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Retail Industry Report 2011 PDF
Retail Industry Report 2011 PDF
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Table of Contents
I. Introduction ............................................................................................. 4
II. Methodology and Approach ............................................................... 5
III. Profile of Respondents ......................................................................... 6
IV. Expected Performance for Retail Sector
V. Logistics Strategies
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XII. Conclusions
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List of Charts
Annual Revenue ($)
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Geographic Region
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I. Introduction
The retail and consumer product goods sector is arguably the most
important market segmant in the World. The sector was severely
affected by the recession which began in 2008, and which may still be
ongoing.
The unfavourable personal economic situation of consumers, coupled
with supplier failures and fluctuating demand trends have all put
different stresses on to both retailers and consumer product
manufacturers supply chains. This survey aimed to take a snapshot of
some of the major decisions and issues that supply chain executives
face today. We also looked at how the role of the Chief Supply Chain
Officer is currently being recognized within a companys
management structure.
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V. Logistics Strategies
The next few chapters of this report focus on questions that were aimed
only to respondents representing retailers or consumer products
manufacturers.
Walmart have recently announced that they are going to take control
of the inbound transportation of their suppliers. In light of this,
respondents were asked to identify their stance on taking control of
inbound transportation for suppliers. The majority (58%) are currently
managing some of their suppliers' inbound transportation, though more
than a quarter still have no plans to do so.
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Forecasting is an area where most respondents still feel that they have
room for improvement. Only 22% of retail and consumer product supply
chain execs rated their forecasting capabilties as either good or
excellent. Indeed, 30% rated their forecasting as less than satisfactory
or very poor. Or, put it another way and one can report that 78% of
respondents would not rate their forecasting capabilties as anything
better that satisfactory.
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GOH logistics is only a small percentage (less than 10%)of the total
logistics needs for the vast majority (80%)of respondents. No
respondents to the survey had more than 75% of their logistics needs
requiring garments on hangers.
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Respondents were also asked to identify whom their top supply chain
executive reports to. Exactly half of the respondents said that their top
supply chain executive reports to their CEO/President, while only 8%
said their top supply chain executive reports to a senior executive
below board level.
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XII. Conclusions
The retail and consumer products industry is not thriving in 2010, but it is
surviving in both Europe and North America whilst there are indicators
of strong growth in Asia-Pacific, Africa and South America.
In terms of the supply chain, lowering cost is not suprisingly the number
one objective of executives. The use of 3PLs is widespread, and still
growing; but there are still gaps that 3PLs can fill, especially by
broadening their product offering and sales efforts towards medium
and small enterprises. The garments on hanger sector is also grossly
under-represented by the use of 3PLs.
An encouraging sign is the fact that half of all respondents stated that
they have either a Chief Supply Chain Officer or Chief Logistics Officer
in their organizations. And with 60% of respondents reporting that the
most senior supply chain executive in their company is on the
management board (although North America is lagging behind
Europe and other regions with a figure of around 40%) we can
confidently report that the supply chain function is now very well
recognized and respected in the retail and consumer products
industry.
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3PL Services:
Logistics
Receiving
Pick/Ship GOH
Cross Dock/Consolidation
Shipping
Inventory Management
Value Added Services (Re-ticketing, Changing
Hangers)
Fully Integrated IT Solution with Client visibility
Supply Chain Management
Order Planning
Manufacturing Plan
Warehousing
Full Inventory management
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supply chain executives should prepare for - and which tools and
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The customer obsession- how retailers can keep up with an increasingly
demand-driven environment.
New Channels- As the supply chain faces a massive shake up, how will
relationships with suppliers change? How to manage a new selling arena.
Battling against a fragmented supply chain- how achieving an integrated
supply chain can cut costs and lead times.
Sustainability- meeting legislative requirements and cutting costs in the
process.
Horizontal Collaboration- is this the way forward for companies wishing to
reduce transportation costs in the retail & CPG sectors?
Forecasting, S&OP & Flexibility - how suppliers and retailers can work
together to produce accurate forecasting and operational excellence in an
industry where promoted demand is prevalent.