Tag: procurement automation

IR30

Upcoming Trends, Growth Drivers, and Burning Challenges in the Artificial Food Coloring Market

Looks and smell are the primary factors that attract people towards food. These two factors play such a significant role that it can psychologically alter human perception even if the food taste was different from how it was presented. Apart from enhancing the visual appeal of food products, artificial food coloring is also used to protect minerals and vitamins within the food during exposure to sunlight. Artificial or synthetic food colors are manufactured using chemical processes and are most commonly used in food and pharmaceutical industries. Such food coloring is available in powder, liquid, gel, or paste forms. Sunset yellow, tartrazine, carmoisine, erythrosine, Ponceau 4R, and brilliant blue FCF are some of the most commonly used food colors in the food sector. The procurement market intelligence report on global synthetic food color market identifies Europe as one of the largest markets occupying a 34% market share.

Request Free SampleTrends in artificial food coloring market

  • Today, the consumers increasingly prefer clean-label products which are free of any additives, preservatives, stabilizers, enhancers, and thickeners. Because of such preferences, consumers have prefer natural food coloring over synthetic food colors.
  • In the salmon aquaculture sector, the farm-raised salmon lack the pinkish color that is present in wild-salmon. As a result, artificial food colors are used in salmon fish fillets and in pigmenting supplements as a part of fish feed as well.
  • Colorful concoctions such as rainbow bagels and unicorn lattes in food products are possible because of innovations in the synthetic food coloring market. For instance, multi-color cereals, Marshmallow Only Lucky Charms launched by General Mills, are becoming increasingly popular among consumers.

Growth drivers in the artificial food coloring market

  • One of the largest application areas of artificial food coloring is its use in processed foods such as confectionaries, sausages, soft drinks, baked goods, cereals, and snacks. With the processed food and beverage market estimated to reach US$6 trillion by 2021, it’s a significant growth opportunity.
  • Synthetic food colors are preferred over natural food color by manufacturing companies as they are cost-effective and have relatively better heat and moisture resistant properties. Additionally, naturally derived food colors are generally not as concentrated as synthetic food colors.
  • Artificial food colors are extensively used in dairy products such as butter and yogurt. It’s a significant growth opportunity for the food coloring market as the dairy industry is expected to grow at a CAGR of 3% by 2021.

Challenges in the synthetic food coloring market

  • Growing health awareness and lifestyle changes in developed regions has resulted in a large number of buyers adopting natural colors over synthetic food colors. As a result, food companies such as Nestlé and General Mills have drastically reduced the use of artificial flavors in their products.
  • Synthetic food coloring can sometimes change the properties of the end-product. Buyers have to incur additional costs for additions or alternatives to be implemented in the end-product formulation. Such switching costs can halt the growth of the synthetic food coloring market.
  • Petroleum products, aluminum, and coal are the primary raw material used in the production of synthetic food colors. Global demand and supply lead to fluctuations in the price of such raw materials posing problems to procurement teams in the artificial food coloring market.

For more information on the synthetic food coloring market along with supply market insights, pricing models, category management, and supplier selection criteria in SpendEdge’s upcoming report on the global synthetic food color market.

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IR35

Adoption of Automation Driving the Demand in the Stackers Market

SpendEdge Procurement Market Intelligence - StackersLondon, Mar 23, 2018: The growth of port infrastructure and rise in the adoption of automation across end-user industries, such as e-commerce, packaging, logistics and warehousing, food and beverage, and mining, have driven the demand for stackers that are used for picking and moving products at operational facilities of end-users. This, in turn, is driving the growth of the global stackers market.

SpendEdge’s latest procurement research report on the global stackers market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the facility management, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

“The increased use of reach stackers at ports to move goods from the ship to the port facilities is contributing to the growth of the stacker market. Stackers help in efficient handling of goods with minimal damage during transportation from ship-to-shore.” – Tridib Bora, facility management expert at SpendEdge.

Buyers generally prefer to procure stackers that have high reliability to minimize unexpected breakdowns. However, buyers find it difficult to analyze and compare highly reliable stackers due to high customization and the availability of a large variety of models. As a result, procurement teams in this market are facing difficulty in analyzing the reliability of stackers.

