Overcoming disruption: Ingredients database poised to ease supply chain nightmares
27 Oct 2022 --- Supply chain specialist TraceGains is launching its Gather networked ingredients marketplace to give companies access to solutions to overcome challenges to access food ingredients linked to supply logistics.
“From our point of view, the global supply chain didn’t abruptly break in 2020. It’s been under systemic pressure for a long time, and we don’t see a return to the old normal, maybe ever,” Paul Bradley, senior director of product marketing at TraceGains, tells FoodIngredientsFirst.
“Our insights into brands, manufacturers, and suppliers all actively seeking networked and ecosystem solutions for the new era confirm this, with almost 70% of our customers telling us in survey data that broadening their supply base is a priority,” he continues.
Similarly to the case of inflation volatility, companies will have to adapt to and prepare ahead for years of uncertain logistics.
“The supply chain is going to stay dynamic and unpredictable for the foreseeable future, which is why our focus is on our network and on the agility that networks create,” Bradley highlights.
Facing dynamic markets
After a beta launch in July, TraceGains Gather has incorporated 20,000 consumer companies that signed up for its free program, which, as the company explains, has created a network effect.
“TraceGains Gather is an open marketplace for information exchange, and it’s doing for the consumer goods supply chain what user-centric solutions like LinkedIn, Slack and Zoom have done for their respective industries. It empowers users to tap into a vast and growing network of people and information to collaborate without friction immediately,” says John Thorpe, principal product manager at TraceGains.
Through the program, users can access an ingredient network with detailed specification data of what companies need for reformulation and product development. It also has a cross-functional solution that automatically flags impending ingredient shortages and potential safety recalls.
The application also has more networking-like tools, such as a customer management tool where suppliers can communicate with customers on requests. And a collaborative workspace tool where users can create, view and manage shared workspaces with internal teams or external partners.
Similarly to the case of inflation volatility, companies will have to adapt to and prepare ahead for years of uncertain supply chains.Future updates
TraceGains will continue updating the app after its official release today (Oct 27).
“Gather is important to our commitment to ongoing, customer-driven innovation into 2023. We’ll be putting focus on international expansion, including global regulatory support, and continuing to drive forward on environmental, social and governing efforts,” explains Thorpe.
“We’re also continuing our commitment to the global supplier community, making it easier for buyers and suppliers to find each other worldwide and providing tools for suppliers to measure success on TraceGains Network,” he continues.
Supply chain trouble forces innovation
The company explains how supply chain disruption has forced 40% of brands to modify nearly two dozen product formulas on average.
Rising costs have also pushed 65% of businesses to raise prices and one in two companies to stop the production of certain products altogether, flags TraceGains.
Gather will help to ease reformulation challenges, says Thorpe, “this rapid access to detailed ingredient specifications enables brands to quickly design products or re-formulate existing ones amid changing market and sourcing challenges.
Supply chain problems also have forced companies to build flexible networks of various suppliers, as putting all the eggs in one basket is no longer a viable strategy.
Bradley previously told FoodIngredientsFirst that brands “can’t afford to maintain the status quo” when deciding to keep their old supply chains or opt for simplified and diverse ones.
By Marc Cervera
