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iD Fresh embarks on expanding supplier partnerships to widen market reach
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Thursday, 26 December, 2024, 08 : 00 AM [IST]
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Nandita Vijayasimha, Bengaluru
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iD Fresh Foods, one of the fastest-growing brands in the fresh food industry, known for its ready-to-cook products, has embarked on expanding its supplier partnerships to widen its market reach. This strategic move aims to strengthen its position in the competitive food industry and ensure the consistent availability of high-quality ingredients.
The company sources a wide range of agricultural commodities, including rice, pulses, wheat flour, whole meal flour, edible oils, and packaging materials like laminates, pouches, and IML tubs. Expanding its supplier network in these categories will not only support its scaling efforts but also enhance its ability to meet growing consumer demands nationwide.
Additionally, strengthening supplier relationships can allow iD Fresh to maintain a steady supply of raw materials, mitigate risks related to sourcing, and improve its product innovation capabilities, said the company.
As the company continues to expand its footprint across geographies, the need for a broader supplier network becomes crucial to ensure speed-to-market. Diversifying our supplier base not only enhances efficiency and reduces costs but also de-risks the business by mitigating supply chain vulnerabilities. This strategic investment supports our growth objectives while fostering stronger, mutually beneficial partnerships with suppliers, Sidhharth Saxena, chief procurement officer, iD Fresh, told FnB News in an email.
Our focus is on sourcing locally as much as possible in new geographies. This approach allows us to benchmark costs effectively, minimise inventory requirements, and reduce lead times, ultimately driving greater efficiency. As business volumes increase, existing suppliers also benefit from economies of scale, leading to cost advantages and reinforcing a win-win relationship where their growth aligns with ours, he added.
"Suppliers are integral to our operations, and we view them as business associates. As we scale production and enter new markets, we aim to collaborate with suppliers who share our vision of growth. Their role extends beyond providing raw materials—they become key contributors to our operational efficiency, cost management, and commitment to sustainability. By sourcing locally, we ensure our suppliers grow alongside us, creating a symbiotic relationship that supports both parties," noted Saxena.
On what are the key factors influencing the company’s decision-making process, Saxena stated: "When evaluating suppliers, we prioritise factors such as capacity, reliability, cost, financial stability, quality, ethical and environmental practices, regulatory compliance, and geographic location. We emphasise alignment with our core values, ensuring that suppliers adhere to high standards of quality and sustainability. By fostering open communication and maintaining a shared commitment to ethical practices, we build partnerships that are both dependable and aligned with our organisational ethos.”
"In an effort to address supply chain disruptions, we focus on diversifying our supplier base, implementing agile supply chain practices, and leveraging technology to enhance forecasting accuracy. We also invest in inventory management, create risk mitigation plans, and maintain open communication with suppliers. In an inflationary environment, we adopt a mix of spot buying and hedging strategies to manage costs effectively. By working on an open-book costing model with suppliers, we ensure transparency and offer support during periods of significant price fluctuations, enabling us to maintain stable and collaborative relationships," stated Saxena.
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