Supply Chain Management: The 10 Commandments for European Retailers

The importance attributed to the "Supply Chain" is almost unanimously shared by the workforce, although managerial and academic applications on the subject are not yet incisively developed.

By Antonello Vilardi - ITALY - RETAIL WATCH

Performance control aimed at improving efficiency is probably the only true command that inspires business processes: the mass market is obviously not excluded.

Supply Chain Management is expression that indicates a complicated device based on logistic activities, systematic cataloging of products and strategic coordination along the distribution route to satisfy, in the best possible way, the final consumer and consolidate the competitive advantage over the competition.

From the work of our South African friends of SUPERMARKET AND RETAILER, we took an instructive decalogue signed by Peter Auld, whose title highlights "THE TEN SUPPLY-CHAIN COMMANDMENTS FOR RETAILERS".

Scouring the ten points stimulates careful reflection on a technical topic that maintains, everywhere, an indispensable value for mass market distributors.

1. KEEP IT AS SHORT AS POSSIBLE

Have you checked the supply routes of each product for optimisation?

Have you identified those products that should or could be channelled through your distribution centre?

2. TOUCH THE PRODUCT AS LITTLE AS POSSIBLE

A streamlined supply chain eliminates the need for so-called back up storage in supermarkets that are unnecessary and a waste of valuable and costly real estate.

3. MANAGE IT AS WIDELY AS POSSIBLE

It is worth learning how suppliers manage hiccups in their supply line and how the retailer can help.

4. RECOGNISE IT AS CONSISTING OF INFORMATION, STOCK AND CASH FLOWS

5. REMEMBER THAT DATA INTEGRITY LUBRICATES THE SUPPLY CHAIN

6. ENSURE THAT DATA IS CLEAN, ACCURATE AND MATCHED ACROSS ALL PARTNERS

7. PURCHASE AND REPLENISH EFFECTIVELY AND CONTINUOUSLY

8. ENSURE THAT PALLETTISATION AND PACKAGING IS COST EFFECTIVE AND EFFICIENT

9. COLLABORATE WITH PARTNERS AND ELIMINATE CONFLICT

10. ACKNOWLEDGE THAT THE SUPPLY CHAIN IS “DYNAMIC” AND TOMORROW IT CAN BE IMPROVED