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FOR IMMEDIATE RELEASE
The Foundation for Continuous Improvement
CAPS Research releases the 2007 performance metrics of greatest interest to the
Diversified Foods & Beverages Industry
Tempe, AZ, July 5, 2007 – Top issues facing the Diversified Foods & Beverages Industry
include: commodity price risk, consolidation of supplier base, cost inflation, innovation
and lowering raw material cost.
In its seventh report of the industry since 1991, CAPS Research surveyed leading
Diversified Foods & Beverages organizations with combined total sales of $103.9
billion and average sales of $7.9 billion.
A few highlights from the latest report include the following:
- Average percent of employee turnover in the supply management organization during
the reporting period was 9.9 percent. Turnover was attributed to promotions and
lateral assignments within the company, retirement, resignations and eliminations
of position.
- 61.0 percent of supply management employees were assigned strategic purchasing responsibilities.
- 50.0 percent of organizations had a process in place to encourage cross-functional
job training; compared to 11.1 percent of organizations from the previous report.
- On average, 81.1 percent of spend is managed/controlled by supply management.
- 30.7 percent of organizations tracked spend in low-cost countries. Items purchased
in low-cost countries include chemicals, concentrates, dehydrated vegetables, fruit;
meat, proteins, raw and packaging materials and vitamins.
- 50.0 percent of organizations reported outsourcing the purchase of indirect goods
and 57.1 percent of organizations expect the outsourcing of indirect goods to increase.
- 76.9 percent of organizations reported the use of risk management tools. Risk management
tools were used for agricultural commodities, dairy, energy, grains, ingredients,
juice, metals, packaging, raw materials, soft commodities and sweeteners.
This report establishes a composite standard or benchmarking comparison of supply
management peer performance in the industry. To conduct this and all benchmarking
studies, CAPS Research forms an Industry Advisory Committee of industry executives
to determine the specific data to be collected. Three criteria are used: usefulness
of the resultant benchmark, availability of needed data within the supply management
organization, and comparability of data among companies. Metrics include organizational
structure, professional development, financial information, supplier relationships
and technology.
Click on the following link to review the report, "CAPS Research Diversified Foods
& Beverages Industry 2007 Supply Management Performance Benchmarking":
http://www.capsresearch.org/publications/pdfs-protected/DivFoodsBevs2007.pdf
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CAPS Research is a nonprofit research organization founded in 1986 to provide leading
research to our strategic-minded corporate sponsors and to the public. Our mission
is to work in partnership with a global network of executives and academics for
the discovery and dissemination of strategic supply management knowledge and best
practices. CAPS Research is jointly sponsored by the W. P. Carey School of Business
at Arizona State University, and the Institute for Supply Management™.
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