For Big & Fortune 500 Companies | 10 Strategies and Tips to Find, Negotiate and Plan for Raw Materials in 2022
Products listed are available on our website. You can schedule a call with Ingredient Depot by clicking the link in the description below. This is a free service for all your raw materials needs. And not a sales call.
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1/ With the current times, some companies are avoiding launching new products. But some are being creative and capitalizing on the lack of competition—especially companies with departments in-sync with the changing times. Ask yourself are opportunities still finding your desk?
2/ Large Corporations hate last-minute surprises. From Raw Material availability, pricing, shipping and the list goes on. Are Raw Materials a personal priority? Maybe announce your commitment internally or publicly. It could go a long way with employees or customers. Or maybe both.
3/ As the head of a large corporation, it's impossible to be everywhere. Maybe a trusted Executive could be included in all communications related to Raw Materials and manufacturing. That will support your commitment to Raw Materials being a priority. While keeping all the departments on the same page.
4/ Having more frequent communications with departments interacting with Raw Materials will create confidence. Verify how frequently are people communicating? How are they communicating? And always try and improve. If in-person is impossible, zoom on a regular schedule and try to be a fixture during those calls.
5/ Ask how can you have closer relationships with your key suppliers of Raw Materials? Review internally who and what departments are interacting with your Suppliers? Improve your relationships with suppliers of Raw Materials. And why not build new ones! When possible, visit your suppliers.
6/ Having a shortage of one Raw Material for Large Corporations could be costly. Have an Internal review of all departments interacting with Raw Materials. Increase the frequency of inventories. Verify your orders that are pending delivery. And why not check up on your blanket orders to see if changes are entered in the systems. You could review if, in the last 19 months, there are trends you are not aware of.
- Last-minute supplier change of dates.
- Multiple lot numbers versus one lot.
Those could all be signs that trouble is on the way. Look for possible vulnerabilities due to Raw Material shortages. If useful, maybe create new ways of keeping track of Raw Materials by Country of origin, brand, or product. Try not to outsource any department interacting with Raw Materials.
7/ Review supply chain performance and finding out if anyone is asking difficult questions.
- What if the Country so and so, for Raw Material so and so, what if?
- Or what do we do if a vessel, port, shipping container, a new variant, etc
- Increase frequency of internal reviews.
- Set parameters for red flags according to how the current times have affected your company or organization.
- And request that internal reviews include mentions of those newly implemented red flags.
8/ Create a plan « B » and « C » scenarios based on audits and reviews.
Example: What if a key ingredient overnight becomes unavailable?
- Should you double your on-hand inventory?
- Should you find an alternate Raw Material?
- Do you need to update compliance?
- Update some labels?
9/ Suppliers of Raw Materials are going through the same challenges you are. Personally interact with your suppliers every chance you have. Who knows? You might avoid a shortage of 1 key Raw Material. Or bypass a shipping delay. It could make or save your year. Remember your suppliers understand you.
10/ Are you confident every department is in-sync with the times? Of course, you know packaging, bottles, containers and plastic caps are also in short supply. Review all departments with the same level of scrutiny.
Remember, some large corporations are creating new brands. They are creative and advertising aggressively: Made in the USA or Made in Canada.
So back to point 1: Are opportunities still finding your desk?
It will be interesting to see how 2022 unfolds.
We do see signs that things are getting better. But some Raw Materials, Bottles, Boxes, Closures, Liners and Packaging will remain under pressure for the foreseeable future.
If we had to give two pieces of advice:
- Expect last-minute surprises.
- Plan in advance for shortages.
And if you operate a Starbucks, please stop announcing the suspension of our favourite products.
Products listed are available on our website. You can schedule a call with Ingredient Depot by clicking the link in the description. This is a free service for all your raw materials needs. And not a sales call.
Thank you for reading.