Bill Bittner

SCDigest: Top Consumer Goods and Retail Supply Chains for 2009

February 11, 2010

FROM RETAILWIRE:
Each year, SCDigest reports on the annual survey results from Cannondale Associates, which ranks the top consumer packaged goods industry supply chains and the top retail supply chains in the primary store segments that sell those packaged goods products. What’s your reaction to this year's Cannondale CPG manufacturer and retail supply chain rankings?      [more...]

There is an interesting dynamic going on that Brick and Mortar retailers must face up to or they're going to lose out completely. More often, the Brick and Mortar retailer is being bypassed by the Internet. Amazon's results have shown this clearly and other online merchants are doing the same thing.

I always like the definition of the supermarket supply chain that says: "The supermarket supply begins in the farmer's field and does not end until the product passes through the bowels of the consumer." Perhaps a little too graphic, but the point is that the player in the supply chain who can demonstrate they have the consumer's best interests in mind will win their loyalty.

This makes customer service a big and important differentiator between the remote service of an Internet retailer and the local store. From a supply chain perspective, this puts a big emphasis on "reverse logistics." Unfortunately, I don't see any discussion here of this portion of the retail supply chain. Many retailers have actually worked to unload this responsibility, the very role that allows them to keep business. Retailers have insisted that manufacturers put in return policies that include direct customer support. Some products come with gigantic labels pronouncing "Don't go to the retailer for problems." Retailers need to recapture this role.

You can no longer bifurcate the supply chain between the manufacturer and the retailer. You must take the supermarket perspective and also consider the consumer experience.