Digital Transformation of procurement remains a top priority for food procurement leaders in the food and beverage sector and beyond.

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The food market is highly competitive, and reputation is everything. For food manufacturers cost planning is critical because it provides a solid overview of what is happening in the market.

Food procurement, strategic sourcing and supply chain management may be in for shake-up if these five food procurement trends take hold.

Procurement and strategic sourcing may be in for a shake-up through the introduction of digital technologies, as well as through the application of data-driven insight. Together they will help to improve purchasing performance as well as contribute to the realisation of wider business goals.

Profit improvement Plans, commonly referred to as PIPs, are a key feature of any procurement team with an eye on maintaining margins. Where the common constant is to reduce costs and drive efficiencies against inflationary headwinds, a tide of competitive threats and the expectation of new technology.

Purchase Price Variance or PPV is a metric used by procurement teams to measure the effectiveness of the organisation’s or individual’s ability to deliver cost savings.

Suppliers often use formula-based pricing models to help calculate their costs and apply this to customer contracts. But this does not always demonstrate value or support evidence-based pricing for customers. They are also unlikely to allow for the different sourcing options or apply market benchmarks for other cost inputs.