Grocery supply chain is set for roller coaster rise

By Rick Pendrous

- Last updated on GMT

Food supply chain set for roller coaster ride

Related tags Supply chain Supply chain management

Amazon looks set on making a major land grab for Britain's food and drink market. Having embarked on a raft of new initiatives, covering everything from a collaborative venture with Morrisons to moves into home food deliveries in London, the online retail giant clearly has big ambitions to roll out ideas already tested Stateside.

But that is not the only problem that UK major multiple retailers face. There is intense competition from the likes of Aldi and Lidl not to mention from each other; deflationary food and drink pricing; and the rise of the savvy food shopper, who wants high quality, convenience and low prices.

Oh, and there are the consequences of the Brexit vote, which, although nobody knows for sure, look like being a game changer.

Forcing manufacturers

Together with the rise in internet sales of food and drink, these affects are inevitably going to feed back into the grocery supply chain, forcing manufacturers, and their raw material suppliers, to respond accordingly.

As our Supply Chain & Logistics​ supplement reports, there is much beyond the power of manufacturers to control, for example, issues of migration policy, trade agreements, fiscal policy and regulation.

However, some experts argue that manufacturers can control their own customer proposition, sourcing and supplier base, capital investments, production and distribution networks, together with their employees' talent and skills levels.

Article 50 starting gun

At the risk of being clichéd about the new world order whatever that ends up being after Prime Minster Theresa May finally fires the Article 50 starting gun signalling our divorce from the EU as well as threats, there will be many opportunities for the agile and fleet of foot to grab.

New technologies and new ways of collaborating will be essential in driving efficiencies along the supply chain to meet new demands. And, in this new world, speed of response and waste reduction will be key.

Related topics Supply Chain

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