Top 5 Product Development Sourcing Struggles and How to Fix Them

Have you ever reached out to a supplier and asked for a sample, only to have it arrive too late to do the experiment you had planned, putting you behind on your timeline? Worse yet, it was a pilot plant or plant trial. Those times are reserved weeks or even months in advance, so losing it is a waste not just for you, but for the other team who wasn’t able to use the pilot plant or plant during your reserved slot—it’s time no one can get back. Or what about getting an ingredient sample, only to realize that it doesn’t have the proper kosher, organic or sustainability certification that you need? You had mentioned it the last time you spoke with the account rep, but he must not have written it down. Back to the drawing board… Then finally, you are ready to go into production with an approved product, but the supplier isn’t able to provide the volumes of the ingredients you need in time for ongoing production.  

You are working on a project and waiting for the results of consumer testing to adjust the characteristics of your prototypes. But the sensory meeting to review the results isn’t for another week due to key team members’ availability. Or you need to make sure that the added sugars are below 10% in the finished product and are waiting for the analytical results to confirm this before moving forward—the person who has access to the LIMS system is on vacation and you need your results now! In another instance, you’ve submitted the request for the official ingredient listing to regulatory. Regulatory has already run your listing on their offline system but it is waiting in the queue for someone to re-enter it and send it to you. Once you get the ingredient listing, you’ll send it along to packaging, but only after you are finished in the lab working on the latest samples and writing up the results. Meanwhile, packaging is stalled since they don’t have the ingredient listing or nutrition facts panel. They were told to ‘be on the lookout’ for the information to get to them, but due to lack of visibility, they aren’t even sure if regulatory has even gotten the request yet. And procurement is way down the line in terms of being notified. 

Limited visibility in the food and beverage supply chain doesn’t just impact efficiency – it also poses serious risks to compliance. Compliance becomes an increasingly challenging task when there is a lack of visibility in the supply chain. Without clear and timely communication between teams, such as regulatory, packaging and procurement, ensuring that all ingredients, labeling and safety standards meet legal requirements becomes difficult. This lack of transparency can lead to delays, errors or even non-compliance, exposing the company to potential fines, recalls or reputational damage. Effective visibility and collaboration are essential to maintaining compliance and streamlining operations. 

The lack of transparency in the process results in slower-than-necessary timelines. Moving each phase of product development along one step at a time and passing the baton manually takes time. Revamping the workflow and automating it will compress the time it takes between launch steps. By having all information available to project team members as soon as it is entered, communication of results is seamless for whoever is looking for it. This cuts out the middleman so to speak, thereby eliminating the manual component of moving information from one phase to the next, again with procurement often an afterthought or last in line causing them to have to scramble when the product is ready for production. 

Navigating global supply chains has never been more complex, and 2025 is proving no exception. Supply chain disruptions are driven by a mix of geopolitical tensions, rising tariffs, raw material shortages and the ongoing effects of climate change. These challenges are forcing restaurants and food manufacturers to rethink ingredient sourcing and adapt to an increasingly volatile environment. 

For example, increased tariffs on imported goods are driving up ingredient costs, especially for internationally sourced items. Take maple syrup, for instance – a potential 25% tariff on Canadian imports could significantly raise costs for restaurants that rely on it for menu items like breakfast sandwiches, waffles or specialty sauces. Not to mention that relying heavily on overseas suppliers introduces significant risks – not just higher prices, but delays caused by port congestion and transportation challenges. Political instability and ongoing labor shortages further complicate the landscape, leaving food & beverage businesses grappling with unpredictable ingredient availability. 

Eggs: The availability of eggs has been severely impacted in the U.S. due to widespread outbreaks of avian influenza, which has led to the culling of tens of millions of birds to prevent further spread. This crisis, coupled with rising feed costs stemming from global economic pressures and ongoing supply chain disruptions, has significantly constrained the supply of eggs. As a result, consumers and businesses alike have faced higher prices and reduced availability, affecting everything from breakfast tables to large-scale food production.  

