Day by day we observe that there is a wide variety of products in the market, some of them fully recognized for us, but some others may appear new and unknown. We become curious and, how many times have we looked after finding new brands and products? or, have we gotten surprised to discover the latest innovations of our favorite products?
How many times have we passed by that shelf or a store where we find that unique product that catches or sight, captivating us for its original and innovative characteristics or even for having a good price.
Creativity and innovation play a fundamental role in Casa Sauza when we create a product, that is to say that we transfer these components in every step of the process (box, labels, package, bottle, etc) where putting them together assure the goal of satisfying our clients, who are the most valuable and important judges.
As a buyer, it is very rewarding to see the final dream completed after the creation of a new product or the re-design of an existent one. Within the stages of the development of the product, the Strategic Sourcing area is the one in charge of supervising the official quality standards that Tequila Sauza implement in its products and looking for the best provider. The provider is the one with the goal of turning into reality the different sketches and drafts designed by the "arts" creative team in Tequila Sauza (Innovation, Marketing and Brand area).
Searching for the Best Provider for Casa Sauza
Once the product's concept has been defined, the Purchase Area will receive the specifications and/or characteristics that we are planning to develop (box, package, bottle, labels, etc) with the purpose of looking for the best provider option in the market.
During the development of the product, the Innovation area is the one guiding the process, supervising the samples coming from our providers. For example, if we talk about labels, when receiving the first samples they may be different from expected, and here is where the adjustments and changes are performed, appearing the chance of even totally changing the initial concept, which impacts the delivery times and costs. I remember with joy the first label's purchase. From my personal point of view, I learned that the duty of a buyer goes beyond negotiating a proper delivery time, a good price or defining security strategies.
It is necessary to go deeper into knowing the provider's processes, the used techniques in the elaboration of the labels, knowing about its problems and challenges and being able to share ideas. All of these is highly beneficial to create a mutual bond of trust and a commercial-partner relationship.
Factors to Consider that Impact the Label's Cost
- · Technology: Process where the "art" is revised and we can determinate the number of inks and/or layers is necessary to give the high detailed level that Tequila Sauza wants. This way, the provider is able to know what kind of technology is required to produce the material (WET & GLUE, PSL, and Digital). WET & GLUE (labels that need adhesive/glue by separated) compared to PSL and Digital, it's cheaper. However, the quality in the printed labels done digitally is way better.
In this stage, the provider is also informed about the packaging specifications that will be implemented in the development of the product, for example:
- · Label dimensions
- · Product variants and its components (front, back, bottleneck, etc)
Once the provider has identified all the parameters and conditions that are necessary, he will generate his own art, something like his own cooking recipe which will be sent to the client's innovation area for its approval.
- Purchase Volume and Delivery Time: The number of pieces that will be purchased is an important factor that directly impacts the costs, the bigger the purchase volume, the lower the cost. To a lower volume, the price increases. The same happens with the delivery time, it is essential to check this factor with the provider because it has to be defined previously within the Material Development Stage so that the timing is clear for the provider and the client.
- Extra Elements in the Labels: There are certain labels that due to the type of brand or product, they include some metallic and holographic effects, for example in the Safety Labels. These are done by a process called cold foil, and it can be used individually or combined with other processes as the emboss.
- Tool Costs: Regarding the tools, the provider generates Plaques (information what will be printed as a press in the substrate) and Swages (rollers with the label form) which are used to cut our label in the desired way.
- Substrate: It is known as the material on which the information will be printed, there exist a wide variety of substrates. By conjugating all these elements and processes, a great label is created and they are a key point in the design of new products.
In my experience as a Storage Analyst for more than 3 years and later os as a Material Planner for another 5 years, I never dimensioned or thought about the impact of the substrates on the costs. Neither the importance of the differentiation of a Wet&Glue Label against a PSL.
Without any doubt I have learned a lot in this year and a half that I've been in the Strategic Sourcing area, where I am in charge of purchasing the labels to our providers but definitely, there is a lot of learning that is coming our way, and I'm sure I will never get bored in such a dynamic place. I invite you to keep reading the following articles about:
Development of a New Product in the Tequila Industry
How is the best Tequila Bottle Made?