File

FMCG & Retail Report
Sourcing from and selling

to international markets
represents a complexity challenge
for most supply chains and
many are struggling to keep
up with increased demand
and complexity.
Survey conceptualised and initiated by Research Results

The 2007 supplychainforesight survey
is a comprehensive, independent study of the
issues facing the South African
supply chain and logistics market.
Key Learnings
In 2006, the national study of the South African supply chain industry,
supplychainforesight, included an industry-specific report on South Africa’s FMCG
and retail industries, as part of a set of industry-based analyses. The interest from
the FMCG and retail industry last year has led to a refinement of the research for the
sector this year.
As with last year’s research, we have endeavoured to elicit a comparison between

the two parts of the industry, the FMCG sector who supply to retailers, and the
retailers themselves, in terms of their views of the industry’s objectives and challenges
regarding their supply chains, and their own understanding of trends, costs, skills
and other issues.
In industry terms, the FMCG and retail sectors, if taken together, are again the biggest
participants in this year’s research, with a combined total of 39% of the sample. This
broke down to 19% from the ‘food, beverage and consumer goods’ sector, and
20% from the retail sector.
Figure 1 Primary industry in which your company competes?
Retail 20%
Food, Beverages & Consumer Goods 19%
Oil, Fuel & Chemicals 16%
Automotive 8%
Building, Construction & Engineering 8%
Steel & Other Materials 4%
Mining & Quarrying 4%
Information Technology & Communications 4%
Paper & Packaging 3%
Government Services & Parastatals 3%
Pharmaceuticals & Healthcare 2%
Logistics & Supply Chain Services 2%
Insurance & Financial Services 1%
Agribusiness 1%
Other 6%
0% 5% 10% 15% 20% 25%
The significant size of the sectoral participation once again enables us to draw
interesting comparisons between the attitudes, objectives and challenges of the
supply and demand sides of this market.
The sample group shows an authoritative seniority. In the sample from the retail
sector, 73% of respondents come from companies with over R1bn in turnover. CEOs
form 10% of the total sample, and supply chain and logistics directors and managers
(SCLM) form a further 50%.
The FMCG sector shows a similar profile, with CEO participation at 8% and SCLM
even higher at 72%.
1
Key Learnings
Overall, service and cost issues once more predominate for both supply and demand
side respondents, but there has been significant change, from the retail perspective,
about how to strategically respond to the continued, and deepening, cost and
service pressure.
Globalisation and Industry Leadership
All of the CEO respondents in the retail sample group profess to be affected by
globalisation, and fully 89% of them view the impact of globalisation in the next
three years as positive. Retail CEOs expect significant competition from the traditionally
strong markets of Western Europe and the US, but also the emerging market
powerhouses of China and India, just as with the overall sample group.
Figure 2 What impact will globalisation have on your

organisation within the next three years?
Retail: CEOs, MDs and GMs
Don’t know 0%
Very negative 0%
Somewhat negative 11%
Neutral / no impact 0%
Somewhat positive 67%
Very positive 22%
0% 10% 20% 30% 40% 50% 60% 70% 80%
The main areas of the impact of globalisation expected by retail leadership is in the
extension and complexity of supply chains which it will bring – a prospect which, as
we shall see, is causing a significant strategic shift in the retail mindset.
89%
89%
of CEOs, MDs and GMs in the retail
sector see globalisation as having a
positive effect on their business
2
Key Learnings
Figure 3 To what extent will globalisation impact your business in terms of:

100%
90%
88%
80%
70%
63%
60%
50%
50%
50%
50%
40%
38%
38%
38%
38%
30%
25%
25%
25%
20%
13%
13%
13%
13%
13%
13%
10%
0%
0%
0%
0%
0%
0%
0%
New markets New Innovation Segmentation Extended supply Complexity of

competitors chains supply chains
Strong impact Fair impact Low / No Impact Don’t know
63%
63%
of CEOs, MDs and GMs in the retail sector
believe that globalisation will have a
strong impact on the complexity of their
supply chains
3
Key Learnings
When asked in which regions of the world retail CEOs are doing or are planning to
do business, unsurprisingly for the industry a substantial 40% are selling in Southern
Africa. Other areas of downstream business are in Australia, the rest of Africa and
the Middle East. The retail industry already has a well-established footprint,
predominantly in the Southern African region, but these figures show an extending
reach into the rest of the world as the industry grows beyond its SA origins, a process
which brings with it new challenges to the supply chain.
Figure 4 In which region(s) do you currently or plan to do business?

