The credit crunch is enhancing the importance of supply chain for retailers, according to Asda’s distribution director Ian Stansfield.

He was speaking at the Humber International Logistics Convention, at Hull University Business School this week when he told delegates: “This is an interesting moment in time for the retail sector”. He said customers were becoming loyal to their “pockets as well as their brands” and added that supply chain efficiency needs to be at the core of a retail business so that companies can keep their prices low and maintain their competitive edge.

Duncan Kendal, Head of supply operations at Argos, discussed the changing nature of customer demand as shoppers now insist on value for time as well as value for money. First class supplier collaboration is required in order to keep customer promise and respond to demand, he suggested.

Professor David Grant, from the Logistics Institute at the school, and Professor John Fernie, Heriot-Watt University, discussed findings from their research into on shelf availability in the retail sector. He said the grocery sector has made great improvement in addressing on-shelf availability and recommended that supply chains should move away from a process and supply approach to adopt one that is customer driven. He also warned that the poor performance of convenience stores still needs to be tackled.

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