How a Food Testing Equipment Company Identified Its Supply and Demand Triggers and Integrated Them for Profitable & Sustainable Growth in Food Testing Market?

A small-scale food testing equipment company turned its business to advanced products and faced novel issues in the market mechanism. The ever-evolving tendency of the demand and supply sector was restricting the business growth of the company and the food testing market. The company authorities then sought the services of Research Nester Private Ltd to integrate efficient strategies through their in-depth supply and demand analysis.

An overview:

A small-scale food testing equipment company ventured into the production of the equipment used for food testing. With a wide range of applications in various industries, there was a high demand for spectrometers. However, just analyzing historical demand patterns and supply trends of competitors was not enough to strategize growth and productivity.

The Company was unable to gauge the implications of risks such as supply chain disruptions, and price volatility of materials. The stagnancy of growth was hence noticed.

After bearing significant losses, the company authorities approached Research Nester for their services and insights.

Research Nester analysts helped the company to incorporate an efficient strategy, one that enabled them to proactively deal with their supply and demand issues.

The Story

The food testing equipment Company was founded in 2019. It had accomplished a strong market for its products in a short period. In 2020, anticipating a lucrative market scenario of advanced materials in the food testing sector, the company proceeded to take its next big step by plunging into the production of modern food testing equipment. However, the lack of high-performing raw materials suppliers led the company towards major halts in production and also into manufacturing low-quality products. The price volatility of spectrometers, and alcohol analyzers, and their limited availability impacted the company’s ability to secure a consistent, streamlined, and cost-effective supply of materials. This resulted in supply constraints for finished products. Although food testing is essential to ensure the safety of foods, it shall also be used for standard quality control. This led to overproduction of less needed materials and missed sales opportunities of the ones high on demand. The excess inventory of unsold materials resulted in financial losses to a huge extent. This major setback in the company’s new venture made the authorities turn to Research Nester for an apt solution.

The Solution:

The lack of in-depth research related to the supply and demand scenario of food testing equipment used in the food safety testing market has been a major hindrance to the company’s growth. Research Nester offered its supply and demand analysis consulting services solution to enable the organization to understand the market logistics, understanding the demand of the market, and measures to streamline the supply of the materials and products. Following are the insights provided:

Analyzing the business environment of the food testing equipment market.
Determining the targeted applications and preferences of the food testing industries and accordingly prioritizing the production of the food testing equipment.
Charting products into the inventory according to the demand.
Assessing the strengths and weaknesses of the finished products.
Brainstorming and solving all the different issues that affect the supply and demand patterns in the market.

By utilizing these analytical tools, the company could optimize its inventory, manage its suppliers, and figure out the current market trends to strategize its production.

Results

The Company was facing severe supply-demand fluctuations and very low return on investment. The growth of the company at the first-year end (2019) was marked at 25% and went down to 18% by the end of 2020. Then Research Nester was brought into the picture to help the business stay afloat and manage sustainable growth and by the end of 2022, the growth of the company was marked at 27%. The analysts created a comprehensive action plan for the company’s supply and demand business model considering its offer to suppliers, the market price of its products, the margins, and the supply chain mechanism. The prevailing demand in the market, the end-use industries with high product requirements, and the current competitive landscape were also analyzed. Furthermore, the ratio-based requirement for each depending on the finished product was also studied for better quality purposes.

How a Food Testing Equipment Company Identified Its Supply and Demand Triggers and Integrated Them for Profitable & Sustainable Growth in Food Testing Market?

An overview:

The Story

The Solution:

Results

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