Retailers Would Benefit From Focusing More On Global Supply Chains

In an effort to capitalize on improving economic conditions and consumer optimism, a number of major retail brands are investing in the shopping experience by developing mobile applications and e-commerce platforms that make it easier for customers to spend money.

However, retail expert Clare Rayner suggests these merchants may have their priorities mixed up. Instead, she argues, they should be focusing on improving their global supply chains. This will help them to better meet rising consumer demand while further streamlining their operations.

"It is as if their core commercial processes - supply chain planning and distribution systems - have been de-prioritized by retailers in favor of spending budgets on new apps, mobile websites and so on. I believe that retailers that are not investing in revitalizing the day-to-day operational areas of the business are putting their businesses at risk," Rayner adds.

Retailers that do implement supply chain technology and best practices will be better able to capitalize on improving market conditions as well, she stated.

Audit firm KPMG believes many retailers are shifting from cost containment to growth acceleration, which is why they are focusing more on new innovations rather than developing their supply chains.