Analyst opinion: Chris Irish looks at who's influencing in global reusable merchandising solutions.
We will soon be publishing a piece of research which looks at the use of reusable merchandising solutions around the world. Before we publish the research in full, I want to share a couple of key findings…
These types of solution, present in supermarkets around the world, can support significant supply chain efficiencies. However, any decision to use them requires input from across the organisation, and we found that the key trading partner driving the use of these solutions varies by market.
While most did identify retailers as the key driver in both developed and developing markets (as described by the IMF), the research found that retailers are less influential in any decision to use in developing markets. In these markets, 24% of respondents identifed manufacturers as the key driver of use, with 39% identifying retailers as the lead. 37% said both had equal influence.
The story is quite different in developed markets, where only 15% identified manufacturers as the main driver of use, with 49% identifying retailers as the lead. 36% said both had equal influence.
It may be that in regions (such as Latin America, which has a more fragmented retail market and fewer dominant players), brands are able to have a bigger influence. One of the major challenges in developed markets is the lack of a standard approach to equipment by retailers. As a result, producton of units can be inefficiecint for manufacturers, with a different configuration needed for each retailer. This may explain why manufacturers tend not to lead any decision to use these types of equipment in these markets.
Want to see more on this subject? Keep an eye out for Reusuable merchandising solutions: unlocking the potential, which will be available on Supply Chain Analysis in the next few days.