Asian food re­tail: Growth trends

The ‘Hun­gry for Growth’ re­port throws light on the lo­gis­tics trends in the Asian food re­tail in­dus­try in­clud­ing In­dia's, and im­plies that those look­ing to leapfrog com­pe­ti­tion must em­brace ad­vanced sup­ply man­age­ment prin­ci­ples.

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Based on in­ter­views with more than 300 in­dus­try de­ci­sion-makers in In­dia, In­done­sia, Thai­land and Viet­nam, this study, com­mis­sioned by DHL Sup­ply Chain and con­ducted by Red­shift Re­search, en­ti­tled re­tail­ers need re­li­able, ag­ile sup­ply lines if they’re to fo­cus on their core com­pe­ten­cies and com­pete. At DHL, we be­lieve this agility only comes from be­ing able to man­age the sup­ply chain as an end-to-end process across trans­port, ware­hous­ing, and value-added ser­vices in a way that’s rapidly scal­able with­out cre­at­ing ex­tra com­plex­ity.

The re­search also found that only 12 per cent of In­dian food re­tail­ers have sought to im­prove per­for­mance by fully out­sourc­ing their sup­ply chains, suggest­ing that re­tail­ers who ac­tively adopt third-party lo­gis­tics so­lu­tions stand to gain sig­nif­i­cant “first-mover ad­van­tages” against their com­pe­ti­tion.

More than four in 10 In­dian food re­tail­ers see each of in­ven­tory op­ti­mi­sa­tion, trans­port man­age­ment, and work­force plan­ning tech­nolo­gies as be­ing ben­e­fi­cial to their over­all sup­ply chain re­sults.

Asia’s food re­tail­ers recog­nise the need to in­no­vate and change, but the tech­nolo­gies and process trans­for­ma­tions re­quired to do so aren’t their do­main of ex­per­tise – and nor should they be.

The key to the growth and ex­pan­sion in Asia’s food re­tail in­dus­try, and those of other de­vel­op­ing re­gions where we’re see­ing sim­i­lar trends, will be how ef­fec­tively op­er­a­tors can take ad­van­tage of third-party ex­per­tise and man­aged so­lu­tions in ev­ery­thing from tech­nol­ogy to end-to-end sup­ply chain man­age­ment. For food re­tail­ers look­ing to leapfrog their com­pe­ti­tion and stay on top of growth’s com­plex­ity, the time to em­brace ad­vanced sup­ply man­age­ment prin­ci­ples is now.

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