EFFICIENCIES MADE by and process changes forced upon operators during
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the recession will need to continue and be improved upon as market conditions pick up. That was the message delivered by two major operators at the Chartered Institute of Logistics and Transport annual conference last week.
Jane Burkitt, supply planning director at PepsiCo International UK, warned delegates: "Trends triggered by the recession are here to stay. The pressure on prices will be maintained. [In the FMCG environment] thrift is chic. Online [retailing] is winning [an ever larger] share of bulk-shopping trips, while top-up shopping in discount stores is growing."
Because both the growth of small-format stores run by major retailers (Tesco Metro for example) and the need for retailers to reduce the size of their in-store stockrooms to maximise retail space is expected to continue, logistical challenges will continue to evolve. "Our supply chain processes have got to be smarter than ever. The pressure on service will not let up," Burkitt noted.
Dave Lowther, operations services director at Screwf ix Direct, reinforced the message that customer service must remain unaffected by cost pressures and reminded delegates: "It's very easy to kick the crap out of your business partners in a recession, but that doesn't produce results."