Critical Issues...
Critical issues affecting the retail supply chain and in store technology

Launching a product is by no means easy. Whether it's a new type of cereal or a new type of service, an awful lot of planning and attention to detail is required. No more so than in retail, where more and more products are being launched every day. Out of the many thousands of new products being touted as the next best thing since sliced bread, only a few succeed.

With so many products destined to flop, some technology companies offer solutions that promise to overcome the high risks of possible failure. Leading consumer goods manufacturers, like Kellogg's or Coca Cola, have always invested heavily in product development and launches, often using Product Lifecycle Management (PLM) software to ensure that everyone involved - from the early design stage right through to packaging of the finished goods - are totally in sync with each other, working to common, profitable goals.

"PLM technology allows companies to quickly adopt IT best-practices and processes, which simplifies and increases the speed of new product launches," says Jeremy Whinnett, Director of PLM at Agentrics, a retail and supply chain software vendor.

Retail product launches can typically take anything between ten and forty weeks to prepare, and sometimes double that in the US, because of the vast quantities of information and numerous suppliers involved, he says.

"Whether it's to verify products' ingredients, labelling or supply chain details, everything becomes so much more transparent and easier to use with a centralised database of pertinent information."
 
Winning Ingredients
Sharing accurate, consistent information between brand managers and buyers has made the practice more widespread. Supermarkets and retailers have long been keen to get in on the act and are launching their own brands, with hundreds of new lines hitting our shelves every week. According to research by the Institute of Grocery and Distribution, the growth of private label in Europe is set to continue, with sales expected to top 500 billion Euros in 2012 and almost half of all sales being attributed to own-label brands.

Our changing shopping habits and emerging trends for replacing national brands leaders with often cheaper (and at times superior), rival own-brand products is causing shockwaves in the industry. Leading supermarket chains like Asda and Marks & Spencer in the UK, or Auchan in France, have become wise to the commercial benefits of launching successful own-brand products, with many now using PLM software from specialist companies like Agentrics.

Increased consumer demand for products which are more sustainable and competitively priced is putting greater pressure on retailers to compete head on with national brands – fuelled in part by the economic recession and rising prices. New regulatory requirements and food safety standards are also paving the way for retailers having to quickly and efficiently ensure that any products in the supply chain are backed up with sound, accurate information. For instance, a food company might have to substantiate claims that a product definitely contains no nuts and was 'Made in the UK', as stipulated on the label; while a hard goods retailer might have to suddenly dispel media claims that items were unethically sourced using sweatshops in the Far East. Even during the recent contaminated German egg food scare, supermarkets had to be able to quickly identify and point out that no products were at risk, or otherwise be seen to remove any tainted products immediately from the shelves.

Retailers the world over are investing a lot into making sure their products are living up to the constantly changing needs and wants of the consumer. Whether it's for greener, more environmentally friendly products, Fair Trade coffee, or less salt and organic ingredients in ready meals, supermarkets today are managing to stay one step ahead of the pack. For the consumer, having peace of mind that a supermarket is seen as being more sustainable, or products that are more clearly labelled, is having a major impact on how people shop. Technology, it seems, is a key ingredient.