UK retail supply chain will struggle through credit crunch without adopting new efficiency measures

Published 27th June 2008

UK retail supply chain will struggle through credit crunch without adopting new efficiency measures

According to a new study into supply chain efficiency from The Aberdeen Group, adopting technology to improve productivity will help businesses in the supply chain weather inflation, and the current fuel price crisis.

This supports the opinion of Gary Glessner, Managing Director of Vocollect Europe who works with major European operations including Sainsbury’s, Next, WH Smiths, 3663, Palmer & Harvey and Brakes to help them improve the efficiency of getting products from the warehouse to the store of restaurant.

“With fuel and commodity prices on the rise and severe cuts in consumer spending happening, the supply chain supporting the UK retail sector must review its operational costs,” explained Gary Glessner.

The survey from the Aberdeen Group suggests that some of the most effective efficiency and productivity savings can be made in the supply chain at the warehouse stage, to avoid inaccuracy and resulting costs passing on to the customer. With the cost of the average shopping basket up 6% in the last year, efficiency in retail business has never been more important.

Surveying over 150 businesses worldwide, the survey found that:-

- 67% of businesses were looking to improve their warehouse processes within the next 12 months, with 32% planning to upgrade or enhance their warehouse management solution.

- 78% of ‘best in class’ companies deployed a centralised direction of processes at the warehousing stage, in the form of voice-activated picking software, such as Vocollect Voice or an RFID tagging system, in use by all the warehouse operatives.

- By 2009, over 50% of the leading companies surveyed worldwide will be using additional warehouse technology, including voice-recognition applications, labour management software, mobile computers , and automated storage and retrieval equipment.

Leading warehousing and haulage firm, Eddie Stobart has stepped beyond the competitive norm in the search of supply chain efficiency, it was reported last week, and is using new software to manage the carrying of goods for multiple customers in single loads, to minimise fuel use and maximise capacity.

Bob Shecterle, SVP and group director of research at Aberdeen, said of the findings; “Despite the economic slowdown, companies that are truly looking to create best-in-class distribution centres are taking advantage of the next wave of progress and technology investments. The greater the agility, the greater the ability to react quickly and effectively to uncertainty. With technology and processes improvements, today’s leading distribution centres are delivering greater value without increasing costs.”

Gary Glessner, managing director, Vocollect Europe, says of the benefits; “We have been helping businesses in the supply chain, from distributors and 3PLs through to retailers and restaurant chains achieve operational efficiency at the product picking stage for over 20 years, across more than 35 countries. There is not one customer that has not benefited from exceptional increases in productivity and accuracy. On average, customers report performance gains in excess of 25% to 35% and accuracy levels of over 99%, which is exceptional when considering the average cost of a single error in an order can be as much as £250.”

To find out more about how the European businesses can use Voice-directed work to increase their efficiency, whilst cutting their operational costs, or to discuss the implication of The Aberdeen Group report in more detail, I am happy to arrange a telephone briefing for you with Gary Glassner, managing director of Vocollect Europe.

Please call me on 01494 434434 or email me at samd@strategicpr.net.

Best wishes

Sam Dawson
Strategic PR
01494 434434