Deselect Platform Choice
 
Australia
Belgium
China
France
Germany
Greece
India
Ireland
Italy
Kuwait
Luxembourg
Netherlands
New Zealand
Portugal
Spain
Sweden
Switzerland
United Arab Emirates
United Kingdom
United States
Demand & Supply Chain Management Evolution About  |  How to publish  |  Contacts  |  Newsletter
News | Associations | Education | Job | Agenda | Topics | Insight | Resources
  Automotive       Chemicals & Pharmaceuticals       Electrical, Electronics & Home Appliances       Food & Beverage       Retail       ...  




08 May 2017
 
State of the Retail Supply Chain 2017

Relex Solutions
Relex Solutions

Research highlights that ‘handling promotions effectively’ remains the retail industry’s top business issue regarding supply chain planning & execution. ‘State of the Retail Supply Chain 2017’ research study, conducted by research firm Martec International and commissioned by RELEX Solutions, provider of integrated retail & supply chain planning solutions, is published today. For the third consecutive year, the report highlights, the key business challenges and priorities for supply chain managers across the European retail industry.  
 

By: Relex Solutions
 

Key findings include:

  • 40% of retailers cited ‘handling promotions effectively’ as their main supply chain planning & execution issue
  • Forecasting more effectively for promotions and new products jointly ranked as the top forecasting challenge
  • Only 18% of retailers are satisfied with their current promotion and new line introduction planning and forecasting system
  • For most, the supply chain is still managed in its own silo and does not take into consideration either ‘space’ or ‘external’ data, such as weather or competitive pricing



The research, for which 80 retailers across France, Germany, Italy, the Nordics, Spain and UK with sales in excess of €100 million per annum were interviewed, indicates that managing promotions remains singularly the biggest supply chain business challenge. 40% of retailers interviewed cited ‘handling promotions effectively’ as their main supply chain planning & execution issue, whilst ‘forecasting more effectively for promotions and promotional lift’ ranked as the most significant forecasting challenge. Moreover, only 18% of retailers are satisfied with their current promotion and new line introduction planning and forecasting system.

Further significant findings include:

  • Only 24% of retailers interviewed are satisfied with the analytical and reporting capabilities of their supply chain systems.
  • For the majority of organizations, the supply chain is still managed in its own silo and does not take into consideration either ‘space’ or ‘external’ data, such as weather or competitive pricing. On average, retailers scored 5.1 and 4.3 out of 10 respectively for these aspects of supply chain management.

 


An overwhelming majority of retailers are not harnessing the benefits of the latest generation of supply chain technologies

Mikko Kärkkäinen, Group CEO, RELEX Solutions, comments: “In an increasingly tough trading environment, retailers are recognizing the importance of managing promotions effectively to gain competitive advantage, but the majority are doing this without suitable systems support. In a fast-changing business landscape, the fact that only 18% of supply chain managers are satisfied with the support they get for promotion and new line forecasting is not only shocking; it indicates that an overwhelming majority of retailers are not harnessing the benefits of the latest generation of supply chain technologies.”

 

The current siloed approach to the organization and business processes sits in conflict with the need to deliver customers a joined-up retail experience

He adds: “In addition, the current siloed approach to the organization and business processes sits in conflict with the need to deliver customers a joined-up retail experience. A streamlined, well-operated supply chain can change all this, impacting all areas of the business and giving all stakeholders the visibility to turn around the performance of a business and ensure that all its assets – including space – are optimally managed. By forecasting the flow of merchandise through the entire supply chain, from suppliers to multi-level distribution centres, to the stores and shelves, retailers can identify potential availability issues sooner, and take corrective action.

Fran Riseley, Deputy Managing Director, Martec International, concludes: “With the latest supply chain technology, retailers can now generate a single and accurate demand forecast that takes into account fluctuations in demand, seasonality, promotions, competitive pricing, and even weather – all at an individual store level. What-if scenarios can be run based on a holistic view of all relevant internal and external data to ensure the end-to-end supply chain is optimally managed for both known events and exceptions. Increasingly, it will be a retailer’s ability to manage such exceptions well that will provide them with the competitive differentiation to succeed.”

 

Get your free copy of the full ‘State of the Retail Supply Chain 2017’ report from here

 

 



 







Last update 2 Feb 2018
PMI remains elevated at start of 2018
   Source: Investec Manufacturing PMI Ireland  -  IHS Markit
Ireland 

 
           Circular Economy     Industry 4.0     Block Chain 

     Internet of Things     Omni Channel 



News & Trends
 

Chemicals & Pharmaceuticals

Even industries driven by the strictest safety and environmental regulations are capable of reducing their costs. Our solutions improve each phase of the chemical logistics supply chain, to increase your supply chain performance, improve predictability and mitigate potential problems before they arise. B...


The impact of digitalization and status of the supply chain profession are driving a global talent shortage crisis

A survey conducted by DHL found that the supply chain talent pool is not keeping up with the changing requirements as technology reshapes the industry. More than a third of companies have failed to take steps to creat...

   

Education
 

Local & Regional Agenda
 


Resources
 
Erema: Gaining a competitive edge through preferential exports

Erema, an Austrian manufacturer of recycling systems, uses AEB software to accelerate the proper classification of its components, manage supplier’s declarations, and ensure compliance in its exports. Erema ship...

The Future of Procurement: Executive Overview

What do you think the future holds for procurement? And do you think your predictions line up with those of your peers?You can find out by downloading this overview of a recent Oxford Economics global survey involving mo...


International Agenda