ARLINGTON, Va. — Chief executive officers at retail companies are recognizing supply chain management (SCM) as a key way to reduce bottom-line costs during the recession, according to a new study from Auburn University and the Retail Industry Leaders Association here.
The “State of the Retail Supply Chain Study” indicated that CEOs understand SCM “as critical to retailer success,” adding that the influence of SCM continues to expand up and downstream within the organization, to merchandising and store operations functions.
"Thanks to cost reduction initiatives introduced by supply chain management executives, retailers were able to tap into existing opportunities to streamline their supply chains, lowering their bottom-line costs and saving billions across the industry," said Casey Chroust, RILA’s executive vice president of retail operations, during a tele-press conference held Tuesday to discuss the report. "Moving forward these cost structure enhancements and efficiencies will enable retailers to thrive as the economy becomes healthy again."
"Supply chain management has played, and continues to play, a strategic role in retail organizations throughout the recession and remains a key driver of business success and competitive advantage in today’s challenging market," said Dave Reiff, senior vice president of national distribution for Wal-Mart Stores, who also participated in the press conference.
"Retail supply chain management involves much more than DC to store inventory movement," noted Brian J. Gibson, professor at Auburn University, and another participant in the press conference. "Retailers must establish best-in-class supply chain capabilities to remain competitive. This year, leading edge supply chain executives are pursuing agility, shelf-driven supply chain capabilities, and private-label manufacturing."
The study also cited several key issues that should be on the radar of SCM executives moving forward, including sustainability, fluctuating fuel costs, new government regulations, streamlining multi-channel supply chain operations and utilizing the latest technological advancements.