Potatoes: Extreme weather conditions have taken a toll on potato harvest. Droughts and record-breaking heatwaves have disrupted the growing season, leading to smaller yields and lower-quality crops. On top of this, global shipping delays and logistical challenges have made it difficult to move potatoes efficiently, limiting their availability for processed products like fries and chips. Restaurants and food manufacturers are feeling the pinch as they search for alternatives or face rising costs for this staple ingredient. 

Pickles: Extreme weather driven by El Niño has hit Mexico’s major cucumber-growing regions hard, significantly impacting pickle production. With around 75% of cucumbers in the U.S. imported from Mexico, the reduced harvest has made it difficult to meet the high demand for pickles – a staple topping for burgers and sandwiches. This shortage is affecting both consumers and the food service industry, where pickles play a key role in countless recipes and menu items. 

To tackle persistent supply chain challenges, product developers are raising the bar when it comes to ingredient requirements. One key strategy is to prioritize domestic sourcing – formulating with ingredients that don’t rely on overseas shipping to avoid delays and added costs. Another approach is selecting ingredients that can be sourced from multiple suppliers, ensuring continuity if shortages arise. Additionally, developers are testing alternative ingredients early on and reflecting those options on ingredient labels, reducing the need to redo or scrap packaging if certain components become unavailable. These efforts demand greater business agility, strong cross-functional communication, added steps in the development process, and extra time to secure ingredients while expanding the supplier network. 

With the global climate and political landscape remaining uncertain, the food and beverage industry must prioritize agility and collaboration across supply chains to maintain stability. By adopting proactive strategies and investing in technology, businesses can better navigate the challenges ahead while continuing to deliver reliable, high-quality products to their customers. 

Finding out what consumers want is important. But beyond the traditional product characteristics like taste, texture, flavor, keeping qualities—which are important table stakes—more market research should be done around those less tangible product attributes like consumer attitudes toward sustainability, ‘natural’, organic, and other environmental, social and governance (ESG) factors that influence a consumer’s purchase decision. Addressing consumer opinions regarding ESG like ingredient provenance and treatment of workers should become the standard when doing market research for a new product, platform or program launch. Once you know your consumer’s preference, it is incumbent on procurement to source ingredients that meet the ESG standards like tracking CO2 equivalents in addition to functionality and ingredient characteristics.  

The Centric product lifecycle management (PLM) solution provides product developers with a tool to mitigate many of the sourcing complications that hinder product development. As a central digital hub for all product development information, it adds structure, removes inefficiencies to drive down costs and speeds time to market. See how it aids in tackling specific sourcing barriers:  

By collaborating more closely with ingredient suppliers—even going so far as treating them like an arm of your R&D in some cases, product development gets more support and in-depth knowledge of ingredient functionality since suppliers are the experts on their particular product. For example, if you are working on developing the perfect chicken sandwich bun with a specific softness and flavor, your baking ingredient supplier may produce samples with different enzymes and dough conditioners to achieve the ideal result. Giving your suppliers access to Centric PLM’s vendor portal so they can enter the results of their own testing, informs your product development. Not only that, it goes both ways; they will know when you are ramping up for production, and close collaboration eliminates surprises when that first PO is placed. 

Centric PLM gives each of the different functions visibility into the entire product development process, accessing real-time information themselves when they need it. Communication among functions is seamless, cutting down on emails, errors and out-of-date versions of files. PLM cuts down the time spent waiting for results to be transferred to the different parties, speeding up time to market.   

Furthermore, Centric’s partnership with FoodChain ID simplifies compliance for the food and beverage industry. By integrating regulatory expertise with Centric PLM, businesses gain accurate compliance data, faster risk identification and streamlined processes. This collaboration reduces errors, accelerates time-to-market and ensures supply chain transparency.  

PLM is a way to track and manage all the information associated with the additional ingredient requirements needed to lessen the effects of geopolitical instability. Likewise, changing consumer desires necessitate certifications and traceability of ingredient and material origins.  

With Centric PLM in your product development toolbox, food & beverage manufacturers have a definite advantage in today’s competitive marketplace.  

Want to have a personal consultation with our food and beverage PLM experts? Request a one-on-one demo to discover how Centric’s solutions will transform your business!