Five Top Methods for Assessing Starch Manufacturers' Performance
Originally Published on: SpendEdge | 5 Best Ways to Evaluate Starch Manufacturer’s Performance
Starch is a common carbohydrate found in staple starchy foods such as rice, potatoes, wheat, maize, and cassava. If you've ever pondered why your rice clumps together or your potatoes stick to the pan, the answer is starch. Starch is an efficient method for plants to store more energy in less space. In industrial applications, starch has a wide range of applications, including stiffening textiles, giving paper structure and shape, flavoring beverages and confections, and use in various consumer products. The most common type of starch produced by starch manufacturers is cornstarch, although maize starch, potato starch, and wheat starch are also produced. According to the SpendEdge market intelligence report, corn starch accounted for roughly 57% of the global starch production capacity by raw material in 2016.
As there are numerous starch manufacturers and suppliers located around the globe, it is essential to evaluate supplier performance and competencies prior to deciding on future contracts.
How can buyers evaluate the efficacy of suppliers in the global starch market?
Rate of Service Resolution
The ability of suppliers to respond to consumer complaints regarding the starch's quality, logistics, quantity, and packaging is a crucial indicator of supplier performance. Buyers should ideally submit such complaints via a complaint registration portal or email, to which the supplier should respond and ensure resolution within six weeks of the complaint registration date.
The ability of suppliers to respond to consumer complaints regarding the starch's quality, logistics, quantity, and packaging is a crucial indicator of supplier performance. Buyers should ideally submit such complaints via a complaint registration portal or email, to which the supplier should respond and ensure resolution within six weeks of the complaint registration date.
Effective Inventory Management Ranks Second
Buyers prefer to do business with suppliers who can effectively manage inventory and can be relied upon. The customer can evaluate the effectiveness of a supplier's inventory management using metrics such as the reduction in average lead time, which should be within one week for local suppliers, 14 to 21 days for regional suppliers, and one month for global sourcing of starch. In addition, purchasers must ensure that starch manufacturers have adequate safeguard stock in the event of unforeseen demand. Additionally, observe JIT compliance and automated inventory management systems.
Buyers prefer to do business with suppliers who can effectively manage inventory and can be relied upon. The customer can evaluate the effectiveness of a supplier's inventory management using metrics such as the reduction in average lead time, which should be within one week for local suppliers, 14 to 21 days for regional suppliers, and one month for global sourcing of starch. In addition, purchasers must ensure that starch manufacturers have adequate safeguard stock in the event of unforeseen demand. Additionally, observe JIT compliance and automated inventory management systems.
Plant Utilization Efficiency
The plant utilization rate can be used by buyers to evaluate starch manufacturers; a larger percentage indicates lower variable costs. It indicates that the customers can obtain cheaper starch from the suppliers. Ideal facility utilization in the starch industry is between 50 and 60 percent of total capacity.
The plant utilization rate can be used by buyers to evaluate starch manufacturers; a larger percentage indicates lower variable costs. It indicates that the customers can obtain cheaper starch from the suppliers. Ideal facility utilization in the starch industry is between 50 and 60 percent of total capacity.
Reduce the Turn Around Time (TAT)
In addition to assuring on-time delivery, starch suppliers must have a quick turnaround time (TAT) in order to respond to fluctuations in buyer demand without compromising starch quality. Idealistically, purchasers will stay with starch manufacturers who can meet their JIT delivery requirements. On the starch market, a turnaround time of four to five days from the date of demand is considered optimal.
In addition to assuring on-time delivery, starch suppliers must have a quick turnaround time (TAT) in order to respond to fluctuations in buyer demand without compromising starch quality. Idealistically, purchasers will stay with starch manufacturers who can meet their JIT delivery requirements. On the starch market, a turnaround time of four to five days from the date of demand is considered optimal.
Capabilities in Logistics
The transport of starch is not as simple as it appears. Differences in international transportation laws and the complexity of packaging due to exposure to heat or moisture create complications. To assess a supplier's logistics capabilities, purchasers can examine the ratio of damaged shipments to total shipments delivered.
The transport of starch is not as simple as it appears. Differences in international transportation laws and the complexity of packaging due to exposure to heat or moisture create complications. To assess a supplier's logistics capabilities, purchasers can examine the ratio of damaged shipments to total shipments delivered.
In SpendEdge's forthcoming report on the global starch market, you can learn more about the supplier assessment criteria for starch manufacturers, as well as pricing insights, sourcing strategy, key starch suppliers, procurement best practices, and cost modeling.
