Comment: Transforming supply chains is top priority

Behind the scenes, retailers are working around the clock to modernise their back-end systems and build new technology infrastructure that can cope with the sharp upswing in consumer demand online.

For many, the need to completely overhaul their old supply chain means they are turning to third-party logistics providers for the infrastructure and processes they already have in place. The report on page 25 analyses the benefits and drawbacks of outsourcing to logistics providers to fulfil demand for faster fashion at the click of a button.

Another factor taxing the limits of supply chains is ease of returns. The feature on fashion explores who is at the top of their game when it comes to fast handling of returns and how retailers are overhauling and redeveloping their returns procedures.

Sainsbury’s is only too familiar with the need to respond to new demands on its distribution chain. With its general merchandise business growing at twice the rate of food, the grocer is opening a new distribution centre to support mounting sales.

And it’s not just Sainsbury’s that is looking ahead. Significant changes to the wider food supply chain are taking place across the board after last year’s horse meat revelations. A year on from the scandal and retailers are upping their game to stamp out procurement fraud and avoid future supply chain problems.

Stepping outside of retail and a host of global supply chain leaders are finding new and innovative ways to overhaul existing systems and infrastructures. Household names such as Coca-Cola, Dell and McDonald’s are improving long-term stability and profitability by integrating demand, supply and product into a supply chain network that meets ever-shifting changes in demand.

By understanding what they’re doing, the retail industry can apply lessons to its own supply chain strategies and make them perform better than ever before.