the world continue to pursue the higher operational efficiency, procurement software suppliers are increasingly required to offer products and services with simplified user interface for better software usability.

Read more about the top trends for procurement software along with pricing trends, procurement best practices, supplier risks, pricing insights, strategic purchasing, and procurement insights in SpendEdge’s Global Procurement Software Category – Procurement Market Intelligence Report

Biotechnology trends

Top Biotechnology Trends Businesses Need to Watch Out Before Making Investments

Recent biotechnology trends such as the rising demand for therapeutic and diagnostic solutions, DNA sequencing, genome editing, and advancements in novel technologies are expected to spur the growth of biotech companies, globally. This growth is further fuelled by the increasing demand for genetics and regenerative medicines, penetration of artificial intelligence in the industry, and favorable policies. However, the implementation of stringent regulatory frameworks and risks associated with genetic data along with high operational costs may hinder the market’s progress. Here are the new trends in the biotechnology industry that companies need to track to ensure success in the biotech market.

Want to know how the latest trends in the biotechnology will impact top biotech companies.  Request a free proposal to access our complete procurement market intelligence solution portfolio for free.

What are the Latest Biotechnology Trends?

Biotechnology trends #1: CRISPR/ Cas biosensing systems

Apart from genome editing, the CRISPR/ Cas9 effector has wide biosensing applications. It allows highly sensitive, specific, rapid, cost-efficient, and multiplex detection of target nucleic acids without the need for technical expertise and complicated equipment. As the field continues to mature, genome editing with CRISPR/Cas systems will gain massive popularity for next-generation diagnostic biosensing platforms.

Biotechnology trends #2: New industrial therapeutic frontiers

Microvesicles (MVs) released by body cells can now be utilized for smart targeted therapeutic drug delivery systems. The crucial advantages of MVs over drugs include lack of immunogenicity, ability to overcome natural barriers, and intrinsic cell targeting properties. MVs are easier to process and can be modified for specific applications. Currently, naive (unmodified) and drug-loaded MVs are under development and are expected to impact the whole biotech industry.

Biotechnology trends #3: Cancer immunotherapy

Cancer immunotherapy development is expected to move beyond the chimeric antigen receptor (CAR) T- cells in 2019. Next-generation cell allogeneic products are expected to start registration trials of UCART19 in acute lymphoblastic leukemia (ALL) in the second half of 2019. This is one of the major biotechnology trends that can work in the favor of top biotech and biopharma companies.

Wondering how top biotech companies are leveraging the latest biotechnology trends to establish themselves in the biotech market?

Get in touch with our experts to gain detailed insights into top biotech companies and trends.

Biotechnology trends #4: Bionic organisms

Although the concept of bionic organisms may sound like straight-up science fiction, they can help alter the functionality of a living system to a great extent. In simple terms, cochlear implants and robotic prostheses can be described as cyborg devices and microchipping cat or dog will make it a bionic pet. 

Biotechnology trends #5: Miniaturized bioreactors

Advances in microfluidic fabrication capabilities have compelled biotech companies to design flow bioreactors at the microscale. Such bioreactors incorporate enzymes to produce highly pure products with minimum cost and biological investment, while ensuring portability and ease of operations. This trend of designing devices with unusual flow paths is expected to be on the rise in the biotech sector.

Biotechnology trends #6: Increase in regulatory demands

The biotech industry is characterized by a rapidly evolving regulatory landscape and growing concerns about transparency for both stakeholders. As a result, the biotech sector has been subjected to increased scrutiny and more stringent monitoring guidelines. For instance, the Physicians’ Payment Sunshine Act in the US requires disclosure of physicians having tie-ups with pharma companies. Furthermore, the FDA has started a regulatory body for Laboratory Developed Tests (LDTs).

Analyzing the latest biotechnology trends is imperative for companies to sustain themselves in the market. Request a free demo to know how our experts can help you analyze the impact of newly developing biotechnology trends.

