Analysis of Business Performance for the Food Ingredient Supplier with the Concepts of Pricing, Product Strategy, and Customer Industry Attribute
This paper aims to analyze the main influencing factors on three business performance indexes: gross profit, total purchasing, and trade intensity from 860 corporate customers of the study case, the food ingredient supplier (the case supplier) from 2007 to 2010. This paper develops the multiple-regression model to conduct the empirical analysis. The results show that the three performance indexes are significantly positively correlated with the purchased item, maintenance cost of customer relationship, credit grace period, and customer scale. However, they are significantly negatively correlated with the sales ranking of main purchased products. Besides pricing, product source, risk aversion, and customer attribute, this paper can provide a reference for the case supplier to offer different strategies to the customers with high loyalty and a good financial situation. The case supplier can also set up its operating performance management on aggressively outsourcing and building up its business with potential customers on the ice and biotech industries which are also key performance indexes of business operational management.