Are you up for the billion pound prize?
By wpengine	 1st October 2009 No Comments
There is a £1 billion prize to be had by retailers if they can improve data practices in the supply chain.
The figure is highlighted in a new report from GS1 UK, The Data Crunch Report, which calculates that savings of £700 million are available now with a further £300 million coming from new sales. Savings are available in two main areas, it says: avoiding shrinkage and eliminating workaround processes. The total savings from eliminating workarounds and corrections was estimated at £135 million for retailers and £100 million for suppliers. Additionally, the total savings from avoiding shrinkage were placed at £250 million and £225 million for retailers and suppliers respectively.
And these appear to be fairly robust figures – coming as they do from the four largest supermarkets and their four largest suppliers. It has long been recognised that data quality is an issue in supply chain, but even so it is slightly shocking to see just how big the issue is.
What is clear from the GS1 report is that improved collaboration between retailers and suppliers is key to realising the savings in the retail supply chain. In fact Sainsbury's trading director Mike Coupe says: "Wemust all work with our suppliers to ensure a reliable flow of information and product data tomake this happen."
However, it should also be noted that making changes can be a hazardous process for a company. A study by Capgemini Consulting, Trends in Business Transformation 2009, found that less than half (47 per cent) of those surveyed felt their company excelled in this area as the nature of business transformation projects continued to evolve.
Collaboration is a familiar theme, but it's not every day that you come across such a dramatic call to action. Are you up for the billion pound prize?
Look again With this issue, we have refreshed the design of Logistics Manager.We have kept all the elements that make the magazine a compelling read, but with a fresh, clean look that makes it easier to read and signposts stories more distinctively. I hope you like it.
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