4%
Rest of Africa 20%
7%
Southern Africa 40%
4%
Australia 20%
14%
Rest of Asia 0%
18%
India 0%
21%
China 0%
7%
Middle East 20%
14%
Western Europe 0%
4%
South & Central America 0%
7%
USA, Canada & Mexico 0%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Downstream (Sell to) Upstream (Buy from)
Retail CEOs are being driven to do business globally in order to increase capacity and
reduce costs, presumably through the sourcing of cheaper goods. Both these main
drivers indicate a healthy and robust industry gearing for further growth. In common
with the general picture of the supplychainforesight study this year, retail CEOs
are planning to form strategic alliances with global partners and are planning mergers
or acquisitions globally – signs that the SA industry is venturing further onto the
global stage. But for the moment, the dominant global activity for this sector is the
sourcing or importing of finished goods.
4
Key Learnings
Figure 5 Which of the following reasons drove / are driving your decision to
do business globally?
Retail: CEOs, MDs & GMs
Access to skilled talent pool 0%
Service existing customers 24%
Access to new customers

18%
Increase capacity
29%
Reduce costs
29%
0% 5% 10% 15% 20% 25% 30% 35%
Figure 6 Which of the following actions is your organisation currently

and/or planning to take globally within the next three years?
0%
Selling of services 8%
11%
Selling / exporting finished goods 8%
Forming strategic alliances with 22%

8%
foreign partners
22%
Engaging in mergers and acquisitions 0%
Off-shoring manufacturing activities 11%

0%
within your own company
11%
Outsourcing manufacturing activities 8%
to a third party
11%
Sourcing of services 8%
11%
Sourcing / importing of finished goods 50%
Sourcing of raw materials or 0%

8%
components
0% 10% 20% 30% 40% 50% 60%
Planning Currently
5
Key Learnings
The challenges to sourcing and selling globally show both similarities and differences
to the general picture. Trade barriers and currency fluctuations are the main challenges
to sourcing globally, the former for example probably reflecting the frustration of
retailers with the changes in government thinking regarding the protection of the
textile and garment fabrication industries. Challenges to selling globally are currency
and corruption. Currency fluctuation is in common with the general report, and
reflects the difficulty the sector has experienced over the past years with an
unstable Rand.
Figure 7 How challenging do you consider the following to be in terms of

sourcing globally?
90%
83%
83%
80%
70%
67%
67%
67%
67%
67%
60%
50%
40%
33%
33%
33%
30%
20%
17%
17%
17%
17%
17%
17%
10%
0%
0%
0%
0%
0%
0%
nis /
su d
ta tica l
pit l
at ncy
ion
m
ins poli itica
ca ctua
tio ers
l is an
ris
m
es
bil l
s
al
pt
ion
ctu rre
ec rri
rro
cia al
ity
e
n po
rru
so ltur
ot a
ell
flu Cu
Te
pr de b
Co
tio in
int
Cu
ec es
/
of
Tra
dir ang
ss
Lo
Ch
Not a challenge Somewhat challenging Very challenging
6
Key Learnings
Figure 8 How challenging do you consider the following to be in terms of

selling globally?
120%
100%
100%
80%
80%
80%
60%
60%
40%
40%
40%
40%
40%
40%
40%
40%
20%
20%
20%
20%
20%
20%
0%
0%
0%
0%
0%
0%
nis /
su d
ta tica l
pit l
at ncy
ion
m
ins poli itica
ca ctua
tio ers
l is an
ris
m
es
bil l
s
al
pt
ion
ctu rre
ec rri
rro
cia al
ity
e
n po
rru
so ltur
ot a
ell
flu Cu
Te
pr de b
Co
tio in
int
Cu
ec es
/
of
Tra
dir ang
ss
Lo
Ch
Not a challenge Somewhat challenging Very challenging
As far as objectives for their supply chains are concerned, retail CEOs are, perhaps
surprisingly, very concerned to establish more collaboration with suppliers and
customers. This ranked even higher than the usual dominant objective of increased
service to customers, which was also behind reducing investment in inventory. The
highest rated challenges demonstrate a developing understanding of the business
benefits of a more effective supply chain, particularly an understanding that cost and
service objectives can be realised through a collaborative supply chain approach with
suppliers on board as partners rather than adversaries. The relatively high score for
“Redefine our supply chain” would tend to support this view.
80%
80%
of CEOs, MDs & GMs in the retail sector
consider currency fluctuations and
corruption as great challenges to
selling globally
7
Key Learnings
Figure 9 Supply chain objectives for the next year
Integrate our logistics functions 1%
Train and up-skill staff 4%
Redefine our supply chain strategy 8%
Improve flexibility and agility of the supply chain 1%
Improve information visibility 3%
Improve co-operation / collaboration in the supply chain 14%
On-time deliveries 2%
Ensure on-time outbound deliveries 7%
Ensure on-time inbound deliveries 3%
Decrease lead times 6%
Improve asset utilisation 6%
Improve service offered to customers 8%
Reduce out-of-stocks / increase shelf availability 5%
Reduce investment in inventory 10%
Lower outbound transportation costs 3%
Lower warehousing and distribution costs 6%
Lower inbound transportation costs 1%
Lower sourcing / procurements costs 4%