Biotechnology trends #7: Better investments

Supporting industries such as health services companies in the biotech sector will continue to shine brightly for investors. Billions of dollars are being invested in the healthcare industry as a whole and higher valuations are expected to stay consistent over the next few years despite experiencing a rough financial year.

Biotechnology trends #8:  Rise of generics

Very soon, it is expected that the number of generics and biosimilars in the market will continue to grow. Blockbuster drugs that can be replaced by traditional small-molecule generics are certain to face strong challenges from generic competitors over the next 10 years. Also, it will force innovators to accelerate the search for products that can reduce the healthcare costs for patients.

To know more about biotechnology trends 2019 influencing the biotech sector, request more information here!

purchasing strategy

Why an Effective Purchasing Strategy Vital for the Growth of Businesses

Companies can find themselves in a  much better position if they are armed with effective purchase-making skills. Implementing an effective purchasing strategy helps companies to make smart purchasing decisions and increase their sales. In addition, strategic purchasing operations offer a competitive advantage and helps develop supply relationships between manufacturers, suppliers and retail businesses. To help companies know more about such benefits, we have compiled a list of benefits that companies can achieve by implementing an effective purchasing strategy.

Want to know how implementing an effective purchasing strategy can increase the sales of your company? Request a free proposal to access our complete solution portfolio for free.

Benefits of Implementing a Purchasing Strategy

Purchasing strategy benefit #1: Minimizes spend

An effective purchasing strategy allows companies to purchase goods and services at the best price. It also helps companies to make the most of discounts that are often forgotten. In addition, a good purchasing strategy provides better visibility into the purchases made by the organization and shows how the company funds are spent. This enables businesses to leverage additional cash flow by extending payment terms if needed.

Purchasing strategy benefit #2: Optimizes suppliers

Companies usually have a list of suppliers who can provide goods that the company will need to meet their business needs. This simply means that the suppliers are unable to meet the company standards and terms are discarded. This is one of the fundamental purchasing strategies that companies can abide by to gain financial benefits. The biggest advantage of the purchasing strategy is that only the best suppliers are left in the process.

Wondering how purchasing strategies can help you gain a competitive advantage?

Get in touch with our experts to know the benefits of different purchasing strategies in supply chain management.

Purchasing strategy benefit #3: Builds supplier relationships

Developing a purchasing strategy allows companies to develop a long-term relationship with suppliers. Better collaboration helps companies to procure products and supplies ahead of their competitors. It also provides an environment that helps suppliers and companies to communicate better and address issues in an effective manner. Many times, suppliers possess a better knowledge of products and services and can help companies gain necessary insights into in the marketplace.

Purchasing strategy benefit #4: Controls inventory

Having control over your inventory is important for businesses to address customer demands. Maintaining an inventory that is lower than required results in additional costs for companies and provides less room for newer products. This not only leads to lost opportunities but also decreases sales. Formulating effective purchasing agreements with suppliers allows businesses to have the exact products that the company needs just-in-time to make the sale.

Devising a state-of-the-art purchasing strategy requires companies to evaluate different market aspects. Request a free demo to know how our experts can help you analyze the impact of different types of purchasing strategies in real-time.

Purchasing strategy benefit #5: Improves total quality management

Total quality management is one of the most important benefits of implementing purchasing strategies in supply chain management. It allows companies to increase the quality of their products while keeping the cost of supplies at check. The lower the costs companies incur to acquire products, the more they can cut on prices to customers without impacting the profit margins of the company. Also, as products become more affordable, the sales of companies spikes.

To gain detailed insights into the benefits of purchasing strategies in supply chain management, request more information here!

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IT software

Top IT Software Procurement Trends to Watch in 2019

IT software procurement plays an essential part for any business or organization who depends on computing, software systems, and equipment to maintain daily business activities. In today’s world of digitalization, almost every business’s operation is based on the adoption of various IT equipment and software solutions. Therefore, providing a company with high-quality computer systems, effective telecommunications equipment, hardware, and software has become the foundation of a successful business.

