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.
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.