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This procurement report on the glass stackers market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

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IR34

Increase in Number of Financial Regulations Driving the Revenues in Forensic Accounting Services Market

SpendEdge Procurement Market Intelligence InfographicsLondon, Mar 07, 2018: The rise in the number of financial regulations such as the SOX Act and Dodd-Frank Act has led to a rise in adoption of forensic accounting services among organizations. This is mainly because these services protect organizations from financial and legal risks. It is estimated that the rise in the number of regulations will increase the revenue of forensic accounting services market.

SpendEdge’s latest procurement research report on the global forensic accounting services market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the financial services, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

“The need to store a vast amount of data is driving buyers to use big data. This, in turn, is increasing buyers’ demand for forensic accounting services to be performed on large amount of data to identify fraudulent cases and minimize risks associated with it. This will drive buyers to outsource forensic accounting services.” – Tridib Bora, financial services expert at SpendEdge.

Buyers face issues related to vendor lock-in as it is difficult to switch from one service provider to another. High switching costs and sharing of a large amount of data with service providers have made it difficult for buyers to shift to another service provider. Such vendor lock-in issues are causing procurement challenges in the forensic accounting services market.

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This procurement report on the forensic accounting services market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

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IR33

Top Procurement Challenges Hindering the Growth of the Global Spice Market

Spices are widely used to flavor, preserve, or color the food. The earliest spice trade was estimated to be carried out at around 2000 BCE throughout South Asia and the Middle East where cinnamon and black pepper trade were carried out. Although early uses for spices were connected with magic, religion, tradition, medicine, and preservation, today it is widely used in food preparations. Spices serve several purposes in cooking and are widely used to add flavor and aroma and enhance the taste and color of food. Additionally, spices also display antimicrobial and anti-inflammatory properties and are also rich in anti-oxidants. Today, India accounts for 75% of the total production in the global spice market. Growing popularity of Asian cuisines in regions such as Europe and North America due to increasing Asian immigrant population is speculated to be the major growth driver in the global spice market. Although the growth prospects look bright for players in the global spice market, they face numerous procurement challenges when it comes to establishing themselves in the market.

Procurement challenges in the global spice market

Clove market

  • Cloves are usually adulterated with materials such as exhausted cloves, mother cloves, brown cloves, or stems for economic gains. Such type of food fraud is quite common in the global spice market. Thereby, it is essential for the buyers to make sure suppliers comply with necessary
  • The clove market is facing challenging times in terms of increasing production and labor cost. Low investment in technology and migration of skilled labor is the primary reason for such increasing costs. The widening gap between demand and supply including the increasing costs is causing problems for the players in the global spice market.
  • Clove suppliers usually source raw material from small farmers. As a result, there’s a high chance that raw materials may not pass the minimum quality standards resulting in the processing of low-quality cloves.
  • Traces of pesticides and contaminants found in the cloves is causing major procurement issues for the buyers in this market. These pesticides are found as a result of usage in the farming process to achieve better yields. It is essential to use various techniques to detect and remove any traces of pesticides or chemicals.

CTA view full reportRequest Free SampleCardamom market

  • The quality of cardamom greatly differs as buyers procure from multiple suppliers. Additionally, soil fertility, organic matter content, and climatic condition also affects the final product quality. To ensure consistent product quality, buyers should evaluate suppliers based on their track performance, supply chain capabilities, and backward integration efficiency.
  • Buyers in the cardamom spice market often expect timely delivery of products. However, it is not always possible to ensure on-time delivery due to demand-supply dynamics and climatic conditions. Delays in the delivery of raw material can significantly affect supplier’s time-to-market of the final product.
  • Identifying the origin and authenticity of the cardamom variety is often a challenging task in the spice market. As a result, suppliers face difficulty in upholding the brand trust. To assess the product origin and authenticity, suppliers are implementing comprehensive identification and tracking systems throughout the supply chain of cardamom.

CTA view full reportRequest Free SampleBlack pepper market

  • Companies usually have a huge demand for black pepper, which is fulfilled by sourcing from multiple locations and nations. However, they face difficulty in sourcing similar quality of black pepper across the nations because of differences in the extraction and manufacturing process. To tackle such issues, it is advisable that buyers engage with suppliers with worldwide presence who standardize their manufacturing process.
  • A few suppliers engage in the practice of diluting black pepper to increase its value. They do so by adding inferior or less desirable elements like mineral oil, papaya seeds, and sawdust. For instance, replacing even 10% of black pepper with papaya seeds can result in substantial profits for the suppliers. As a result, buyers should conduct a proper risk assessment to prevent adulterated materials from entering the food chain.

