Retail industry switches on to collaborative strategy

JOY ORLEK THE RETAIL industry is realising that a collaborative supply chain strategy with key suppliers is vital to meeting the challenges of increased demand and globalisation. That was one of the key findings in the 2007 supplychainforesight survey focusing on Fast Moving Consumer Goods and Retail. Undertaken by Barloworld Logistics, the survey reveals that the pressures on the FMCG/retail supply chain are much the same as in other industries in SA right now. “Sustained local economic growth and demand has placed pressure on infrastructures, business processes and supply chain strategy, particularly when coupled with a paucity of high-level supply chain skills,” the survey points out. “The industry is poised for a further period of exceptional growth after a long period of prosperity and profits and will seek to do this partly though global expansion and also by embarking more steadily on the route to effective global sourcing.” Based on the responses received, the retail industry appears to be realising that the venture into the wider world and meeting increased demands at home depends on a new collaborative supply chain strategy which involves their key suppliers on the FMCG side. “The fact that the power in the buyer/supplier relationship has traditionally been with the retailers makes it possible that this vision of reform will shortly become a reality.”