SpendEdge’s IT software market procurement intelligence report offers actionable insights on the global spend potential, pricing strategies, and market trends influencing the category spend. Insights delivered in this procurement intelligence report will help buyers identify cost-saving opportunities while procuring IT software.  Have a look at SpendEdge’s Global IT Software Category – Procurement Market Intelligence Report, and download your free sample report now!

 

IT Software Procurement Market Overview

 

The latest IT software market procurement intelligence report from SpendEdge, highlights that the worldwide spending on IT software procurement is expected to reach USD 2.81 billion in 2019. This figure is forecast to grow with a strong CAGR of 4.67% by 2023, driven by the growing IT software demand in the banking and financial service industry. Meanwhile, the rapid digitization of medical records and the increased integration of smart devices with patient monitoring systems will drive the growth of the category spend in the healthcare sector at a CAGR of nearly 6% during the forecast period.

When it comes to software type, the increase in the demand for business analytics software is expected to be one of the major contributors to the growth of this market. The growing adoption and execution of data-driven strategy planning by the manufacturing, automobile, BFSI, and healthcare industries is also expected to drive the demand for business analytics software over the next few years.

 

Top IT Software Procurement Trends to Watch in 2019

 

The Demand for IT Services such as Consulting and System Integration is Soaring

 

The global IT software market includes several major segments such as IT services, ERP software, business intelligence software, CRM software, and database management services. The IT services segment currently has the largest market share, accounting nearly 34% of the global market spend. This segment’s majority share is owed to the rise in the need for IT services such as consulting and system integration across major end-user sectors such as BFSI and manufacturing. The demand for business analytics software is also expected to witness an accelerated growth over the next five years. This is mainly due to the fast-growing demand of data-driven strategy planning and execution across industries such as manufacturing, automobile, BFSI, and healthcare.

 

Cloud-based Software will Accelerate Spend Momentum for the Category

 

Cloud-based software is nowadays widely adopted in numerous industries due to its huge benefits For example, in the healthcare industry, the cloud-based software is vital for supporting medical records and the growing integration of smart devices with patient monitoring; In BFSI and retail sectors, cloud-based CRM software helps to identify and manage customer profiles. Meanwhile, cloud-based infrastructure as a service (IaaS) is also able to offer low-cost IT infrastructure and fast data accessibility for industries like retail, manufacturing, and BFSI. Therefore, the spend momentum of the IT software category is expected to accelerate significantly over the near future, mainly driven by the rising spend of the healthcare sector on IT software, growing demand for CRM software, larger adoption of cloud-based software, and rising demand for IaaS.

 

Asia-Pacific Will be the Fastest Growing Region for IT Software Spending

 

The IT software market in Asia-Pacific is expected to experience the fastest growth rate during the forecast period. This is mainly due to the exorbitant growth of the market in countries such as India, China, Singapore, Vietnam, and South Korea. For instance, the software market in India, which accounted for nearly 13% of the entire Asia market in 2018, is expected to grow at a CAGR of nearly 14% during by 2023. This growth is mainly driven by the rise in adoption of SaaS (Software as a service) across end-user industries, including telecom, professional services, and retail.

 

IT Software Suppliers Will Increasingly Adopt Low-coded Application Development Process

 

IT software suppliers are increasingly focusing on the adoption of the low-code application development process. This process improves speed-to-value through the support of graphical, model-driven development methodologies that enable teams to collaborate and rapidly build and deploy cloud-native applications. This platform reduces complexities in application development as it requires hand coding and is coded like a flow chart instead of line-by-line coding.

 

Customized Cybersecurity Solutions will be more Popular

 

IT software buyers are increasingly preferring advanced DDoS attack mitigation and customized web security solutions for different online security needs. IT software solutions and services require comprehensive adjustments and tuning in order to fit different requirements from different businesses, especially for the cybersecurity solutions. These customizations should take consideration of business’s project requirements, security levels, operational styles, and company’s rules. Therefore, during the IT software procurement process, buyers are expected to increasingly focus on having customized cybersecurity solutions to better protect their daily IT software usage.

