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Articles in category: Retail & CPG/FMCG
Customer demand in today’s consumer-driven, omni-channel marketplace is more volatile than ever. Yet the majority of manufacturers are still using outdated production planning methods, such as spreadsheets and plant …(Read Full Article)
Shantell Mackay is the Group Manager for Procurement at Clover. Mackay says she took a roundabout route into the industry, via marketing and sales, security and risk management, until finding herself in performance and reporting in Transnet.(Read Full Article)
It’s not that unusual to hear stories about how some big retailers treat their suppliers – but it is unusual for a professional institute to come out and say this.(Read Full Article)
When President Jacob Zuma addressed the inaugural meeting of the Broad Based Black Economic Empowerment Council (B-BBEE Council) this week, he put emphasis on the urgency of implementing our economic policies so as to effectively transform its structure and that it reflects the country’s demographic.
Increasingly, fast-moving consumer goods (FMCG) brands see their suppliers not simply as vendors but as key assets in realising their business strategy. However, measuring the value of this strategic supplier relationship is difficult as so many of the benefits are often intangible. Nevertheless, these are the key factors that all stack up to build return on investment (ROI) into your strategic supplier relationship: 1.(Read Full Article)
Groceries Code Adjudicator Christine Tacon has launched her first investigation into the treatment of suppliers by a retailer. The supermarket watchdog has launched an investigation into Tesco's treatment of suppliers. Christine Tacon said she had “formed a reasonable suspicion” that Tesco had breached the Groceries Supply Code of Practice (GSCOP) after “considering information submitted to her relating to practices associated with the profit over-statement announced by the retailer in September 2014”.(Read Full Article)
Recently, McDonald’s, the world’s iconic largest food service provider, has been (forgive the cliché) through the grinder. Poor performance has led to the departure of its CEO and plenty of critical attention in the business pages. Part of this story relates to the provenance, or origins, of its products: Chains that provide more upmarket “fast casual” dining such as Panera, Chipotle, and Steak Shack have brands that speak of freshness, health, and trustworthy sourcing.(Read Full Article)
- Over the past few years, we have witnessed an ever-growing trend, in which large FMCG brands attempt to generate savings through aggressive procurement policies. In the marketing industry, this means 'pitching out' design projects to as many agencies as possible.
This may seem sensible when dealing with an apples-for-apples comparison of hardware, or a measurable service, but there are a number of good reasons why pitching out creative design will eventually destroy your brand.(Read Full Article)
Acquisition of Dangote Flour Mills hits group’s earnings, heightening ‘desire to make sure we don’t drop catches’, says CEO Peter Matlare.
Mr Matlare concedes that Tiger got it wrong when it came to assessing the competition in Nigeria as well as the country’s "commercial architecture" — or ways of doing business.(Read Full Article)
Sustainability in the restaurant world typically concerned how takeout and delivery options might cause recycling issues at home for consumers. However these days sustainability increasingly encompasses the food actually featured in establishment's menu just as much as it concerns what eco-friendly material the menus might be printed on.
Forward-thinking restaurant operators are more frequently utilizing marketing strategies that incorporate health, safety and environmental concerns.(Read Full Article)
PIONEER Food Group will try to sell its Pepsi bottling plants if they cannot be used elsewhere in the group, CEO Phil Roux said on Monday after Pioneer announced that it would stop producing Pepsi by the middle of next year.
Pioneer impaired its Pepsi bottling business by R34m in its year to end-September, after incurring further losses from the unit as a result of insufficient volumes.(Read Full Article)
From January 2015, a single online sustainability community will bring together existing supplier networks with the Tesco Producer Network, which serves fresh food producers and the Tesco Knowledge Hub, which serves branded manufacturing and processing suppliers.(Read Full Article)
EACH year Pick n Pay procures about R40bn of fresh-food products from South African suppliers, David North, the group executive of strategy and corporate affairs at the retailer, said on Wednesday.
Retailers are constantly striving for balance between having world-class global offerings without compromising local procurement responsibilities. Like consumers elsewhere in the world, South African customers prefer to buy a food product if it is produced locally.(Read Full Article)
Supply chain professionals are "masters of the universe" because of the growing importance of their role in firms, says Huw Waters, supply chain director at Procter & Gamble.(Read Full Article)
FAMOUS Brands has delivered an 18% rise in headline earnings per share to (HEPS) 212c in the six months to August, boosted mainly by its logistics and manufacturing operations and improved efficiencies.