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IR19

Increasing Consumer Concerns About Health-Hazards of Synthetic Flavorings Driving the Growth of the Global Cinnamon Market

Cinnamon MarketLondon, Feb 05, 2018: Increasing preference for natural ingredients or flavors over synthetic flavors among end-consumers is driving the consumption of cinnamon all over the world. Additionally, growing popularity of Asian cuisines in developed regions such as Europe and North America is also driving the demand in the global cinnamon market.

SpendEdge’s latest procurement research report on the global cinnamon market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the agro commodities and raw materials portfolio, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

“Increasing consumer concerns about health-hazards associated with the consumption of synthetic flavorings used in the food industry have led to the growth in demand for natural food flavoring spices and additives such as cinnamon globally. –A Kowshik, agro commodities and raw materials procurement research specialist at SpendEdge.

Cinnamon products containing volatile oil content of more than 3% are considered as high-quality products, while cinnamon products with a volatile oil content of 0.5%–2% are considered as low-quality products. However, buyers often find inconsistency in volatile oil content of cinnamon products due to factors such as the use of improper farming techniques, adulteration, and mixing of cinnamon grades causing a significant procurement problem in the market.

Need more insights on this report?

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This procurement report on the cinnamon market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

Get unlimited access to all our reports. Get access to our reports to gain insights, platform ready-to-use procurement research reports, latest supplier news, innovation landscape, markets insights, supplier tracking, and much more at the click of a button. Request a free demo now


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IR20

Top Procurement Challenges in the LPG Gas Market

LPG gas is used as a fuel for many residential, agricultural, and commercial heat applications which includes cooking, heating, and hot water systems. However, the use of LPG gas has numerous other applications including its use as a refrigerant, propellant, vehicle fuel, and petrochemical feedstock. The consumption of LPG gas has been on the rise as it is an economical source of fuel and burns efficiently with very low combustion emissions. Although, burning LPG releases carbon dioxide, a greenhouse gas, the emission is very low per unit of energy produced compared to coal or oil. Currently, the US is the leading producer and exporter of LPG. The most common variety of LPG is bought and sold in the form of propane and butane gas. The global market for propane gas and butane gas is expected to grow at a rate of 3.1% and 2.8%, respectively, during the forecast period. (SpendEdge – Procurement Market Intelligence Report)

Challenges in the procurement of propane and butane gas

Butane gas market

  • Evaluating supplier’s compliance with labor laws and international standards regarding workplace conditions is extremely important as non-compliance may incur penalties and fines for the buyers. Conducting periodic audits of suppliers’ facilities adds to procurement costs and complexity as well acting as a significant procurement pain point.
  • Buyers need access to data associated with suppliers including plant utilization rates and total yield capacity of plants. Since the information is critical pertaining to suppliers’ operation, buyers may not always get such data. As a result, suppliers are not forthcoming with such information making it difficult for the buyers to assess suppliers.
  • In order to promote consumption of domestically produced products, several countries have levied import duties on products including butane. However, domestic prices for butane can be higher due to demand-supply imbalances and inefficiency across the value chain. Varying prices and high import duties add to the complexity of procuring the butane LPG gas.
  • Prices of butane are consistently changing due to factors such as variations in demand and supply and volatility in crude oil prices. As a result, there are different pricing for the butane LPG gas between the winter and summer seasons. Due to such price fluctuations, buyers have a hard time determining the procurement budget compelling them to hire consultants to forecast future prices, which adds to their procurement costs.

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CTA view full reportPropane gas market

  • Propane gas prices are highly dependent on the cost of crude oil, gasoline products, and diesel. The high volatility of crude oil prices leads to fluctuation in the cost of propane, thereby making it difficult for buyers to forecast propane gas prices to estimate their procurement budgets accurately.
  • The propane gas produced is generally stored in large steel containers or tanks or through underground pipelines in compressed liquid form at the buyers’ operational facilities. Storing propane in liquid form significantly increases the storage costs for the buyers in addition to the maintenance costs. As a result, buyers are facing complications in the procurement of this LPG gas in terms of added costs and efforts for storage.
  • In a bid to minimize their maintenance costs, buyers usually rent or lease the storage containers from suppliers. Consequently, signing a lease agreement makes it difficult for the buyers to switch from one supplier to the other due to the high switching costs. The switching costs include uninstallation and reinstallation of the equipment and also increases the downtime leading to operational interruptions.
  • The suppliers of propane gas usually engage with third-party vendors for the transportation and storage of propane. However, buyers are not aware of information regarding the contractual agreements between the supplier and third-party vendor in terms of the type of storage containers used and regarding compliance with transportation laws and regulations. Lacking such information makes it difficult for the buyers to abide by compliance laws and may impact their supply flow of LPG gas and quality of the product.

