Honest to Goodness' procurement strategy primarily relied on locally sourced items through trading companies or local wholesalers due to insufficient volume for direct import of key lines. This approach resulted in shrinking margins and diminished competitiveness, particularly in the ingredient segment.

Despite the potential benefits of direct sourcing, the substantial investment required for imported goods placed a strain on the company's cash flow and introduced risks related to managing product shelf life.

We recognized that the procurement strategy needed to be deliberate and carefully measured to balance cash flow considerations with product strategy.

Our approach was informed by an analysis of sales and competitor data, which enabled us to identify categories where we could leverage our distribution network in markets that were not yet fully consolidated.

We targeted products at the market fringe and partnered with suppliers who had a pipeline of products that we could consolidate, launch, and streamline.

This procurement strategy was implemented concurrently with our ingredient pricing strategy, allowing us to achieve sufficient volume for direct sourcing and manage product shelf life effectively.

Over a span of three years, the business more than tripled its direct sourcing, enabling it to effectively navigate high inflationary pressures and industry consolidation.

The refined supplier selection process facilitated the launch of new products that would have otherwise been unfeasible.

This sourcing and procurement strategy drove double-digit growth in the ingredient business and supported increased volume for direct sourcing.