The fast food group said on Monday that revenue was up 14% to R1.57bn from the year-earlier period, with operating profit up 19% to R303m.
The company said while the front-end franchised operation delivered a satisfactory performance — reflecting reduced consumer spend across certain mainstream brands — the back-end logistics and manufacturing businesses made a significant contribution to the group’s overall results(Read Full Article)
There is a massive opportunity in South Africa for logistical and transport companies dealing with fast moving consumer goods (FMCG), according to Nicholas de Canha, CEO of Imperial Fleet Management.
“The transportation of fast moving consumer goods has experienced a significant growth of late in South Africa and Africa."
In South Africa, for instance, imports of containers into Durban ports increased by 5% in 2013. Most of the imports into Gauteng are consumer goods.
"While a fair amount of investment is being made by various stakeholders to upgrade the country’s rail networks to be sufficient to meet future demand,(Read Full Article)
Commission finds no evidence of anticompetitive conduct from exclusive supply agreements between Aspen Pharmacare, Mylan Inc and its affiliates(Read Full Article)
Professor Chris Elliott’s long-awaited review of the food industry, which was commissioned in the wake of the horse meat scandal, is expected to be published imminently. Based on the review’s interim findings published last December, Elliott is likely to recommend the introduction of a new requirement for all parties operating or managing the food chain to put consumers’ interests first over all other aims and for laboratory services to use standardised, validated methodologies for inspecting food. Having previously warned that the sector is a “soft touch for criminals,” the review is also expected to call for the creation ...(Read Full Article)
Public benefit organisation Boycott, Divestment and Sanctions in South Africa (BDS SA) on Monday vowed to step up its protest action against Woolworth for "refusing to resolve the issue of the company trading with Israel".
This comment by BDS SA's Kwara Kekana follows protest action on Saturday, which led to the temporary closure of the Woolworths store in Rosebank, Johannesburg. The protest there included a flash mob outside the store and the distribution of pamphlets on why shoppers should boycott Woolworths.(Read Full Article)
It means that the hundreds of thousands of farms that supply Nestlé with its dairy, meat, poultry and eggs will have to comply with tighter animal welfare standards. Nestlé said it is the first major food company to form an international partnership with an animal welfare NGO.(Read Full Article)
DISTELL Group has earmarked more than R500m for investments into various African countries and it will partly fund the war chest through a cost saving and supply chain efficiency programme, the liquor group said on Monday.
Meanwhile, it announced that group revenue from Africa outside South Africa grew 20% in its year to June, helping overall revenue rise 12.8% to R17.7bn.
The weaker rand and the first full contribution from Scotch whisky business Burn Stewart Distillers, bought last year, also boosted revenue.(Read Full Article)
The old assumptions driving supply chain design and strategy were focused on achieving the lowest possible cost of goods and the most efficient distribution to stores. Today, a new model is emerging, not driven by enterprise technology or supply chain innovations - but by customers. In the omnichannel retail world, almost every single store-driven assumption about supply chain is being challenged and getting replaced by a digital-driven future.(Read Full Article)
On 26 June 1974 - just over 40 years ago - a pack of Wrigley’s Juicy Fruit chewing gum became the first item to be scanned at a supermarket checkout, a year after the retail industry adopted the GS1 barcode as a unified standard for identifying and tracking products. Today, barcodes are still an integral retail technology and part of the high street experience.
According to GS1, the not-for-profit organisation that monitors demand chain standards, the barcode has created huge efficiencies in the supply chain, enabling 21 per cent shorter lead times for warehouse operators, 42 per cent lower costs for ...(Read Full Article)
CLOTHING chain Truworths International said it is committed to Nigeria and will not follow Woolworths out of Africa’s most populous nation.
The growth potential of the continent’s biggest economy outweighed high rental costs and difficulties in obtaining supplies, CEO Michael Mark said at the company’s headquarters in Cape Town on Thursday. "We were making losses, but I don’t think we will in the future."
He said that the retailer planned to reduce the size of its four stores in Nigeria to cut costs and will also reconsider the type of clothes for sale to appeal more ...(Read Full Article)