Challenging environments can make us think outside the box for innovative solutions beyond the obvious.

The food and grocery industry is testament to this, having adapted to recent global economic changes swiftly and decisively.
 

Supply chain flexibility

From sea changes in key strategy, to smaller shifts in everyday working routines, we have all witnessed how creative our pressurised industry can be.

The downturn and market volatility have meant that modifications to supply chain processes have had to be created and embedded effectively. UK retailers continue to seek competitive advantage through differentiation, being the first-to-market and delivering more value to shoppers. In these difficult times there is even more need for supply chains to out-perform previous targets.

These factors, coupled with changing shopper behaviour, have forced supply chains to become flexible, fast-adapting creatures that are open to change. In-store replenishment is just one area that has come under the spotlight.
 

Shelf Ready Packaging in a Sainsbury's store

Replenishment - where can you innovate?

As retailers focus on range rationalisation, many have taken the opportunity to adjust packaging, hold more stock in front of the shopper and reduce out-of-stocks.

Recent examples of in-store replenishment innovation include Asda’s work to bolt down all grocery gondola ends. This effects the safe removal of their base shelves so all of their promotions can be merchandised using merchandisable units (MUs). Tesco has looked for improvements by piloting sprung-loaded pushers that face-up the product as it is shopped.

Our industry is constantly looking for new and more effective solutions for in-store replenishment and this area will continue to develop at a rapid pace. We've outlined some steps that will help you succeed:

• Get everyone involved - Engage with trading partners to understand key factors driving opportunities, cut through confusion and align performance criteria
• Roll your sleeves up - Undertake work to replenish in-store to reveal opportunities to improve routines, packs and equipment
• Get out there and do it - Don’t assume this can be done on paper, at the desk or just from observation
• Look around - Understand what your competitors are doing and what solutions exist for different categories and markets
• Network and learn - Use any available common platforms such as the ECR UK Retail Ready Packaging Best Practice Guides
• Get everyone involved again - Take an integrated cross-functional approach, challenge the status quo and push back the boundaries
• Test, test, test - Trial new packaging treatments (or mock-ups) in-store (or a virtual store) to see how shoppers respond

Remember, whatever steps you take towards improving the service you offer, it is important to evaluate your performance along the way and keep on top of the latest industry news and developments.
 

More information:

	Supply Chain Analysis - Store Replenishment Innovations
	For more information on in-store replenishment innovations, Supply Chain Analysis subscribers can download our new Special Focus presentation.

	Packaging & Product Resource Efficiency
	IGD's one day event focusing on packaging, product waste and resource efficiency solutions for the food and grocery industry. Hear leading retailers, manufacturers and opinion formers explore sustainability issues, demonstrate good practice and discuss new ideas to help you maximise opportunities.

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James Tupper is ECR Learning & Change Manager at IGD, with 20 years experience of developing people and business performance in the food and grocery industry across Europe, Asia and Africa. His main area of focus is Efficient Consumer Response (ECR) and learning programmes.

James creates and facilitates performance improvement programmes during which cross-functional trading partner teams learn-by-doing together, achieving £M business benefits.