| Client | Industry | Solution |
| US-based CPG Giant | Retail, CPG, F&B, and Packaging | Streamline Contract Manufacturer Selection Process |
Key highlights
- Declining market shares and rising consumer apprehensions posed challenges for the client
- Concerned about fierce competition and the low-profit margins
- There was an increased focus on clean-label and health-conscious product lines
- Demand surged for unique flavors and unconventional fruit-based products
Industry overview
Supply market intelligence encompasses the entire flow of products, information, and finances. The effectiveness of a supply market intelligence strategy significantly impacts an organization’s competitiveness by influencing working capital needs, product costs, and market delivery speed. Our specialized expertise lies in providing robust, real-time sourcing and procurement solutions. These solutions empower category managers with valuable insights, enabling them to strategically align their supply chain management processes to meet business goals and ensure optimal value delivery.
Identifying the bottlenecks – Intense competition and low-profit margins
Confronted with fierce competition and the imperative to enhance profit margins, our client sought assistance from SpendEdge to navigate their business challenges. A pivotal strategy involved relocating cost-intensive operations to more cost-effective locations in states/provinces such as Mississippi, West Virginia, Arkansas, Louisiana, and New Mexico in the US; and New Brunswick, Newfoundland and Labrador, Manitoba, Saskatchewan, and Alberta in Canada. With an addressable market exceeding US$1 billion in the US and Canada, it was essential for the client to streamline their manufacturing processes and cut operating costs while maintaining product quality. By collaborating with SpendEdge, the client aimed to identify solutions that would secure their sustained success in the highly competitive Food & Beverage (F&B) and Consumer Packaged Goods (CPG) industries.
Challenges faced
- Fierce competition and the pressure to enhance profit margins
- Necessity to relocate cost-intensive operations to more economical locations
- A market opportunity worth more than US$1 billion in the US and Canada
Overcoming the bottlenecks –Enhancing operational efficiencies and profit margins
Our team at SpendEdge played a crucial role in assisting the client to optimize their contract manufacturer selection process. We meticulously identified key contract manufacturers suitable for the client’s ready-to-eat product line using our extensive expertise and rigorous market research methodologies.
We conducted an in-depth evaluation of several critical factors, including the locations of contract manufacturing plants, the types of equipment used, and the quality certifications held by each potential CPG contract manufacturer for CPG companies. This thorough assessment allowed us to gauge each candidate’s operational benefits, efficiency, and functional capabilities. Based on this comprehensive analysis, we provided the client with a shortlist of five high-potential contract manufacturers. This streamlined approach facilitated timely decision-making and empowered the client to engage with their preferred manufacturer quickly and efficiently.
By leveraging our strategic insights and market intelligence, we enabled the client to establish a partnership with a manufacturer that aligned with their quality standards and operational goals. The company opted to streamline production through contract manufacturing and outsourcing to enhance efficiency and focus on core competencies. This collaboration not only ensured a seamless production process but also positioned the client for success in the competitive ready-to-eat food market.
Choosing the right contract manufacturer
- Our procurement specialists carried out extensive research and analysis tailored to the client’s specific business needs. This process involved a detailed examination of potential contract manufacturers, ensuring that each candidate met the client’s operational and quality standards
- The research findings were meticulously validated and organized, then presented to the client in a clear and actionable format. This thorough presentation significantly expedited the selection process, allowing the client to make informed decisions swiftly
- SpendEdge also recommended negotiation strategies and contracting best practices
- As a result, the client quickly engaged with one of the contract manufacturers from our carefully curated shortlist. Initial outcomes from this partnership have been highly promising, indicating a successful collaboration that meets the client’s expectations and business goals
Breakthrough results
The client effectively tackled their business challenges, leading to the following achievements:
| Impact Delivered | Strengthened Position | Streamlined |
| More than US$1 billion addressable market value in the US | in the F&B and CPG industries | contract manufacturer selection process |
