A timely switch can be worthwhile
When the calculation shows more than just the price
It is tempting to assess an alternative ingredient solely on the basis of price. But in practice, security of supply is at least as important a parameter.
If a supplier experiences delivery problems, for example because the product is blocked in a port on the other side of the world, or the weather causes disruption, the lack of an approved alternative ingredient can mean that production will soon come to a standstill – or that expensive rush purchases and freight will be required.
Multiple strategies – same goal: robustness
Having alternative ingredients ready is an important measure to ensure security of supply, flexibility and peace of mind in decision-making when the market changes.
Some companies choose to approve multiple suppliers and ingredients as part of their strategy. This can be a first, second and even third supplier strategy. Others choose to secure themselves through a single partner with access to a broad, stable partner network. Still others choose a combination based on their portfolio and the market.
Regardless of strategy, alternative ingredients can be key to standing strong when the market changes. We can supply alternatives through our own partner network or work with your existing suppliers – depending on what best suits your strategy.
The consequences of waiting
We have seen examples where the price of the ingredient was competitive, but the supply suddenly became unstable. Because alternative ingredients had not been tested and approved in time, the options for action were few – and the costs of responding late were high.
As account manager Bent K. Vogensen says:
- When customers have a plan in place early on for purchasing, delivery and documentation, they are in a strong position – regardless of whether the market changes or not.
How we help you with the basis for decision-making
Together with you, we make it easier to determine the timing for approving alternatives by:
- providing input on the optimal strategy based on each ingredient's origin, production and risk profile.
- ensuring competitive commercial terms.
- supplying ingredients with full documentation so that your quality department can test and approve them without delay.
- utilising our partner network to ensure flexibility and delivery reliability.
Decide in time to react in time
It is easier to make good decisions when the pressure is not acute.
With a clear plan and approved alternatives, you are better equipped to respond when reality changes.
Would you like to start a dialogue about alternative ingredients?
Let's have a confidential dialogue about how we can strengthen your decision-making basis and security of supply – and ensure that plan B is always ready when needed.