The organization’s procurement model relied heavily on locally sourced products purchased through trading companies and wholesalers, as overall volume was not sufficient to justify direct importation of key items. While this approach simplified operations, it also resulted in reduced margins and weakened competitiveness, particularly in categories where ingredient costs were rising.

Although direct sourcing offered potential margin benefits, the upfront investment required for imported goods placed pressure on cash flow and introduced additional risks related to managing shelf life and inventory turnover.

We recognised that the procurement approach needed to be intentional and carefully balanced to support cash‑flow requirements while aligning with the broader product strategy.

Our decisions were guided by an analysis of sales patterns and competitive activity, which helped us identify categories where we could leverage our existing distribution footprint in markets that were not yet fully consolidated.

We focused on products at the edge of the market—areas with growth potential but limited competition—and partnered with suppliers who offered a pipeline of items that could be consolidated, launched, and streamlined across our network.

This procurement model was implemented alongside our pricing strategy, enabling us to build the volume required for more efficient sourcing while also managing shelf life and inventory turnover more effectively.

Over a three‑year period, the business more than tripled the volume of products sourced directly, strengthening its ability to manage inflationary pressures and adapt to broader industry consolidation.

The improved supplier selection framework enabled the introduction of new products that would not have been viable under the previous procurement model.

This sourcing and procurement approach delivered sustained double‑digit growth in the ingredients category and supported the scale required to further expand direct sourcing.