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:
10 June 2018 | Logistics News