Look Beyond Ingredient Costs to Protect CPG Margins
Ingredient costs are only part of what consumer packaged goods (CPG) companies pay to bring products to market. Supplier fees, minimum purchase commitments, and renewal terms also affect their margins.
In Business Insight Journal, our founder and CEO Nithin Mummaneni explores why those agreements deserve closer attention.
His argument is straightforward: before cutting people or investment, look for waste in supplier spending. Contracts across manufacturing, logistics, agencies, consulting, and technology can go largely unchanged for years, even as market conditions and business needs shift.
Timing matters, too. Once a supplier has been selected and the business has committed, procurement has fewer options. Bringing the team in earlier, with relevant benchmarks and a clear understanding of the terms, creates more room to negotiate.
Infinity Loop’s Negotiation Intelligence connects contracts, proposals, market context, and business requirements in a deal-specific Negotiation Playbook. Procurement uses that preparation to decide what to challenge, what to protect, and how to approach the supplier.
Read Nithin’s full article, “CPG’s Next Margin Battle Will Be Won in Procurement,” in Business Insight Journal.
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