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In this episode, Eran Mizrahi, co-founder of Ingredient Brothers, discusses the importance of supply chain in the CPG industry.
He shares the origin story of Ingredient Brothers and highlights the challenges faced by legacy manufacturers in the DTC world.
Eran also discusses the headaches in the supply chain for CPG brands, such as managing compliance and working with multiple suppliers. He provides insights on how smart companies can bring down costs in their supply chain to optimize margins.
Eran shares trends in ingredients and product development, emphasizing the importance of simplifying ingredient labels. He concludes with advice for starting a CPG brand and highlights the services provided by Ingredient Brothers in optimizing supply chains.
Takeaways:
Supply chain is an important aspect of the CPG industry, and it is crucial for brands to understand and optimize their supply chains to scale their products effectively.
Legacy manufacturers often struggle to adapt to the D2C world, which requires more nimbleness and responsiveness to smaller quantities and specific customer needs.
CPG brands face challenges in their supply chains, including managing compliance, dealing with logistics and shipping costs, and working with multiple suppliers.
Smart companies can bring down costs in their supply chains by focusing on specific areas for cost reduction, running a diligent process to identify alternative suppliers, and gathering data to track market trends and pricing.
Trends in ingredients and product development include the use of coconut-based products, allergen-free options, and reducing ingredient labels to meet consumer demands.
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