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Evolving consumer demands, along with the diversity of global sourcing enabled by modern logistics, mean that supply chains are becoming increasingly sophisticated. This sophistication also means complexity, making effective management and collaboration essential to the long-term success of retailers and manufacturers. However, a recent industry-wide survey on current supply chain management (SCM) practices, conducted by SGS, confirms that although organisations do have systems and processes in place to manage their supply chain network, they are not always perceived to be very effective.
At the end of last year new regulations came into place on food labelling in the EU called the Food Information for Consumers Regulation (FIR). While retailers have put the hard work in to comply with this most recent standard, the lesson for retailers both in the EU and also worldwide is that they need to be ready for any future changes in demands to avoid unnecessary cost and disruption. Fluidly sharing information between all parties can allow retailers and manufacturers to better manage current compliance requirements, as well as stay flexible, whatever the future holds.
Every packaging professional and anyone responsible for product specifications already knows that designing and managing packaging can be a headache. There are a number of considerations that need to be taken into account with product packaging: from listing the ingredients inside, through to the specifications on packaging sizes, to dealing with designers and third parties. Packaging is now an essential part of private label, but if retailers make efficient use of information and have a clear view into the packaging process they can keep products fresh and consumers engaged.
By understanding their level of risk and working to become more transparent, retailers and manufacturers can protect their long term future and the interests of their consumers.
Last week saw the GFSi’s annual conference, uniting figures from the retail and manufacturing communities.
It seems that food safety has barely been out of the news – most recently with reported cases of listeria in the US, and Iceland recalling own label fish products because they contained nut protein. At the same time, retailers are constantly looking to expand their ranges. The market for vitamins and dietary supplements is now expanding, with own label products offered by retailers increasingly competing with national brands. To make the most of this new opportunity, retailers and manufacturers need to make sure the mistakes previously made with food products are not repeated with vitamins and dietary supplements.
There’s been a lot of talk recently about discounters like Aldi and Lidl taking market share from more traditional retailers, but there is a lot that both sides can learn from each other. From improving efficiencies through to appealing to consumers in new ways, each has their strengths, as well as opportunities to innovate with private label.
The global market for private label food is worth 1.25 trillion Euros a year. While this is a massive opportunity for retailers and manufacturers, consumers are still very much in the driving seat and their behaviour changes by the day. To succeed in this competitive market, retailers and manufacturers will benefit from a closer understanding of both their customers and their competitors. With the right approach, retailers can keep on top of change and drive revenues in new areas.
The FSA’s Annual Report of Incidents 2013 has demonstrated just how much transparency is needed in the food supply chain. While there have been 43 fewer food incidents (1,562) in 2013 compared to the same period last year (1,604), there are some interesting trends that we can learn from for the year ahead.
It’s once again the time when wayward offspring around the country look to try and gain favour with their matriarch, remembering to be considerate on at least one day a year. This presents a great opportunity for retailers and manufacturers to expand much needed margins through promotions and products specifically geared towards Mother’s Day; and private label can provide great ways of tempting customers.
Consumer Confidence Index, consumer confidence is at a seven year high, and retailers are well placed to seize this opportunity because of the unique relationship they have with the customer. However, consumer trust is a delicate thing: hard to gain and very easy to lose. For any business, your customers need to have confidence in your ability to perform well and believe that you have their best interests at heart; and this is especially true in the food industry. While product scares around E. coli and botulism have led to product recalls and even loss of life, at no time has consumer trust been hit harder than after the 2013 horsemeat crisis.
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