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IR25

Top Industrial Automation Companies in the World

Automation arrived in the industrial age as a boon to manufacturing industries as they could mass-produce their products by incurring lower costs and ensuring high-quality. Today, industrial automation is not just limited to manufacturing operations, and has expanded its application area across the logistics and supply chain function of an organization. Supply chain professionals are more reliant on enterprise process robots, which can automate an entire business process such as supply chain. For instance, robotics solutions can detect that a warehouse is full due to the lack of inventory movement and automatically alerts procurement teams to adjust to a new storage location. The notion that robots are stationery, blind, and can only perform repetitive tasks are rapidly disappearing due to new-age intelligent robots which are lighter, flexible, and can learn on their own to perform new tasks. So who are the companies behind such game-changing innovations that are contributing to the modern-day industrial revolution?

SE_Demo2Top Industrial Automation Companies

Siemens

Siemens AG is a German conglomerate company which is one of the largest engineering companies in Europe. The company has amassed over 140 years of experience in engineering, making them known for their engineering excellence, innovation, and reliability. Industry, Energy, Healthcare, and Infrastructure & Cities are the primary divisions of the company. The company caters to a wide variety of industries including aerospace, automotive, chemicals, data centers, food & beverage, oil & gas, pharmaceutical, logistics, and utilities. In the fiscal year of 2016, employees from Siemens reported 7,513 inventions within the company and submitted over 3,500 initial patent applications. Some of the well-known inventions from Siemens include gas turbine, wind turbine, steam turbine, and x-ray tube.

ABB Group

ABB Group (ASEA Brown Boveri) is a Swedish-swiss multinational corporation which operates mainly in heavy electrical equipment, robotics, power, and automation technology areas. It is also one of the leading technology and automation company providing digitally connected and enabled industrial equipment and systems. The product range of ABB includes low voltage products and systems, control room solutions, drives, high voltage products, measurement and analytics, mechanical power transmission products, and medium voltage products.

Emerson Process Management

Emerson Electric is an American multinational corporation focusing on electrical equipment. Their products are used by chemical, food & beverage, marine, life sciences,  mining, oil and gas, and power industry. They also manufacture automation solutions which can be broadly categorized into:

  • Measurement and analytical tools
  • Valves, regulators, and final control elements
  • Systems, controllers, and software
  • Other services.

Rockwell Automation

Rockwell Automation Inc. is among the Fortune 500 companies that provides industrial automation solutions and information products. The company employs more than 22,000 people and depicts expertise in connected enterprise, consulting services, industrial maintenance and support services, industrial security, industrial networks, process solutions, and safety solutions. Their core product base consists of advanced process control, design, and operations software, distributed control systems, drives, drive systems, human machine interface, industrial sensors, programmable controllers (PLC), and motion control.

Schneider Electric

Schneider Electric SE is a French multinational corporation and is a global specialist in energy management and industrial automation. The company employs over 160,000 employees and provides solutions to manage energy and process in ways that are reliable, safe, efficient, and sustainable. They provide solutions for industrial as well as home users including building automation and control, low voltage products and systems, solar and energy storage, distribution and grid automation, and critical power, cooling, and racks.

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Outsourcing services

Have Automation and AI put an End to the Era of Outsourcing Services?

The developed parts of the world have enjoyed lowered production cost and higher profits by outsourcing services from various operations like production and customer service. With countries such as China, India, and Bangladesh being the major outsourcing services hubs due to lower labor rates, companies have been able to lower their cost base considerably. On a similar note, automation and artificial intelligence (AI) have also significantly saved large chunks of the cost for the companies. As a result, many analysts and experts have predicted that the days of outsourcing services will be outnumbered soon enough, with automation and AI eating up numerous jobs. So does the rise of automation and AI bring down the curtain on outsourcing? In this article, we have explained the reasons for this question. 

