They say that it’s the flavour that people remember.
If you work in the food industry, then you know this to be true. And, if you’re reading this article right now, it’s likely you also know that significant savings are on the table from globally sourcing food products.
But at what cost to the flavour might a 40%-70% saving come? After all, if you buy something from the other side of the world and just one ingredient isn’t quite right, people might remember your flavour for the wrong reasons.
But, not to fear. Although the food industry faces several unique challenges in global sourcing, the savings on offer can be realised.
Provided of course, you have a heads-up before make any changes to your supply chain.
Logistics considerations
The majority of global sourcing is done with seafreight which takes around four weeks. But, if something needs delivered quickly, then airfreight is an option and cuts delivery times down to just a few days. However, there are a couple of problems to be aware of with airfreight:
● Cargo pressurisation
One problem is, depending on how delicate the food products you’re sourcing might be, pressurised cargo holds of air transportation can potentially affect the chemical composition (and ultimately flavour) of some products. It’s best to check up on this before you book any deliveries.
● On-airport chilled facilities
Another issue is, not all airports have on-site chilling facilities for imported food products. So, if you’re having chilled goods imported from other countries, you’ll need refrigeration trucks on standby to take the goods into an appropriately cool environment.
When shopping for overseas logistics quotes, make sure you’re clear with the supplier about the nature of the transportation so you get quoted for chilled environments as necessary.
The subjectivity of taste testing
Outsourcing any kind of manufacturing and purchasing to countries such as Asia, India or South America often raises concerns over quality. And, the third-party auditor is the best tool the global sourcing supply chain manager possesses to ensure quality standards are met.
However, with food industry, things are different. For example, if a blueprint, materials list and design brief are sent to a hardware engineer anywhere in the world, it’s easy to recreate a piece of technology with exacting precision.
Taste testing brings a large degree of subjectivity.
Your idea of what constitutes “spicy” might be something completely different to a purchasing manager or manufacturer in a different part of the world. Especially if they’re from completely different cultures.
One way around this might be to visit the country yourself. Cultural differences in both business and social etiquette must be learned. But at least you’ve experienced the product firsthand before ordering.
Special auditing considerations
The fact that food is in the “perishable goods” category means a few more special considerations. Problems you can face in the food sector include out of date protocols, counterfeit documentation and immature risk assessment.
While tools and machinery products face their own challenges with hardware, a specialist third-party food auditor is especially important here. Products must be properly tested for genetically modified (GM) ingredients and other illegal additives depending on the regulations of your country.
In many less-developed countries, counterfeit legal documentation is common, and a strong internal quality system is required which includes 3rd party inspection.
It’s tough, but not impossible.
In one recent client success story with a flavour and fragrance manufacturer, Mawson Global managed to shave $248,000 off the annual spend while maintaining high enough quality for them to become one of the leading flavour houses in Asian.
To find out more, contact one of our global sourcing specialists today and get a QuickLook Analysis to see how much you could save while working with a company who cares as much about your flavour as you do.
