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Managing Food and Beverage Supply in a Constrained World: Segmenting Your Suppliers


A.T. Kearney

Due to a series of supply-and-demand pressures — from a growing middle class in developing markets to increasing weather volatility — the global food industry is rapidly transforming. As a result, leading food and beverage companies are rethinking their supplier relationships.

The questions they are posing in an attempt to understand these changes point to the complex nature of the issues facing the industry today.

Are current suppliers prepared to apply new technology, adequately control sources of supply, and respond quickly in today’s dynamic, global marketplace? Do sourcing agreements favor short-term price advantages over long-term supply availability and security? Are supply partnerships adeptly managing increasing regulations on food safety, sustainability, and ingredient traceability? Are the right partnerships in place to deliver innovation to tomorrow’s consumers?

In asking these questions, many food companies are now reconsidering the future of their food products portfolio, and are assessing the agricultural constraints that they might face in the coming years. In order to secure supply sources, most will have to scale up or collaborate with key suppliers.


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