How Automation and AI Impact Outsourcing Services?

Increasing Cost of Outsourcing Services

Although traditionally companies preferred outsourcing to save on labor costs, today the BPO’s charge higher fee for their services and add markups making those services expensive. Additionally, governments across the world also discourage companies from their outsourcing services and promote employment and production in home country instead. For instance, under the Obama administration, a $200 billion in tax relief and incentives law was put in place, which encouraged American companies to make an investment in their business and create new jobs. Other laws allowed businesses to write off all costs in new investment in equipment in the US.

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Loss of Control

When businesses outsource their operations, they contract the work to other company, which means sharing company details, information, and data. The company will be at the mercy of the BPO. Also, quality and service delivery from the BPOs may vary widely.

Supply Chain and Logistics Efficiency

Outsourcing services of manufacturing and production operations may seem lucrative at the beginning with all those cost savings opportunities. However, businesses may incur unanticipated costs such as hidden fees, import and export duties, shipping costs, haulage, freight costs, legislative costs, and additional taxes. Additionally, due to the complicated logistics network, the time-to-market is also significantrequest proposally increased. Consequently, businesses are looking to manufacture in the home country whenever possible by carrying out make-or-buy decisions.

Automation and AI

The most prominent factor that could signal the end of outsourcing services is the rising popularity of automation and AI. The technology is so advanced that it can eliminate the majority of human errors, and provide a quality output at a faster rate. Automation in manufacturing has been around for a long time. However, AI is threatening to replace service facing operations. For instance, with machine learning and cognitive computing abilities, companies can use chat-bots to solve customer queries and automatically reply to e-mails from the customer.


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Weekend Roundup, 10th Nov: News Across the World Affecting the Global Supply Chain

There has been a substantial leap in technological development in the field of procurement and supply chain with LevaData, a privately held company, announced the launch of its product Leva, which it claims to be the world’s first AI advisor for strategic sourcing and procurement. The product personalizes insights relating to finance, manufacturing, engineering, and procurement guiding procurement professionals through sourcing risks and savings opportunity. “Leva’s negotiation recommendations allow you to optimize decision making in the face of complex sourcing issues and large data sets.” Claims the company’s website. Additionally, itSE_Demo2 provides proactive guidelines, optimizes decision making, delivers quicker insights, and makes cognitive sourcing easier.

News Across the World Affecting the Global Supply Chain

GH$98m in Savings Through Stringent Procurement Process – Ghana

The Public Procurement Authority (PPA) has reported a savings of GH$98 million in savings through the stringent procurement process. The government agency expressed that cracking down on contract padding and procurement malpractices have improved the procurement efficiency of the organization. Some of these malpractices included tender rigging, collusion among teachers, bid or tender suppression, and coercing competitors to withhold offers and participation. The Chief Executive of Public Procurement Authority (PPA), Agyenim-Boateng Adjei, released a statement informing, “Procurement Officers and members of GIPS who misconduct themselves in their line of duties and found culpable of any ‘misprocurement’ through PPA’s procurement audits will be made to face sanctions as spelt out in the GIPS Code of Ethics and Conduct.”

SEAT ft. Telefonica – Promoting Digitalization in Automotive Industry

In an attempt to promote digitalization in the automotive industry, Telefonica has reached an agreement with SEAT to promote the use of blockchain and 5G technology in the car industry. The partnership will see Telefonica as the strategic IT supplier, with SEAT working in three key areas, namely, shared use of insights, applications of 5G connectivity, and digital transformation projects in the automotive industry. The move is aimed towards offering mobility solutions to simplify the lives of the user.

Shelves Scanning Robots in Walmart

Walmart is looking to change the face of retail procurement and supply chain with its recent move of rolling out shelf-scanning robots in more than 50 stores. These robots are approximately 2-foot tall and attached with cameras to check stock, identify incorrect pricing labels, along with missing or misplaced items. The robots are highly reliable in identifying stock outs and replenishing inventory faster, savings employees a lot of time. Jeremy King, CTO of Walmart U.S., expressed that store employees have time to scan shelves only about twice a week. Additionally, the company has also hastened the checkout process by allowing customers to scan their purchases and digitized operations like financial services and pharmacy in stores.

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