Improve profit potential with data-driven supplier benchmarking

What is supplier benchmarking?

Benchmarking is the process of comparing business practices among organizations to gain insights into specific performance metrics such as time, cost, and quality.

Supplier benchmarking involves monitoring your suppliers on a set of relevant measurements to determine how well they are meeting your company’s needs. For producers of processed meat products such as burgers, sausages and ground beef, this includes ensuring that suppliers provide trim that is free from hard contaminants and has the correct chemical lean (CL).

Why benchmark suppliers?

1. Ensure you get what you pay for

CL accuracy and the presence of hard contaminants in trim can vary greatly between suppliers. Analyzing and collecting data about the incoming raw material gives a clear overview of the exact number of contaminants in each batch received, as well as precise CL levels. These insights allow processors to verify that suppliers are delivering as promised and that they are actually getting the raw materials they paid for. And importantly, it gives the opportunity to claim for any materials that do not meet specifications.

2. Increase your negotiating power

Knowing the exact number of hard contaminants in each batch of incoming raw material, and having accurate CL measurements, allows processors to make strategic, data-driven purchasing decisions. By understanding how suppliers stack up, an organization can develop strategies to ensure they get the best possible value for money. It also provides the leverage to negotiate better pricing or prioritize reliable suppliers that consistently provide on-spec raw material.

3. Maximize processing efficiency

By collecting data and connecting valuable metrics to each supplier, over time, processors are able to divert their business to suppliers where they can be confident that raw materials will consistently meet their specifications. This is an important factor for maintaining processing efficiency. Quality raw materials minimize the need for corrective actions during the production process, such as unexpected contaminant removal and rework. It also reduces the need to interrupt the production flow to adjust CL.

The best way to benchmark suppliers

X-ray inspection has proven itself to be the best technology for benchmarking companies supplying meat trim on an industrial scale. It accurately and reliably collects data on three core elements that have the most effect on profitability and food safety in red meat processing. By scanning raw material for density variations, X-ray inspection technology is able to precisely measure fat to lean ratio, determine exact weight and detect hard contaminants such as bone, metal and glass. Processors are increasingly using X-ray inspection to verify and control the quality of their incoming meat supply in order to ensure superior end products.

SensorX Magna: The ultimate solution

SensorX Magna is a compact, high-capacity, inline system that has revolutionized the trim inspection process. At its core is Marel's industry-leading X-ray technology. It scans whole muscle and trim with unmatched accuracy to detect and remove hard contaminants such as bone, metal and glass. In addition, it gives the most accurate fat to lean ratio measurements available at full production speed.

Supplier monitoring software

Innova Supplier Monitoring Software is an integral part of SensorX Magna. The software combines with SensorX Magna’s X-ray technology to deliver the most accurate analysis of incoming raw material. It provides all the performance metrics necessary in clear and easy-to-read report format so processors can make informed decisions to realize the full potential of supplier relationships and ultimately optimize profit potential.

Learn more about SensorX Magna

We work in close partnership with our customers to develop state-of-the-art solutions. With equipment such as SensorX Magna backed by Innova software and our global network of service experts, we can help your business achieve outstanding continuous improvement in meat processing.

Get in touch with a Marel specialist for tailored advice on making your trim inspection process smarter, safer, and more profitable.