Our IT software market procurement intelligence report offers actionable insights on the global spend potential, pricing strategy, and a detailed analysis of the market trends influencing category spend.

Insights delivered in this procurement intelligence report will help buyers identify cost-saving opportunities while procuring IT software.

cold chain logistics

Cold Chain Logistics Problems Facing the Food Industry

With its capital-intensive equipment and strict temperature requirements, companies specializing in cold chain logistics have started grappling with additional challenges. The recent increase in sensitivity, quality standards, and new regulations has made it difficult for food companies to ensure the shelf life of perishable food products. The changes in the food supply chain are further fuelled by the shift in consumer demands and changing regulatory norms. In this blog, we have explored key cold chain logistics problems that companies face in food cold chain management. 

Identifying and addressing cold chain logistics problems is imperative for companies to meet the demands of perishable food items. Request a free demo and gain precise cold chain logistics market insights from our experts that are needed to tackle the issues.

Top 5 Cold Chain Logistics Problems

Cold chain logistics problems #1: Global uniform standards

The absence of standard laws that outline the guideline for proper cold chain management is one of the major cold chain logistics problems facing companies today. Companies across the world function on their own and determine ways to manage perishable foods. This makes it challenging for companies in the food industry to run global operations and ensure the quality of food products. 

Also, there may be adequate resources for refrigeration in developed countries, but not in developing countries. This is a major cause of concern for companies having global supply chains, as the food product either spoils or their shelf life is substantially reduced.

Cold chain logistics problems #2: Transportation and distribution of goods

Companies delivering food items in local stores, first need to transport food items to that location. However, temperature-controlled warehouses have a fixed location and temperature. They are difficult to maintain and are not cost-effective.  A refrigerated truck or other mobile refrigeration units may be used as an alternative but cannot be considered reliable. If the shipment gets stranded in a remote location, companies will suffer heavy losses as the shelf life of products gets reduced considerably.   

Want to know how cold chain logistics problems can be addressed in a way they can provide a competitive edge?

Request a free proposal to know how our solutions can help.

Cold chain logistics problems #3: Temperature variances

Interrupted temperature is one of the top issues that cold chain logistics companies face. Exposure of perishable food products to ambient temperatures that are higher than the temperature set inside the refrigerated truck can affect the quality and safety of products.  This may happen if there is more than one delivery on the same truck, as the doors will be opened and closed many times. Companies need to ensure that the refrigerated unit is set to continuous and the pulp temperatures upon each delivery are documented properly.

Cold chain logistics problems #4: Product quality and packaging

Although the packaging of products depends on the product type, packaging methods can sometimes influence air flow rates around commodities, affecting the temperature of products in transit. Products, therefore, must be stacked to enable proper air circulation. Stacking of food products must also take into account the minimum damage to products that can happen during transit. To gain detailed insights into the cold chain logistics companies and problems, request more information here!

Cold chain logistics problems #5: Adequate Information

Data plays a critical role in cold chain logistics as the majority of food waste occurs during production and distribution. The gap in the communication among the parties involved has led to federal agencies such as the FDA demanding for the extensive collection and analysis of electronic records from food companies. Companies in the food industry need to inspect the facilities provided to their distributors and wholesalers and ensure that they are producing necessary information for cold chain records. 

Wondering how companies in the food industry can improve cold chain management? Get in touch with our experts and know more about cold chain management.

