Retailers and suppliers need to adapt their businesses to respond better to multi-channel and multi-visit shoppers, a new report has found.
The report, conducted by logistics firm Fowler Welch and named Operating in a Changing Retail Environment, suggests more collaboration across the supply chain is needed to help smaller firms offer more frequent deliveries and varied pack sizes for different channels.
If suppliers don’t do this, the study said they risk chasing market share rather than sustainably growing the market place as a whole.
“We’re seeing more and more that consumers are favouring multi-channel, multi-visit shopping as they look for the most convenient option possible. Not adapting supply chains to help retailers meet these changes could have a significant impact on manufacturers and suppliers,” said Fowler Welch managing director, Nick Hay.
“It’s essential that manufacturers recognise that supplier routes are more fragmented than ever and that to remain competitive they must move on from full-load deliveries to RDCs and embrace simplified supply chains and greater collaboration.”
Fowler Welch said it has launched the report in the context of a “stagnant grocery market”, where competitors are looking to steal market share rather than driving overall market growth. Those not adapting to changing shopper habits and the associated changes in retailer offerings will struggle to remain competitive, the company said.
Hay said suppliers can become more agile by working with an “experienced consolidator” and should seek to collaborate across the supply chain.
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