Namrata Shah, Partner and Head of Americas at Kearney’ s PERLab, explains why BPCH companies must redesign their approach to portfolios

The beauty, personal care and household( BPCH) industry finds itself at a crossroads. As consumer expectations increase and market pressures intensify, companies are discovering that success hinges not merely on marketing brilliance, but also on fundamental product excellence.

Redefining value with suppliers For BPCH companies, the traditional procurement playbook is obsolete. Namrata Shah, Partner and Head of Americas for Kearney’ s PERLab, explains:“ For me, unlocking value with partners by definition comes down to a multivariate equation and finding that optimal balance between quality, innovation, sustainability, service and costs.

“ You take the typical organisational priorities today, procurement is one of the most critical enablers to activating these priorities, due to the confluence of stagnating growth, pressured margins, supply chain disruptions and increased regulations. Procurement teams are playing a critical role with R & D, identifying and building new innovation partners.

“ Gone are the days when we made supplier selections and created partnerships purely based on costs. Based on our experience, we’ ve seen procurement teams are collaborating closely with third-party manufacturers and suppliers, fostering a partnership that drives ongoing innovation. This approach is not just a one-off success but creates sustainable, long-term value for both organizations. Kearney’ s pragmatic, collaborative methodology focuses on developing practical solutions whilst maintaining unwavering commitment to measurable outcomes. This holistic approach is essential in an industry where product formulation, packaging integrity and timely delivery directly impact consumer experience.

Namrata emphasises the risk of oversimplifying supplier relationships:“ We can all find the lowest cost suppliers somewhere in the world, but not having the right product at the right place and right time puts significant revenue at risk for any of the businesses we work with.”

The current market environment makes a more strategic approach critical, says Namrata:“ Its stagnating growth, its pressure on margins, its continued supply chain disruptions since multiple years, its uncertainty of tariffs, and more and more regulations coming in.”