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Supply Market Intelligence Helps a Company in Food Service Major Transform Procurement Organization into Strategic Arm

Overview of the Food Service Industry

In the past few years, the food service industry is witnessing a steady growth owing to a growing preference to eat outside, rising participation of women in the workforce and double income families – all creating new prospects for the industry. Moreover, health and hygiene conscious consumers with wellness on the mind are moving towards healthy eating options. As a result, food service players are meeting customer demands and preferences by adding healthy food options to their menu, ranging from vegan, low carbohydrates, gluten-free, lactose-free, and diabetic meals.

Let’s look at some of the vital factors that are expected to influence the growth prospects of the food service industry in the coming years.

  • Technological disruptions: With rising influence of digital media on consumer decision making, firms operating in the food service space need to adopt innovative technologies to enhance consumer experience and improve operational efficiency. Firms are also expected to deploy new supply chain frameworks that allow them to meet the needs of the consumers without sacrificing on product quality, price, convenience, availability, and efficiency.
  • Diversity in an oversaturated market scenario: Today’s customers have numerous options to select from when it comes to picking a food or beverage offering of their choice due to the improved economies and the advent of several new food service industries across the globe. Therefore, differentiating themselves from competitors by offering innovative and unique product and service offerings to stay ahead of the competition.

As a result of these factors, food service industry players are leveraging the use of supply market intelligence studies. The supply market intelligence studies help firms operating in the food service space to reduce their procurement spends and deliver a superior product and service offerings to their clients. request free proposalThese studies also assist companies in gaining an in-depth understanding of the latest trends, developments, risks, and recommendations on formulating procurement best practices across the food service industry.

The Business Challenge and Journey

The client, a leading food service industry player with multiple business units across the globe, was facing challenges in supplier failure rate due to improper risk management planning and strategies implemented. Additionally, the procurement organization was overloaded and focused on not so essential activities rather than focusing on strategic activities. Also, the supplier diversity program was not successful as an appropriate strategy was not formulated. The procurement team was unable to track the performance of their diversity goals. As a result, the client was lagging on supplier diversity metrics when compared to their competitors.

To assist the client in transforming their procurement organization into a strategic arm, the supply market intelligence experts at SpendEdge tailored a wide-ranging research methodology. The research approach comprised of primary and secondary research coupled with qualitative and quantitative data collection procedures.

During the course of this supply market intelligence engagement, the food service client divided their spend groups into four parts, and each resource was responsible for a set of groups which was also linked to set of onsite category managers. Moreover, to ensure that the offsite model was robust and dependable proper reporting methodology was formulated. The client also executed all their strategies and achieved their KRAs.

Fundamental questions answered in this supply market intelligence engagement

The Results

This supply market intelligence engagement helped the food service client implement supplier diversity programs and subsequently manage supplier risk on an ongoing basis. Additionally, the client achieved an annual savings of $20 million across business units.

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IR2

Procurement Market Intelligence helps a Food Service Client Evaluate Suppliers’ Pricing Strategies

Category Overview

Over the past five years, the food service industry has become sophisticated owing to variables such as short lifecycle of new products, limited time offers, and dynamic, flexible marketing. Additionally, factors such as the rising demand for quick food service establishments and growing convenience are boosting the growth of the food service industry across the globe. However, according to the market intelligence specialists, the shifting consumer attitude towards healthy food and rising commodity prices are contributing to the sluggish growth of the market.

As a result of such challenges, food service players have started adopting procurement market intelligence studies to evaluate suppliers’ pricing strategies and cut down the overall costs. Moreover, the procurement market intelligence solutions offered by SpendEdge also help food service clients achieve better supplier relationship with the suppliers.

The Procurement Pain Point and Insights Offered

A global food service client wanted to evaluate suppliers’ pricing strategies to cut down on the overall costs. Additionally, the client wanted recommendations to enter into a better contract negotiation with their current suppliers. The client also wanted to gain an in-depth understanding of the supply market and assess their overall procurement capability across the supply chain to serve their customers better.request free proposal

The market intelligence specialists at SpendEdge conducted an in-depth industry analysis, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies, to cater to the specific category requirements of the client.

With the help of this procurement market intelligence study, the food service client was able to evaluate suppliers’ pricing strategies, which, in turn, helped them enter into a better contract negotiation. Additionally, the client was able to evaluate their overall procurement competence across the supply chain to serve their customers better through a detailed understanding of the supply market.

Key questions answered in this procurement market intelligence study include

Food ServiceBusiness Outcome

The procurement market intelligence solution provided by SpendEdge helped the food service client identify potential supplier risks and save massive amounts in their procurement operations. Additionally, the client was suggested insights into the supply market to better serve their customers.

Want to know more about our procurement market intelligence solutions?

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IR35

Supply Chain Risk Management Study for a Food Service Client Helps Streamline the Supply Chain

Category Overview

At present, the food service landscape is strongly characterized by the increasing competition, rising costs, and rapid changes in the consumer needs. Also, with the increasing commodity prices, organizations in the food service space are relying on supply chain risk management studies to effectively manage the food inventory. In the food service sector, devising robust supply chain risk management helps the client identify the internal and external environments and robustly monitor risks. Through a robust supply chain risk management, leading businesses in the food service space can reduce long lead times, supply disruptions, and regulations. Also, businesses can gain better visibility into their supply chain processes and increase their performance.

SpendEdge’s supply chain risk management study helps leading procurement organizations in the food service space to efficiently collect, analyze, and manage supplier information. Also, businesses can gauge information on the prevailing technologies and devise plans to enhance the current supply chain performance.

