Retailers Look Beyond Cost Cutting to Accent Growth, Annual Retail Supply Chain Report Says

There is a heightened urgency by retailers and supply chain management executives to shift from cost cutting to growth, and to meet increased consumer demand across multiple channels. These are among the findings of the third annual State of he Retail Supply Chain Report, just released by the Retail Industry Leaders Association.

The report, based on a yearly study by Auburn University, brings together leading retailers from North America to examine the year’s current trends, best practices and foremost issues impacting the strategy and planning of retail supply chains.

Findings from the study, sponsored by Accenture, reveal stronger SCM capacities post-recession as retailers adjust to the new environment. In contrast to last year’s priorities, the focus of SCM executives has shifted from surviving the recession to fast-tracking recovery in order to face what is on the horizon for the industry.

The theme of this year’s results can be summarized as cautiously optimistic. Highlights of the survey revealed that even though the recession is moving into the rear-view mirror, retailers still face some uncertainty on new issues. While SCM executives utilized cost-cutting strategies last year, the focus for the future is to balance costs while prioritizing growth and customer service.

New issues such as the increasing importance of multichannel operations, the expansion of global sourcing and demand shifts from store to online platforms have emerged as top-of-mind objectives for the coming year, as well as concerns over the impact of new transportation legislation, new motor carrier safety regulations, talent retention issues and turning sustainable practices into further margin enhancement.

The report can be downloaded from the RILA web site.

Source: RILA