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Top Pharmaceutical Supply Chain Challenges in 2019

4 of the Hottest Trends to Watch out for in Cold Chain Logistics

Corrugated Packaging Market Trends

Top Corrugated Packaging Market Trends in 2019

As the volume of global trade and e-commerce sales continues to increase around the world, the corrugated packaging market is has been witnessing significant growth over the past few years. More and more businesses are trying to reach larger customer bases in different regional markets and having a proper logistics network is essential for ensuring safe delivery of goods. Corrugated packaging plays a vital role in preserving the status and condition of goods to be transported by providing extra strength, resilience, and protection against environmental factors. It is expected that the global corrugated packaging market will grow faster over the next few years, primarily driven by factors such as an increase in economic activities in developing countries and the growth of e-commerce industry.

Global Corrugated Packaging Procurement Market Overview

The global corrugated packaging industry is expected to witness a category spend reaching USD 250 billion by 2021, with the spend momentum accelerating at a CAGR of nearly 5% from 2017 to 2021. This increasing spend on corrugated packaging will be primarily attributed to growing demand from end-user industries such as manufacturing, automotive, processed food, and e-commerce. In the e-commerce industry, vendors are using corrugated packages for shipping goods from their facilities to customers. One of the main benefits of using corrugated packaging is the rigidity and cushioning of corrugated packaging material that can ensure products being shipped are safe. Other benefits include higher cost-efficiency and eco-friendliness.

Would like to know more about corrugated packaging procurement? 

 

Top Corrugated Packaging Market Trends in 2019

 

Do-it-yourself Corrugated Pallets

A growing number of packaging and logistics companies are now opting for do-it-yourself corrugated pallets that can be assembled in-house. Such pallets are an engineered material that does not have any defect, and additional tools or equipment are not required. Consequently, it ensures safe assembly of corrugated packaging and results in cost savings in terms of logistics.

Corrugated Point-Of-Sale Display

There has been an increasing adoption of corrugated point-of-sale display within the retail sector as it offers high visibility at a relatively low cost. Additionally, it can be easily customized and installed at any location in a retail setting. Floor display, counter display, pallet display, endcap display, and sidekick display are the different types of corrugated point-of-sale displays available in the market.

Recycling of Corrugated Packaging

As corrugated cardboard sheets can be easily disassembled and made of recyclable material, companies are putting an effort towards recycling the corrugated packages. Also, by recycling the corrugated cardboard, fibres can be produced and reused for manufacturing of new corrugated packages. Almost 90-94% of corrugated packages are recycled every year.

Corrugated Package for Premium Packaging

Corrugated packaging is finding its way in the premium packaging of expensive consumer products such as perfumes, jewellery, and gift boxes to indicate high cost and quality of the product. Companies are using corrugated packaging for premium products as they are not only cost-effective but also is light and durable. Additionally, it can also be coated with adhesives and undergo treatment to make it flame resistant.

 

Read more about the top trends for corrugated packaging along with pricing trends, procurement best practices, supplier risks, pricing insights, strategic purchasing, and procurement insights in SpendEdge’s Global Corrugated Packaging Industry – Procurement Market Intelligence Report 

ethical sourcing

Ethical Sourcing of Cosmetic Products: Why Cruelty-free Isn’t Enough Today

Most companies in the global cosmetic industry have a long-standing history of unethical product sourcing. However, with the shift in consumer demands and rise in ethical consumerism, cosmetic companies have started working towards sustainable development.  Environmental, ethical, and sustainability initiatives are all taken into account and cosmetic products are now obtained through sustainable methods.

Ethical sourcing ensures that the raw materials for cosmetic products are sourced in a responsible and ethical way. The workers involved in the process are fairly paid, treated well and the other environmental and social impacts are taken into consideration.

Devising an effective ethical sourcing policy is vital for companies selling cosmetic products. Request a free demo to know how our experts can help you gain accurate market insights.

The Reality of Ethical Sourcing of Cosmetic Products

Consumers viewpoint

Consumers of today are boycotting brands for their irresponsible actions and are shifting towards cosmetic products with a social environmental benefit. They prefer companies advocating for issues they care about and having an effective ethical sourcing policy.

