Originally Published on: SpendEdge |A leading CPG company zeroes-in on best-fit contract manufacturers with SpendEdge
Client Overview: A significant player in the Food and Beverage sector, specializing in jams, jellies, and spreads, faced challenges amid shifting consumer preferences. The jam and jelly market experienced a downturn due to concerns regarding sugar, preservatives, and fat, leading the client to enlist SpendEdge's expertise. The goal was to identify optimal contract manufacturers, focusing strategically on the competitive US and Canadian markets.
Market Trends and Consumer Dynamics: Consumer trends in the food industry are steering towards "clean-label" products, driven by health-conscious choices amid growing concerns about obesity and diabetes. Ethical and green labels, including organic, vegan, and non-GMO, are gaining prominence. Additionally, there is an upsurge in demand for unique flavors, encouraging exploration beyond traditional fruits.
Client Goals and Challenges: The client aimed to enhance profit margins and streamline operating costs by strategically relocating cost-intensive operations to economical destinations. With a market worth exceeding USD 930 million in the US and USD 146 million in Canada, challenges encompassed intense competition, evolving consumer preferences, and the imperative for agile, cost-effective production.
SpendEdge's Strategic Approach: Our procurement specialists conducted a comprehensive analysis, evaluating factors such as plant locations, equipment types, and quality certifications to assess the operational capabilities of potential contract manufacturers. Employing a refined market research approach, our team aligned with the client's objectives, identifying key manufacturers. The findings were meticulously validated, tabulated, and presented, resulting in a shortlist of five optimal contract manufacturers.
Outcomes and Future Trajectory: The client promptly engaged with one of the chosen contract manufacturers recommended by SpendEdge. Early results showcase promising outcomes, validating the efficacy of the strategic selection process. Armed to navigate industry challenges amidst the dynamic landscape of consumer preferences, the client is positioned to seize new growth opportunities.
Strategic Sourcing for Global Impact: In a market shaped by economic shifts and global challenges, establishing a precise and strategic sourcing plan is pivotal for sustained success. SpendEdge's adept navigation of intricate sourcing landscapes ensures clients outpace industry peers, addressing challenges fueled by economic uncertainties and global events.
Connect with our Sourcing Analysts Now: Embark on a revitalized growth journey for your organization by connecting with our sourcing analysts. Leverage procurement best practices and optimal contract manufacturer selection to position your business at the forefront of global excellence.
