Co-manufacturing for new products: how to identify profitable market niches
Did you know that while many co-manufacturers struggle to fill their production lines, others are seizing profitable opportunities simply because they know how to identify the right niches? In the CPG (consumer packaged goods) market, the key to scaling efficiently is not just production capacity, but knowing where and how to invest that capacity. Identifying […]
How market intelligence can help find better suppliers in the consumer packaged goods industry
Buying wrong is costly. And we’re not just talking about money. A poorly chosen supplier can delay launches, compromise quality, create channel disruptions, and even damage a brand’s reputation with the end consumer. For midmarket CPG companies operating under margin pressure and limited resources, there’s no room for decisions based on gut feeling. In this […]
How co-manufacturing capabilities are helping suppliers monetize idle capacity
In Brazil, nearly 30% of the installed capacity in the CPG industry remains idle. Much of this capacity belongs to suppliers that still operate invisibly in the market, without leveraging the full potential their infrastructure offers. Co-manufacturing is no longer just a tactical on-demand production service. Today, it serves as a showcase where suppliers of […]
What is consortium buying and how procurement teams can benefit from it
Consortium buying is when a group of companies work together to pool their capacities and jointly buy their services, products and ingredients. It’s as if you went into a store and the sales assistant offered you a special deal because you and your friend were buying the same product together.
This purchasing model is the secret sauce behind the most innovative and cost-effective CPG brands. Procurement teams are using the collaborative model to get ahead in the market. Let’s analyze how procurement teams can use it to their advantage.
Sourcing vs. strategic sourcing
Did you know that 29% of companies relying on traditional sourcing are more vulnerable to supply chain disruptions? This could change with strategic sourcing.
Think about what that means: nearly a third of companies could be caught flat-footed the next time a crisis hits, just like we saw during the global supply chain shocks of 2020. If you’re still using traditional sourcing methods in the highly competitive Consumer Packaged Goods (CPG) industry, you may be missing out on long-term savings, innovation, and —most crucially —supply chain resilience.
Produce or outsource: considerations to decide
Halo Top Creamery, a low-calorie ice cream brand, faced a critical decision early in its development: whether to invest in building their own production facility or to outsource with a co-manufacturer. Their choice played a crucial role in their meteoric rise to become one of the **best-selling ice cream brands in the United States.** Founded […]
How to Calculate and Monetize Available Capacity
In the rapidly evolving landscape of modern manufacturing, the efficient utilization of production capacity is not just a matter of operational necessity but also a strategic opportunity for growth and diversification. The concept of available capacity in a manufacturing setup refers to the unused portion of the production capability that can be leveraged to meet […]
ESG vs. Savings: Where to Place Your Bets for Sustainable Success?
In a world where sustainability is no longer a buzzword but a fundamental aspect of doing business, the choices we make in procurement have far-reaching implications. Last week, we had the privilege of participating in the 20th Live University Procurement and Sourcing Forum, in São Paulo, Brazil. The event gathered industry leaders to explore the […]
The Innovation Paradox in CPG
Innovation is a double-edged sword in the consumer packaged goods industry. While it is a driving force behind growth and competitiveness, it also presents a unique paradox. This paradox stems from the need for CPG companies to balance innovation with the inherent challenges of the industry, such as regulatory constraints, consumer preferences, and supply chain […]
What is co-manufacturing, co-packer and co-man?
In today’s competitive business environment, companies are constantly looking for ways to save money and improve efficiency. One way to do that is by outsourcing manufacturing, product development, and other business functions to third-party companies. There are many different terms used to describe these third-party companies, including co-packers, co-manufacturers, and co-mans. In general, these companies […]
