Making Sense of Logistics
Supply chains trends: efficiency no longer a focus

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Supply chains trends: efficiency no longer a focus

Thursday, 24/7/2008 05:05
Supply chains are becoming increasingly more customer orientated, according to recent research that shows retailers are now opting for supply chains with the end user in mind.

While supply chains have always been important in providing the consumer with a cheap and readily available product, the new emphasis for many retailers now is a chain that will offer a product at more convenience to the consumer, at the cost of an efficient supply chain.

With more choices being offered to consumers, supply chains are certainly becoming less streamlined, with companies now offering consumers a choice of shipment, choice of delivery time and even allowing consumers a peek into a company's inventory.

"Retailers have long been focused on supply chain efficiency - delivering product to stores and customers cheaper and faster," Nikki Baird, Managing Partner at RSR Research and the report's author explained.

"It's a real testimony to retailers' commitment to customer-centric retail strategies that they are willing to spend more by operating a less efficient supply chain, simply to make sure that they are meeting consumers' product expectations in channels."

Such a shift from efficiency to consumer-focused service is a large overhaul, and outsourcing a supply chain will save a company countless management hours in the achievement of such a chain.

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