Sourcing Optimisation

For sustainable savings

The consumer products industry is facing unprecedented cost challenges. The global economy is suffering from one of the deepest recessions and consumers are reducing their spending drastically. Add to this economic news other factors such as commodity price volatility, supplier financial uncertainty and food ingredient safety risks. Consumer products companies are dealing with an unenviable combination of potentially declining revenues, continued rising costs and quality concerns.

Against this backdrop, most companies have recognised that external spend is a large component of their cost structures (typically 40-70% and growing with increased outsourcing) and have aggressively attacked these costs, primarily through procurement-based initiatives.