Baking & Snack - September 2020 - 51

FORMULATION
Sourcing & Supply Chain

GLOBAL
WEB OF
INGREDIENTS
Secondary suppliers, domestic stockpiles and traceability
shore up an international supply chain under stress.
by M. Hikmet Boyacioglu
In North America, bakery products including bread,
pastries, dessert mixes, frozen baked goods and cakes
sales reached $65.2 billion and $65.9 billion in 2018
and 2019, respectively, according to Euromonitor
International. In 2018, production of these required
sourcing of 14.9 million tons of ingredients. Likewise,
Zion Market Research reported that global demand
for baking ingredients market was valued at more than
$11.8 billion in 2015 and is expected to reach above
$15.7 billion in 2021.
For a variety of reasons, many companies are reconsidering whether they should be buying products from
international sources. In terms of the baking industry
- besides the main advantage of cost-savings - there
are other reasons to globally source, including consumer demand, global competition, global attitudes of the
company and proximity to raw materials that may be
unavailable domestically.
A typical food supply chain is made up of six stages:
sourcing of raw materials, production, processing and
packaging, storage, wholesale distribution, and retail redistribution to consumers, according to Jad Asaad, marketing manager, Horeca Trade LLC.
An international supply chain, however, differs from

local or domestic sourcing. Global sourcing, as defined
by Masaaki Kotabe, professor at Temple University,
Institution of Global Management Studies, is managing
R&D, manufacturing and marketing on a global basis
as well as identifying which production units will serve
which markets and how components will be supplied
for production. This enables a company to leverage its
own advantages and the competitive edge of different
countries.
Keith Harris, PhD, associate professor of Agricultural
Economics, Kansas State University, shared how this
played out when he was the director of corporate
purchasing for a multinational food company in the
United States.
"With globalization, capital, information and transportation moved farther and faster and enabled the purchasing department to extend its supplier network, reduce the
total cost, source alternatives and substitutes, particularly
for spices and ingredients," he explained. "The food industry recognized the expanded capabilities of international purchasing and, as a result, motivated a different
set of purchasing criteria related to meeting demand from
consumers conscious of environmental conservation, sustainability, labor rights and genetic engineering practices."

Traceability tools enable
bakers to track their
ingredients from farm to
finished product.
©Surapol Usanakul stock.adobe.com

