Supply chains: new rules of the game
Greater investment in centralised distribution means that food retailers now have more ownership and control over the supply chain process, setting new rules for an industry that has almost entirely been dominated by outsourced service providers.
Key challenges, like, reducing back door delays, eliminating time wastage, maximising economies of scale and reducing carbon footprint, among others, still remain obstacles for retailers in maximising supply efficiencies and achieving an important ROI, which is to deliver fresh, quality products to consumers on-demand.
Essentially “the principal of centralised distribution should ensure a leaner route to market in the form of cheaper distribution,” comments Imperial Logistics.
In the current environment, streamlining processes to improve margins is critical to remain competitive.
But, where does it leave transport and logistics operators who previously rendered these services? Does it give them new opportunities to generate business? Can retailers pull all these specialist skills in-house or do they still need outsourced logistics experts?
Imperial Logistics suggests that retailers and supply chain professionals engage with one another as partners, working together to optimise the process, reduce costs and achieve centralised distribution.
Supply chain professionals have developed infrastructure and skills that can be effectively utilised on either a long or short term basis. These could include additional capacity to cope with new store openings, services to help align a retailer’s green practises, technology consulting services and many others that can add significant value if retailers and service providers collaborate.
It appears that retailers could be most efficient by maintaining a balance between outsourced services and in-house infrastructure and skills. It’s up to each retailer to determine what that mix should be.
Please feel free to make comments or raise new issues by
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What’s on your mind? |
| We want to hear from you and what you think about the retail and FMCG industry in South Africa. You can email your comments and feedback to our editor, . |
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BMi Research: Breakfast Foods in South Africa
More consumers are choosing to eat a healthy breakfast to begin their day. This has been promoted by physicians and GP’s for years, and now seems to be impacting the breakfast foods market positively. Read more
Go to the BMi Research website
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Image from shoppernewsblog.com
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King of the Till report
Get inspired: Shoppernewblog profiles September’s Shopper Solution of the month. Read more
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| We've created business listing pages for 121 Outsource and Fusion as part of the marketing services we provide to businesses in the retail sector. |
121 OUTSOURCE
121 Outsource is the second oldest outsourced call centre in South Africa. We have been in the industry of retaining customers and promoting brand loyalty for various blue chip companies for the last 20+ years.
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FUSION
As one of South Africa’s leading Business Process Outsourcing (BPO) providers, Fusion understands the dynamics of superior customer care and is a truly ‘customer-centric’ organisation.
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Strategy Recruitment Marketing
Strategy Recruitment Marketing is focused on providing tailor-made, alternative recruitment solutions that are based on out-the-box strategic and creative thinking, detailed processes, and keeping abreast of the latest recruitment practices and technology through understanding each client´s critical success factors, to produce impactful results cost-effectively.
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Nicolene Di Bartolo Managed Appointments
Leadership is action... not position! Business Leaders engage our services to identify individuals who will elevate their organisations to new heights. It is our mission to source exceptional talent in mid-to executive management levels across all job categories. We support these extraordinary individuals in furthering their careers.
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About us
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| Fastmoving provides online data support and marketing services to FMCG brands and businesses operating in the retail sector. Our inventory management service is a central repository where FMCG brands can store and share hi-res pack shots and essential product information with suppliers for each SKU, on-demand, including barcodes, product endorsements, nutritional values, ingredients and allergens. |
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