Client: Zayrah Foods
Location: Addis Ababa, Ethiopia
Type: Mid-sized FMCG brand (sauces, dry packaged foods, spreads)
Industry Term: FMCG Manufacturer
Use Case: Secure consistent, spec-matched ingredients at better prices to protect margins and avoid production delays
Background
Zayrah Foods manufactures 15+ SKUs, including tomato-based sauces, spice blends, and ready-to-eat lentil dishes. As demand grew nationally and regionally, their internal sourcing team struggled to maintain ingredient consistency and cost control — especially for imported ingredients like tomato paste, sunflower oil, and dehydrated onion. They were sourcing through 2 agents and local consolidators with poor documentation, long lead times, and no pricing flexibility.
Challenges Before Nowexo
- Rising COGS: Imported ingredients saw 20–30% price swings over a quarter
- Spec Inconsistencies: Product quality varied by shipment, affecting taste and shelf life
- Production Delays: Ingredient stockouts led to missed deliveries for supermarkets
- Weak Supplier Terms: No forward contracts or documentation protections
- Overreliance on 2 brokers: No fallback in case of disruption or negotiation breakdown
What We Did with Nowexo
- Ingredient-Level Sourcing Audit: Identified 4 inputs where Zayrah was overspending or facing spec issues
- Global Supplier Matching: Delivered verified offers from India, Egypt, and Turkey with matched specs (Brix %, viscosity, packaging)
- Documentation Review: Included COAs, samples, and shipping history for pre-approval by QA
- Forward Contract Setup: Locked pricing for 3-month volume on two high-volume SKUs (paste, oil)
- Live Logistics & Payment Support: Streamlined 3 shipments with milestone tracking, supplier-side doc collection, and delivery checks
- Reordering Flow: Built standardized, templated RFQs for internal use across the procurement team
Results
- Reduced ingredient costs by 18% across 3 core SKUs
- Eliminated spec mismatches and batch variability through verified sourcing
- Improved production planning by aligning procurement to volume forecasts
- Increased supermarket fulfillment rate from 85% → 97%
- Freed up internal team to focus on NPD and retail expansion
- Secured fallback suppliers for all 4 inputs, reducing business risk
Client Quote
"Before Nowexo, we were always fighting fires. Now we buy with structure — and our production line finally runs the way it should."
— Head of Supply Chain, Zayrah Foods
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