The Procurement Pain Point and Insights Offered

A renowned food service client was facing predicaments understanding their supply structure and the typical risks associated with the supply chain. request free proposalThe client further wanted to understand the risks likely to impact the business, the supply trends and forecasts, and the profitability across the supply chain. Moreover, the client wanted to ensure robust production and delivery capabilities and avoid the issues related to the sales losses and further wanted to safeguard the corporate image and customer satisfaction.

To develop a comprehensive risk strategy, the client approached SpendEdge. With years of expertise in offering a plethora of services, SpendEdge’s supply chain risk management experts carried out a blended approach comprising of interviews and discussions with leading stakeholders in the food service space. Moreover, the client further collated information from a variety of proprietary sources such as paid industry databases, company presentations, industry forums, and newsletters.

After gauging complete information into the supply chain landscape, SpendEdge’s supply chain experts helped the client identify and mitigate the risks associated with supply chain processes. Furthermore, the solution helped the client collect, analyze, and manage supplier information and gain actionable insights into the potential financial issues in the food service space.

Key questions answered in this supply chain risk assessment include

SP- Supply chain risk

Business Outcome

With the help of the supply chain risk assessment solution, the client was able to identify the potential threats and devise effective technologies to gain better visibility into the spend, contract management, and compliance. Furthermore, the client was able to gain strategic real-time insights into the risk factors affecting their growth prospects.

Want to know more about our supply chain risk management solution for the food service industry?

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procurement risks

Leveraging Category Management to Develop a Better Sourcing Approach for a Food Service Client

Category Overview

Lately, the food service industry has become more complex due to variables such as dynamic flexible marketing, mobile couponing, limited time offers, and the short lifecycle of new products. Additionally, the growing consumption of convenience food among consumers and rising demand for such food service establishments are some of the factors fueling the growth of the food service industry. However, according to SpendEdge’s category management experts, it has been noted that the spike in commodity prices and shifting consumer attitude towards healthy food is expected to pose a significant challenge. As a result of such challenges, players in the food service industry have started adopting category management studies to develop a better sourcing approach and reduce maverick spends across the supply chain.

Moreover, the category management solutions offered by SpendEdge help food service industry players to reduce their overall inventory spending.

The Procurement Pain Point and Insights Offered

A leading food service industry player wanted to develop a better sourcing approach and maintain healthy relationships with their suppliers. Additionally, the client also wanted to evaluate the dynamics of the market and key category drivers influencing growth. They also wanted to gain insights into the cost structure, suppliers pricing, suppliers’ diversity, and assess competitors’ best practices.request free proposal

To address the specific requirements of the food service client, the category management experts at SpendEdge carried out a blended two step research methodology, which included primary and secondary research and a detailed assessment of company journals and case studies. With the help of this category management study, the food service client was able to develop a better sourcing approach and maintain healthy relationships with their suppliers through a comprehensive SWOT analysis. Additionally, the client was able to evaluate the dynamics of the market and drivers and gain insights on the suppliers’ pricing and cost structure across the supply chain. This helped them assess competitors’ best practices.

Key questions answered in this category management study include

food serviceBusiness Outcome

This category management study helped the food service client develop better sourcing approach across the supply chain. Additionally, the client was suggested with tools to enhance their supplier selection decisions and reduce source-to-pay cycle times. This helped them build effective sourcing strategies and maintain better relationships with their suppliers.

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School and office accessories on wooden background

Supply Chain Assessment Helps a Food Service Client Increase Profitability Across Their Supply Chain

Category Overview

Over the years, the food service industry has been distinctively complex considering the variables such as limited time offers, mobile couponing, dynamic flexible marketing, and the short lifecycle of new products. Moreover, the growing consumption of meals at food service establishments, rising demand among consumers for different types of foods, and convenience offered by such services are some of the recent trends influencing the food service industry. However, the food service industry is vulnerable to changes such as a spike in commodity prices and shifting consumer attitude towards health and nutrition may pose a significant challenge.

As a result of such challenges, companies in the food service sector have started adopting supply chain assessment studies as it helps food service companies implement lean practices throughout the business and focus on customer value delivered with reduced wastage in its processes and systems. Also, such solutions help clients gain profits across the supply chain.

The Procurement Pain Point and Insights Offered

A global firm wanted to plot a model, assess their current maturity, and create a roadmap for improvement across their supply chain. The client also wanted to assess their supply chain capabilities and determine how efficiencies and performance compare to best practices from their competitors in the industry. Additionally, they wanted to gain a deeper understanding of the major areas of spend across their office locations through a supply chain assessment study.request free proposal

The supply chain assessments experts at SpendEdge carried out a comprehensive research methodology comprising of primary and secondary research and qualitative and quantitative data assessment to cater to the specific category requirements of the client. During the course of this supply chain assessment study, the client gained insights on purchasing patterns and superior sourcing strategies that were adopted by their competitors.

Additionally, SpendEdge provided benchmarks across their major spend areas and supply chain structure. As a result, the food service client gained a deeper understanding of the profitability across supply chain.

Key questions answered in this supply chain assessment study include

supply chain assessment

Business Outcome

The supply chain assessment study helped the client achieve substantial savings over the previous years. Additionally, SpendEdge’s supply chain assessment study helped the food service client reduce their overall costs to manage suppliers through supplier rationalization. Furthermore, they gained insights on numerous pricing models and cost components, which helped them increase profitability across the supply chain.

Want to know more our supply chain assessment solutions?

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