Scottish retailers need new focus
Scottish retailers need to be more creative at forging stronger and more competitive supplier relationships rather than focusing on cutting costs, according to new research from the Government-funded programme, Envirowise.
The research found that while more than three quarters (80%) of retailers and wholesalers surveyed in the region said the management of their supply chain was 'very important' to them, 48% of the same group admitted to shopping around for cheaper suppliers during tough economic times.
During difficult periods, 39% of respondents push suppliers to cut prices and 35% seek to reduce the number of suppliers they use. Few are putting in place the kind of collaborative programmes and processes that can underpin competitiveness and flexibility, and these figures suggest that whilst retailers in the region are in regular contact with their suppliers, they are not truly collaborating with them,' said Envirowise Programme Manager for Scotland, Alan Hendry. 'Through the Envirowise Retail Therapy programme, these companies have identified the benefit of taking a more creative approach to supply chain management. Retailers and their suppliers across Scotland, whatever the size of the business, can learn from this creative approach and begin to look at ways of making their own supplier relationships stronger and more competitive, and not simply focusing on cutting costs.'
Businesses can source free, confidential advice on improving their supply chain and becoming more resource efficient by visiting Envirowise website or by calling the Environment and Energy Helpline on 0800 585 794.
The research found that while more than three quarters (80%) of retailers and wholesalers surveyed in the region said the management of their supply chain was 'very important' to them, 48% of the same group admitted to shopping around for cheaper suppliers during tough economic times.
During difficult periods, 39% of respondents push suppliers to cut prices and 35% seek to reduce the number of suppliers they use. Few are putting in place the kind of collaborative programmes and processes that can underpin competitiveness and flexibility, and these figures suggest that whilst retailers in the region are in regular contact with their suppliers, they are not truly collaborating with them,' said Envirowise Programme Manager for Scotland, Alan Hendry. 'Through the Envirowise Retail Therapy programme, these companies have identified the benefit of taking a more creative approach to supply chain management. Retailers and their suppliers across Scotland, whatever the size of the business, can learn from this creative approach and begin to look at ways of making their own supplier relationships stronger and more competitive, and not simply focusing on cutting costs.'
Businesses can source free, confidential advice on improving their supply chain and becoming more resource efficient by visiting Envirowise website or by calling the Environment and Energy Helpline on 0800 585 794.
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