Expense Reduction Agrifood Solutions

Agrifood Solutions delivering Indirect, Procurement & Supplier Cost Optimisation

Overview

COVID-19 has of course had a big impact on the Agrifood sector even if the impact is slightly different than other industries.

Disruptions in the supply chains of raw materials and parts, financially unstable suppliers, challenges with production planning due to increased distance between employees, new and possible complicated legislation are of course obstacles that the Agrifood industry meets – just like any other industry.

During crisis however, the Agrifood Industry is less affected in the first period of time, simply due to the fact, that people for obvious reasons prioritize food, despite the crisis they are in.

However, historically the industry is always hit after a period of time because of two factors.

Firstly, some export markets might be affected or even disappear. Covid-19 is no different to any other crisis and companies see major changes in demands. If, as an example, a country has a large number of Covid-19 related restrictions, the professional market (Catering, Hotel/ Restaurants, Events) might be radically affected. This is the case in most countries today, and even if retail turnover starts to increase, it doesn’t necessarily cover the losses and will for sure lead to changes in production and distribution setup.

Secondly, and this was very much the case in the years following the financial crisis in 2008, consumers tend to move from up market to discount products as the price parameter plays a larger role in consumer buying behaviour.

We still have to wait to see which long term changes Covid-19 will bring in the Agrifood Industry. However, companies with a sharp supply chain, where contracts have been updated and supplier relations renewed will be best prepared to meet the challenges ahead.

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Insights
Case Studies

Download our Agrifood Solutions White Paper

Many external influences within the AgriFood industry have a substantial impact on organisational profitability but are ultimately out of the control of producers, making it hard for businesses to control their overheads. Download our Agrifood Solutions guide to discover how we can help you gain a competitive advantage for your business.

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Introduction to Expense Reduction Agrifood Solutions

Expense Reduction Analysts offer a wide range of industry solutions to help businesses all over the world. Our dedicated Agrifood Solutions team are focused on working with organisations within the Agriculture and Food Manufacturing space, and we've already helped hundreds of companies to run more efficiently and to protect their margins. Watch this short video which provides an introduction to our Agrifood Solutions. You can also download our full Agrifood Solutions guide for specific details of how we can help you.

"We are now entering, what some have termed, the global agrarian revolution. For businesses, it seems the only way to stay profitable is to understand and adapt to the trends and developments that continue to gain momentum and this means, for many, stepping into unfamiliar territory."

Agrifood Industry Insights

Growing Population

The world’s population will exceed 9 billion by 2050, and trickle up to over 11 billion by 2100 (and that’s a lot of people on one small planet). The countries that will see the greatest increases will be the poorest ones, with places like Africa expected to rapidly double in population size and continue to struggle to feed their populace.

Environmental & Geopolitical

Industrial growth will be dependent on the economic and political landscapes of the countries, and how these change over time. Governmental vision and expertise will be vital in allowing businesses in the market to develop efficient long term plans that are in line with regulations, and business & industry goals, therefore, those operating within visionary countries, with the right infrastructure to produce and exports, are likely to see more advances at more rapid pace.

Supply Chain Issues

Agrifood supply chains have diversified over time, moulding into a multi-layered system of intricate relationships that cross borders. A complicated operation such as this can pose a threat to the profitability and efficiency of a business should one cog in the system fails to meet the requirements.

Sustainable Models & Technology

In the UNEP Discussion Paper (2012), authors Moomaw, Griffin, Kurczak and Lomax highlighted that if our populations and consumption rates continue at their current rates, we will need to be supported by the equivalent of two Earths by as early as 2030.

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"The quicker businesses adopt technology and the opportunities it presents, the better placed they will be for the future."

Agrifood Solutions Case Studies

Agrico Case Study

"The cooperation with ERA was pleasant and very welcome. This allowed Agrico to take the right fleet steps." - Jan Hoogenboom, Financial Manager.
Expense Reduction Analysts were asked to relieve global supplier Agrico from the time intensive fleet management activities and provide them with a new streamlined process all while reducing overall costs. By means of a sale-and-lease-back construction, Agrico has moved to 1 lease company that also takes over the entire fleet management - with a cost reduction of almost 14%. ERA will continue to monitor this new implementation over the next 4 years to ensure Agrico continues to receive sustainable savings.

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CP Foods Case Study

"I initially thought the benefits of engaging ERA would be purely financial, but the end results are much more than cost savings. In all projects, the consultants were focused on improving our internal processes and enhancing the service we receive from our suppliers. They have helped to boost our green credentials too which is really important to us." John Vincent, FD, CP Foods. CP Foods (UK) Limited is the UK division of the worldwide CPF Group, a world class food producer dedicated to creating real food that is tailor-made to the requirements of their customers. As part of CPF Group, CP Foods (UK) Ltd is responsible for production facilities in the UK where imported produce is prepared, packaged and delivered to UK customers.

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"Digitalisation is changing the way consumers purchase products, including food, with new business models embracing direct-to consumer approaches."

Our process is simple. Our sector specialists, all with extensive knowledge of their expert areas, use the skills acquired over impressive professional lifetimes to help you negotiate a better deal in overhead spend. Find out more about who we are and how we help you.

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