Lecithin Market Procurement Intelligence Report

The market for Food and Beverages and its sub-segments such as Lecithin are at an interesting intersection. Many companies are looking to engage Lecithin supplies in a long-term partnership to derive the highest ROI possible and creating an environment of trust and collaboration that allows for new optimization strategies.

Outsourcing of Lecithin now represents a significant part of the global spend on this category, driven by value derived and a growing number of vendors who keep innovating with new services and value propositions.

Buyers of Lecithin are insisting on hard evidence to support cost reduction. Suppliers are responding with elaborate matrix of KPIs that provide managers actionable data on supplier performance and cost savings achieved.

Trends like these and many others discussed in this report are necessitating a relook at the way Lecithin is procured and the procurement cost saving opportunities that exist.

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Lecithin. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Buyers must ensure the participation and collaboration of all related cross-functional teams (procurement, electrical, engineering, and housekeeping) in category management and planning activities. This is crucial, as these teams will be the primary end-users of the services offered by suppliers, and this step will ensure consistency in services.

Buyers should evaluate the true costs of each product and service within the scope of work for supplier, and also understand the hidden costs associated. This can help them to set accurate targets for cost reduction for their suppliers, and effectively monitor and evaluate their performance against industry benchmarks.

Buyers require industry-specific services to effectively operate their production facilities. Thus, they should opt for service providers that can offer customization and bring in years of experience in serving the needs of that industry.

Lecithin procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Lecithin procurement. Some examples include: