Page 6 - Logistics News June 2018
P. 6

Thought Leadership







            Optimising the supply chain:




                       Delivering value for all








                  Rodney Francis, Head of Strategic Marketing: CHEP Africa, and Helen Lane,
                Vice President of CHEP Northern Europe, discuss the trends and innovations in
                                                   last-mile solutions.




            LAST-MILE solutions (LMS), a key aspect of         worldwide are beginning to take an
            modern supply chain management, is gaining in      omnichannel approach. The days of the big
            relevance while also changing and expanding its    monthly shop may be numbered, as consumers
            meaning, as the fast-moving consumer goods         embrace a wider suite of shopping options,
            (FMCG) industry continues to evolve, placing       buying from convenience stores, wholesalers, as
            ever-greater importance on sustainability, digital   well as local and international online stores.
            solutions and delivering real value.                  Online shopping itself has various
               The traditional understanding that LMS is       manifestations, with diff erent implications
            merely the journey from a retailer’s distribution   for the supply chain. An online purchase can
            centre (DC) to the store is too simplistic         be fulfi lled by staff  that pick in-store at a
            an explanation of LMS. LMS combines                regular supermarket, or at a retailer’s purpose-
            merchandising, promotions tracking, platform       built ‘dark distribution centre’ for fulfi lling
            design and a holistic supply chain approach.       e-commerce purchases only. Then, there are
                                                               ‘pure-play’ online stores like Ocado in the
            Trends in the industry                             UK, which only off er online shopping. Supply
            LMS must serve the interests of all stakeholders   chains for all of these online solutions must be
            – manufacturers, retailers, wholesalers,           optimised to ensure on-shelf availability and in-
            consumers and the environment – to be most         time shelf replenishment.
            eff ective and sustainable. The challenge of
            reaching consumers is constantly evolving and      Innovations
            accommodates changing consumer preferences,        While online shopping is yet to fully develop
            living patterns, technology, retail strategies     in South Africa as it has in the UK, it is an
            and a growing social and environmental             indication of things to come. But innovation
            consciousness.                                     is no less creative in South Africa. There are
               As such, LMS is intimately aff ected by         exciting developments in pallet and other
            the trends in the supply chain management          distribution platform designs that can allow
            industry, while also helping shape these trends.   attractive, practical, new-generation, smart
            It is in the LMS area where most of the current    platforms to move from the distribution centre
            challenges and costs aff ecting the supply chain   direct to store and be installed in the aisle
            are felt. This is especially apparent when looking   ready for display – saving on packing costs and
            at on-shelf availability, store replenishment,     effi  ciency.
            promotional management and product display.           With new-generation platforms and pallets,
               In tandem with this has come a trend towards    embedded promotions-tracking technology
            smaller pack sizes, echoed by CHEP’s Helen         works hand-in-hand with LMS solutions,
            Lane, who reports a move back towards High         monitoring various metrics that ensure the
            Street convenience stores away from big-box        product is in the right place at the right time, in
            stores, as household sizes shrink and people       the right condition and optimising value.
            shop for less but more often.                         Technology being trialled in Europe by CHEP
               Besides this, shoppers in the UK and            allows for the following:


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