Opinion: designing a supply chain ‘from the shelf back’

from ft.com

It may seem obvious that if you do not have products on the shelf, then business will be lost. What is not obvious, however, is the extent to which this can destroy value for retailers and manufacturers.

For the manufacturer, 46 per cent of the time the shopper will either substitute for another brand or not buy at all, according to recent research for ECR (Efficient Consumer Response) Europe. For the retailer, the biggest risks are that products are not bought at all, or that the shopper will buy the product from a competing store. When they have no stock, this happens 30 per cent of the time.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s