How a Bakery Tackled the Shortage of Packaging Material with the Aid of Supply and Demand Analysis?

This bakery in India sells its appetizing and flavorsome cakes and beverages to its happy customers. The company soon encountered packaging disruptions that delayed the delivery of its products. The company authorities resorted to the services of a Research Nester to help rectify the demand and supply complications with the help of detailed analysis.

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An overview:

1

A start-up in India selling cakes and other bakery products was earning huge revenue owing to its demand among the customers. The company encountered a shortage of aluminum cans, cardboard, and plastic for the packaging of its products.

2

The Company was finding it hard to identify its weak spots such as packaging material supply chain disruptions. This led to a stagnancy in the growth of the market.

3

The company finally realized the need for professional guidance to navigate through these issues and present scenarios.

4

Research Nester analysts helped the company to incorporate a strategy that enabled it to manage market dynamics and alleviate packaging shortages.

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The Story

The start-up was started in July 2021. The company was generating a good amount of revenue owing to its flavors, customer demand, and instant delivery services. However, the shortage in the supply of cardboard, aluminum cans, and plastic disrupted the sales and supply of the products. The lack of aluminum cans shortened the sales of beverages as the company didn’t have any alternatives for the packaging. Moreover, the shortage of cardboard boxes boiled down the sales of cakes and pastries. In addition to this, the company relied on one manufacturer for all their packaging needs and hence found themselves knee-deep in demand and supply challenges. Finally, the company realized the need to seek professional help and requested Research Nester for the same.

The Solution:

The company lacked in-depth knowledge of the supply and demand chain which disturbed the sales of its products. The gap between consumer demand and production was larger. Research Nester offered its supply and demand analysis consulting services solution to enable the organization to understand the logistics of the market and focus on mitigating these risks.

  • An extensive understanding of food packaging materials is needed.
  • Packaging materials can be purchased in bulk to balance the shortage of materials.
  • Plastic can be recycled to control carbon emissions.
  • Updating the app to inform the customers about the availability and delivery of products.
  • Bio-pouches can be used instead of aluminum cans to deliver beverages.
  • Cardboard boxes can be recycled. The boxes can be reused again instead of buying new ones.
  • The supply chain can be diversified which means collaboration with more manufacturers to reduce the risk of shortening materials.
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Results

The company was facing supply and demand disruptions which ruptured the company’s growth. The company failed in managing packaging and consumer demand simultaneously. Research Nester analysts created a comprehensive action plan through an extensive supply and demand business analysis and offered guidance about supplier offers, the market price of its products, the margins, and the entire supply chain mechanism. Various manufacturers were brought into the limelight for packaging material. Also, the company was provided with innovative ideas for trendy and sustainable packaging methods which are in demand nowadays. The company recorded revenue growth of 20% in 2021 and 32% by 2022.

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Swara Keni

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