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Analyzing the Value-Chain and Reducing Costs by $15M within Three Months for an Olive Oil Manufacturer - SpendEdge’s Category Management Strategy

January 3, 2019

LONDON--(BUSINESS WIRE)--Jan 3, 2019--SpendEdge, a well-known procurement intelligence solution provider, has announced the completion of their latest .

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190103005410/en/

Category management strategy for an olive oil manufacturer. (Graphic: Business Wire)

The next few years are expected to remain critical for oil manufacturing companies due to the decline in the consumption of olive oil in traditional markets. Excess oil production coupled with dwindling demands is escalating the pressure on companies in the olive oil industry to focus on the cost-saving aspects of procurement. Moreover, the quality index possesses problems for oil manufacturing companies in the international market. The quality index for olive oil is measured on the basis of levels of acidity or peroxide and the methods for determining the appropriate level of the index are different in different countries. To add on to the problem, there are discrepancies between the names and definitions of each grade of olive oil among the olive oil manufacturing companies in the global market.

According to the procurement experts at SpendEdge, “The aggressive expansion plans adopted by several olive oil manufacturers is disrupting the global supply chain in the market space.”

The Business Problem: The client is one of the leading oil manufacturing companies in the olive oil industry with multiple manufacturing units spread across the United States. They were facing numerous challenges in achieving growth and addressing margin problems. This forced the client to collaborate with SpendEdge and leverage its expertise in conducting a systematic analysis of their sales productivity, cost-effectiveness, and customer metrics. They also wanted to identify and negotiate with key suppliers in the olive oil industry that required an effective category management process.

Protection policies and trade wars among the companies in the olive oil industry are disrupting the global supply chain. To know how a new procurement and category management strategy can help you to meet your business goals and objectives, .

The Solution Offered: SpendEdge’s team of experts helped the client to devise a market specific category management process. The process developed provided the olive oil industry client with crucial information to analyze the value-chain and identify effective pricing strategies. They were also able to gain a comprehensive view of various supply chain categories in the olive oil industry and improvise the basis for their negotiations. This increased their sales significantly and helped them cut down costs by $15 million within three months. Additionally, the category management strategy helped them to save an additional $5 million across different categories.

Want to know how companies in the olive oil industry are leveraging a category management process to deal with disruptions in the global supply chain and reduce increasing procurement costs?

SpendEdge’s category management strategy helped the client to:

Reduce costs by $15M within three months. Identify effective pricing strategies. Analyzing the available datasets can be a difficult task for companies in the olive oil industry and can lead to demand-supply mismatch? and see how our solutions can help you deal with sourcing and procurement solutions.

The category management strategy also offered predictive insights on:

Improving sales productivity, cost-effectiveness, and customer metrics. Analyzing the value-chain to understand the breakdown of costs for each category. Read the complete article to know more:

About SpendEdge:

shares your passion for driving sourcing and procurement excellence. We are the preferred procurement market intelligence partner for 120+ Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence reports and solutions. To know more,

View source version on businesswire.com:https://www.businesswire.com/news/home/20190103005410/en/

CONTACT: SpendEdge

Anirban Choudhury

Marketing Manager

US: +1 630 984 7340

UK: +44 148 459 9299

https://www.spendedge.com/contact-us

KEYWORD:

INDUSTRY KEYWORD: RETAIL FOOD/BEVERAGE

SOURCE: SpendEdge

Copyright Business Wire 2019.

PUB: 01/03/2019 09:45 AM/DISC: 01/03/2019 09:45 AM

http://www.businesswire.com/news/home/20190103005410/en

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