www.bakingbusiness.com / September 2020 Baking & Snack 51


http://stock.adobe.com http://www.bakingbusiness.com

Baking & Snack - September 2020

Table of Contents for the Digital Edition of Baking & Snack - September 2020

editorial - When 'unprecedented' becomes the status quo
newsfront
In brief/people
trends snapshot news
Special report: Incubators -- A brand-new beginning
Operations: Muffin Town -- New rules for schools
Trends: Pretzels -- back in the spotlight
Formulation: Fats & oils -- Dialing into functionality
Formulation: Sourcing & Supply Chain -- Global web of ingredients
Equipment: Pizza tech -- Piling it on
Equipment: Mixing -- Keep your cool
Equipment: Finishing -- Seeking the perfect touch
Operations: Augmented & virtual reality -- Playing pretend
Equipment: Bottlenecks -- Breaking the bottleneck
Events
Innovations
Featured technical expert
Ingredients & formulating
Equipment & packaging
Patents
New on the shelf
New product spotlight -- A change of pace
Baking & Snack - September 2020 - 1
Baking & Snack - September 2020 - 1
Baking & Snack - September 2020 - 2
Baking & Snack - September 2020 - 3
Baking & Snack - September 2020 - 4
Baking & Snack - September 2020 - 5
Baking & Snack - September 2020 - 6
Baking & Snack - September 2020 - 7
Baking & Snack - September 2020 - 8
Baking & Snack - September 2020 - 9
Baking & Snack - September 2020 - editorial - When 'unprecedented' becomes the status quo
Baking & Snack - September 2020 - 11
Baking & Snack - September 2020 - newsfront
Baking & Snack - September 2020 - 13
Baking & Snack - September 2020 - 14
Baking & Snack - September 2020 - 15
Baking & Snack - September 2020 - In brief/people
Baking & Snack - September 2020 - trends snapshot news
Baking & Snack - September 2020 - Special report: Incubators -- A brand-new beginning
Baking & Snack - September 2020 - 19
Baking & Snack - September 2020 - 20
Baking & Snack - September 2020 - 21
Baking & Snack - September 2020 - 22
Baking & Snack - September 2020 - 23
Baking & Snack - September 2020 - Operations: Muffin Town -- New rules for schools
Baking & Snack - September 2020 - 25
Baking & Snack - September 2020 - 26
Baking & Snack - September 2020 - 27
Baking & Snack - September 2020 - 28
Baking & Snack - September 2020 - 29
Baking & Snack - September 2020 - 30
Baking & Snack - September 2020 - 31
Baking & Snack - September 2020 - 32
Baking & Snack - September 2020 - 33
Baking & Snack - September 2020 - 34
Baking & Snack - September 2020 - Trends: Pretzels -- back in the spotlight
Baking & Snack - September 2020 - 36
Baking & Snack - September 2020 - 37
Baking & Snack - September 2020 - 38
Baking & Snack - September 2020 - 39
Baking & Snack - September 2020 - 40
Baking & Snack - September 2020 - 41
Baking & Snack - September 2020 - 42
Baking & Snack - September 2020 - Formulation: Fats & oils -- Dialing into functionality
Baking & Snack - September 2020 - 44
Baking & Snack - September 2020 - 45
Baking & Snack - September 2020 - 46
Baking & Snack - September 2020 - 47
Baking & Snack - September 2020 - 48
Baking & Snack - September 2020 - 49
Baking & Snack - September 2020 - 50
Baking & Snack - September 2020 - Formulation: Sourcing & Supply Chain -- Global web of ingredients
Baking & Snack - September 2020 - 52
Baking & Snack - September 2020 - 53
Baking & Snack - September 2020 - 54
Baking & Snack - September 2020 - 55
Baking & Snack - September 2020 - 56
Baking & Snack - September 2020 - 57
Baking & Snack - September 2020 - 58
Baking & Snack - September 2020 - Equipment: Pizza tech -- Piling it on
Baking & Snack - September 2020 - 60
Baking & Snack - September 2020 - 61
Baking & Snack - September 2020 - 62
Baking & Snack - September 2020 - 63
Baking & Snack - September 2020 - 64
Baking & Snack - September 2020 - 65
Baking & Snack - September 2020 - 66
Baking & Snack - September 2020 - 67
Baking & Snack - September 2020 - 68
Baking & Snack - September 2020 - Equipment: Mixing -- Keep your cool
Baking & Snack - September 2020 - 70
Baking & Snack - September 2020 - 71
Baking & Snack - September 2020 - 72
Baking & Snack - September 2020 - 73
Baking & Snack - September 2020 - 74
Baking & Snack - September 2020 - 75
Baking & Snack - September 2020 - 76
Baking & Snack - September 2020 - 77
Baking & Snack - September 2020 - 78
Baking & Snack - September 2020 - Equipment: Finishing -- Seeking the perfect touch
Baking & Snack - September 2020 - 80
Baking & Snack - September 2020 - 81
Baking & Snack - September 2020 - 82
Baking & Snack - September 2020 - 83
Baking & Snack - September 2020 - 84
Baking & Snack - September 2020 - 85
Baking & Snack - September 2020 - 86
Baking & Snack - September 2020 - Operations: Augmented & virtual reality -- Playing pretend
Baking & Snack - September 2020 - 88
Baking & Snack - September 2020 - 89
Baking & Snack - September 2020 - 90
Baking & Snack - September 2020 - Equipment: Bottlenecks -- Breaking the bottleneck
Baking & Snack - September 2020 - 92
Baking & Snack - September 2020 - 93
Baking & Snack - September 2020 - 94
Baking & Snack - September 2020 - 95
Baking & Snack - September 2020 - Events
Baking & Snack - September 2020 - 97
Baking & Snack - September 2020 - 98
Baking & Snack - September 2020 - Innovations
Baking & Snack - September 2020 - Featured technical expert
Baking & Snack - September 2020 - 101
Baking & Snack - September 2020 - Ingredients & formulating
Baking & Snack - September 2020 - 103
Baking & Snack - September 2020 - Equipment & packaging
Baking & Snack - September 2020 - 105
Baking & Snack - September 2020 - 106
Baking & Snack - September 2020 - 107
Baking & Snack - September 2020 - 108
Baking & Snack - September 2020 - Patents
Baking & Snack - September 2020 - New on the shelf
Baking & Snack - September 2020 - 111
Baking & Snack - September 2020 - 112
Baking & Snack - September 2020 - 113
Baking & Snack - September 2020 - 114
Baking & Snack - September 2020 - 115
Baking & Snack - September 2020 - 116
Baking & Snack - September 2020 - 117
Baking & Snack - September 2020 - 118
Baking & Snack - September 2020 - 119
Baking & Snack - September 2020 - 120
Baking & Snack - September 2020 - 121
Baking & Snack - September 2020 - New product spotlight -- A change of pace
Baking & Snack - September 2020 - 123
Baking & Snack - September 2020 - 124
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