SpendEdge Helped F&B Client Boost Profit Margin with Market Intelligence

NEW YORK, July 26, 2023 /PRNewswire/ -- SpendEdge, a global leader in procurement market intelligence space recently engaged with an F&B client to explain the cost structure for synthetic strawberry flavoring.

The client wanted to develop a cost model after analyzing the current manufacturing technologies/processes and capital investments. It also wanted a cost components' list containing both direct and indirect cost categories.

Game-Changing Solutions:

After understanding the extent of the client's challenges, the SpendEdge team of procurement experts decided to carefully study the intricacies of each requirement carefully and create bespoke solution to suit the scope of the client's business model.

As per the procurement leader, their experts started their research by selecting an off-the-shelf formula based on one of 1,200 widely used commercially available applications of Givaudan, IFF, Firmenich, and Symrise. Special attention was given to select a flavor chemistry that closely resembles Strawberry 1 from IFF and Strawberry Pure from Givaudan.

The experts also identified specific equipment needed at each step of the production process, their costs based on the equipment's useful life and maintenance and CIP costs. Labor costs were calculated based on company-specific hourly internal billing rates of general chemists, flavor chemists, technicians, and QC analysts.

There was an assessment of data based on weightages assigned to each cost component and offered a robust cost model that was cross-checked using data model validation and scenario analysis.

Impact Delivered:

In-depth research of the formula

Calculation of all internal and external costs

Assessment of data based on weightages

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About SpendEdge:

SpendEdge is a global leader in procurement market intelligence space acts as strategic partner to over 200 global procurement organizations delivering insights on category landscape, supplier identification, negotiation strategies, price benchmarking, cost modeling, sustainability practices, and more.

Over the past 2 decades, SpendEdge has worked with procurement organizations across regions, of varying sizes and belonging to several industries. They have helped their clients solve procurement problems of varying complexities. Going above and beyond, the organization heads to the best possible extent using different methodologies to deliver timely and actionable recommendations to support decision making.

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SOURCE SpendEdge