The supply chain depends ultimately on people

Despite the retail supply chain depending on myriad systems, vehicles and machinery, running an efficient operation depends ultimately on people.

The importance of the supply chain workforce is a reoccurring theme in this supplement. In the interview with Sainsbury’s logistics director Dave King, it is clear many of the huge improvements that have been made to the grocer’s once-notorious on-shelf availability problems have been possible because of its focus on people.

What’s more, the grocer has removed some of the automation in its depots in favour of manual picking because of problems that were arising through an over-reliance on machinery.

In the feature on improving warehouse efficiency, Musgrave Retail Partners GB supply chain director Scott Wharton goes a step further, saying: “I don’t believe automation has a role in our industry.” This may be controversial, but humans are far more flexible than machines and ultimately, a successful supply chain depends on the ability to adapt and react quickly.

Meanwhile, in the discussion on how retailers can reduce inventory, Homebase commercial planning director Richard Morgan stresses practical measures, such as better analysis of information, can be hugely beneficial in improving inventory management without necessarily having to invest in more systems.

Of course, investment in systems can also help save cash and has no doubt been crucial in modernising the supply chain, but at a time when cash is tight, investment in supply chain teams is more likely to bring about greater efficiency - and thus cost savings - in the immediate term.