Introduction
Analysis of many elements of the retail market should acknowledge that the demands placed on retailers by their customers are to some extent unpredictable, yet in many respects, are simply natural effects of broader social evolution. This brief addresses the challenges faced by retailers and explores how such challenges influence retailer-supplier relationships
Scope
Proliferation of information fuels consumer demand: Pressure is passed down the supply chain
Fickle consumers dictate a need for flexible relationships;
Retailer-supplier activities in 2006 hint at widespread implications for the future
Highlights
The growth of the Internet, and the rise in standard of living has generated aspirations that drive customers' expectations. Pressure felt by retailers. Indeed, suppliers are under as much pressure as the retailers, as retailers will not face the competitive burden alone and have passed on demands for lowest cost products and performance to them.
The focus of the brief forces us to examine 'flexibility' from its broadest possible viewpoint: - Supply chain processes that can be turned off and on when needed; - IT solutions that can be utilized when needed and not cost burdens when not; - Contracts that mitigate risk by ensuring provision for opposite ends of the scale of engagement.
It is consumer and market pressures that are driving retailer's activities. Collaboration will indeed be an important element of many of these issues but it is likely to be manifest in a stronger need for increased flexibility on the supplier's part, rather than improvements in working relationships.
Reasons to Purchase
Appreciate contributory factors and drivers which influence retailer-supplier dynamics
Understand how supplier- retailer collaboration is alive and well through necessity in an evolving market
Add relevant context to target audience dialogue