Making Sense of Logistics
DVD retailers put brakes on supply chain

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DVD retailers put brakes on supply chain

Friday, 12/12/2008 06:37
Those involved with the distribution of DVDs will be displeased with a recent report into DVD supply chains which suggests retailers are offering less time and less space to the sale of such items.

Revenues from DVD sales have dropped in recent months, and a pattern is emerging showing that retailers are responding by carrying less DVDs on their shelves, creating repercussions for those throughout the supply chain.

"[Lower DVD revenues are] resulting in retailers employing a more cautious approach to ordering stock, thus reducing surplus inventory and freeing up capital and shelf space," Futursource consultant Michael Boreham explained.

"This is piling on the pressure across the supply chain and increasing the frequency of deliveries."

Such a swift change in the dynamic of supply chains demonstrates the value of a business having a supply chain management company, which can offer forecasts of an industry and make attempts to reduce the risk of such changes when they occur.

Supply chain management companies can ensure that any business has the most responsive supply chain, in order to retain its competitive edge.

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