According to our experts, a vast majority of customers are willing to spend more on a product if it comes from a sustainable brand. The increasing buying power of the millennial population is also expected to keep this trend growing.

Smart cosmetic companies are paying attention and preparing an ethical sourcing policy that can address the changing requirements of cosmetic products. They focus their efforts on creating vegan products with less packaging waste, using natural and safe ingredients, and taking pride in cruelty-free labels. Also, they develop a supplier code of conduct, visit their suppliers to trace ingredients, meet the growers and ensure that they work in good conditions. They also take care of the environment and convey their sourcing practices loud and clear to their consumers.

Want to know how formulating an ethical sourcing policy can help your organization gain the confidence of consumers caring about ethical sourcing?

Request a free proposal and access our complete portfolio of procurement solutions.

Companies viewpoint 

Companies often think of devising an ethical sourcing policy when they realize the need to mitigate risks, reduce operating costs, improve their brand image, and meet evolving consumer demands. Developing any kind of ethical sourcing policy and implementing it can be a massive undertaking for companies, but if done correctly, the results can significantly increase profits and the brand value in the global cosmetic industry. Leading cosmetic companies are already leading the way through sourcing and the rest of the companies need to embrace it as well. Here are a few tips that can help companies ensure ethical sourcing of cosmetic products.

Tips to Ensure Ethical Sourcing of Cosmetic Products in the Supply Chain

Be cruelty-free and vegan

Although animal testing for cosmetics is banned by the European Union, the majority of the world still permits it. The cruelty-free label guarantees that the company is neither testing its cosmetic products on animals nor using animal ingredients in the cosmetic products.

Evaluate suppliers

Companies selling cosmetic products need to do proper research on their suppliers before sourcing products. They should look for organic materials to ensure a fail-safe way to avoid nasty, artificial chemicals reaching their consumers.

Monitor supplier contracts

Make points in initial supplier contracts that audit, and spontaneous checks of raw materials used in the cosmetic products may occur. This helps brands to maintain higher standards at all times and ensure quality cosmetic products.

Ensure its a Fairtrade

Cosmetic products use many agricultural products, which are often grown by overworked and underpaid laborers. Companies in the global cosmetic industry should look for Fairtrade cosmetic products that can ensure that growers involved in the process are paid a fair amount.

Set example

Make sure that the ethical practices are being followed not just by the suppliers but also by the organization. Take a close look at the business and adhere to ethical sourcing practices that are expected out of suppliers. Companies can also learn from organizations that are successfully implementing an ethical sourcing policy. To gain detailed insights into the ethical sourcing standards and practices adopted by companies sourcing cosmetic products, request more information here!

Steps to Ethical Sourcing of Cosmetic Products

Steps to Ethical Sourcing

Benefits of Implementing Ethical Sourcing Policy for the Global Cosmetic Industry

Keeps the organization out of the courtroom

Around 25 million individuals in the world are trapped in forced labor, making ethical sourcing an important issue in different industries. Implementing an ethical sourcing policy can help companies to ensure compliance with laws enforced by different governments and focus on developing cosmetic products that can reach the uppermost levels of innovation and effectiveness.

Satisfies the rising needs of customers

Implementing an effective ethical sourcing policy can make a brand more popular and attractive to customers. It can act as a differentiating measure for companies, thus, helping them to increase brand value and create social impact. Ethical sourcing policy can further influence purchasing decisions of consumers and could be a game changer in the global cosmetic industry, as a large section of consumers comprises of millennials. 

Makes a better impression among employees  

Talent quality, talent management, and talent retention are key priorities for companies in the cosmetic industry. Ethical sourcing policy not only helps cosmetic brands create a better impression among customers and clients but also makes companies a more attractive employer. This helps companies to improve business processes, retain loyal employees, that translates to financial bonus and productivity climbs in the long run.

Wondering how you can develop an effective ethical sourcing policy and meet ethical sourcing standards? Get in touch with our experts and know how they can help you with real-time information.

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