Originally Published on: SpendEdge |A leading CPG company zeroes-in on best-fit contract manufacturers with SpendEdge
Navigating Market Challenges: Our esteemed client, a prominent contract manufacturer specializing in jams, jellies, and spreads, faced a downturn in market shares due to evolving consumer preferences in the US and Canadian markets. The shift was driven by concerns over high sugar content, artificial preservatives, and fat, prompting the need for a transformative strategy.
Strategic Procurement Intervention: To address the market challenges and improve profit margins, the client sought the expertise of SpendEdge's procurement specialists. The primary focus was on migrating cost-intensive operations to low-cost destinations, unlocking an addressable market of over USD 930 million in the US and USD 146 million in Canada.
Identifying Best-Fit Contract Manufacturers: Leveraging 18 years of perfected market research methodology, our procurement specialists meticulously evaluated factors such as plant locations, equipment types, and quality certifications. The goal was to identify key contract manufacturers with the operational and functional capabilities required for the client's ready-to-eat product line.
Seamless Collaboration and Early Success: Through a swift and efficient process, our team narrowed down a shortlist of five contract manufacturers aligned with the client's business requirements. The client promptly initiated collaboration with one of the selected manufacturers, and the early results are highly promising.
