Across the globe, the holiday season is upon us. Whether you celebrate at home or take this time to travel, food plays a central role in holiday celebrations. Holiday parties are full of gingerbread cookies, Christmas pudding, panettone, eggnog, and other special treats. Chances are, whatever your favorite treat is, it includes an international mix of ingredients.

Ingredients ranging from sugar, wheat, and fruit to chocolate, nuts, and oil are sourced from different locations around the world. These commodities often travel thousands of miles from source to final destination. Some seasonal foods, like holiday chocolates, are only consumed during the Christmas season. Manufacturers must have the sugar, cocoa, nuts, and other ingredients in time to manufacture and distribute the products in time for the holiday.

In the US alone, Christmas candy generates $716 million in revenue each year. That is a lot of lost revenue if the products are not manufactured and shipped in time to reach retailers and homes before December 25. Demand for chocolates shaped like Santa drops significantly on December 26.

How Commodity Management Helps

Food manufacturers with a modern, best-in-class CTRM system can more easily source the ingredients they need to ensure delivery in time for the holiday season. They use sophisticated business intelligence tools to assess the best suppliers and analyze different scenarios to create backup plans if they run into difficulties. They generate the best contracts by analyzing all suppliers to determine the best partnerships and collaborate with partners in real time to ensure success.

With real-time data from across their entire supply chains, they always know the status of source ingredients and can ensure you have your favorite treats and the ingredients you need to produce homemade specialties in time for the holiday. Traceability and quality features guarantee ingredients are safe and meet the highest standards of product excellence.

Today’s Unique Challenges

Rising inflation and supply chain disruptions are impacting everyone’s holiday season. Reports of shortages range from automobiles to Christmas trees. The annual rate of inflation in the United States hit 6.8% in November 2021, the highest annual jump since 1982. Manufacturers must manage rising prices of source ingredients carefully to ensure they meet profit goals.

Choosing the best trading partners has never been more important. With supply chain disruptions around the world, manufacturers must choose commodity trading partners with viable and secure supply chains. Evaluating trading partners’ histories to determine reliability is essential. Once partners are chosen, a collaboration portal like iRely’s can help by providing a real-time, digital connection between buyers and sellers of commodities so they can work together to ensure success.

Using a modern CTRM system, manufacturers can track commodities through the entire supply chain, monitor for supply chain disruptions, and develop comprehensive plans to avoid or overcome any challenges. With real-time data and powerful BI tools, manufacturers can make sure you have the ingredients you need to create your favorite holiday treats. Your gingerbread cookies will have fresh ginger, and your chocolate chip cookies will have safe and delicious chocolate chips and nuts.

If your business buys or sells commodities, contact iRely today to learn how we can help power your success.

Have a safe and happy holiday season.