Other 6%
0% 2% 4% 6% 8% 10% 12% 14% 16%
The highest rated challenges by CEOs this year were ‘creating supply chain collaboration
opportunities’ and ‘achieving a common supply chain vision’, just ahead of ‘increased
volume in our supply chain’. As in the overall report this year, SA’s booming economy
and growing globalisation is increasing volumes uncomfortably for the retail supply
chain, and these chains seem to be creaking under the pressure. But the achievement
of a common supply chain vision is a new challenge in the overall context of the
research. It indicates the new, more strategically-based thinking of retail CEOs about
their supply chain strategy, which as we shall see, has leapt ahead of their FMCG
supply side counterparts. Once again, skill levels are seen as a major challenge to
the successful achievement of their objectives, indicating that solutions may well be
found from consultants and 4PL players.
8
Key Learnings
Figure 10 Challenges to meeting the supply chain objectives
Aligning our skills to meet the supply chain strategy 8%
Skills and capabilities of our supply chain staff 2%
Integration of our IT systems 3%
Information integrity and access 3%
Capabilities of our existing IT systems 1%
Redefining our supply chain 7%
Creating supply chain collaboration opportunities 11%
Achieving a common supply chain vision 11%
Our planning and forecasting capabilities 3%
Benchmarking and auditing our supply chain performance 5%
Integration of our logistics functions 8%
Finding suitable outsource partners 2%
Our warehouse management capabilities 6%
The diverse needs of our customers 5%
The increase complexity of our supply chain 3%
The increased volume in our supply chain 10%
Our distribution network 6%
Our sourcing and procurement practices 3%
Other 4%
0% 2% 4% 6% 8% 10% 12%
11%
11%
of CEOs, MDs and GMs in the retail sector
view the creation of supply chain
collaboration opportunities as a challenge
9
Key Learnings
Building FMCG/Retail Relationships?
The overall picture of the Supply Chain and Logistics Managers (SCLM) in the retail
and FMCG sectors offers instructive comparisons of their differing positions in the
supply chain. The main objectives of the retail group, as with the CEOs responses,
relate to service improvements, but the SCLM retail group, as with their CEOs, also
demonstrate a strategic awareness in placing collaboration, redefinition of supply
chain strategy, and improving flexibility and agility, as major objectives.
Retail: SCLMs
Ensure on-time outbound deliveries 1%
Ensure on-time inbound deliveries 2%
Improve cash flow 2%
Lower the costs of manufacturing 2%
Lower the costs of direct purchases 1%
Lower sourcing / procurement costs 4%
Other 2%
0% 2% 4% 6% 8% 10% 12% 14%
The FMCG SCLM group are far more concerned with reducing out of stocks and
increasing service levels than their retail customers. This is not surprising given the
dominant role that retailers play in this supply chain, and the fact that until this year
the predominant method of attempting to drive service levels up by retail was to
apply pressure to FMCG suppliers. Clearly the changing attitude of retail leadership
is driven by the inability of FMCG to make meaningful improvements without the
active collaboration of the retail sector, and the willingness to reform and redefine
their supply chains which is now evident. This emerging attitude should provide
FMCG companies with a new opportunity to deal with long outstanding issues and
inefficiencies.
10
Key Learnings
FMCG: SCLMs
Improve cash flow 5%
Lower the costs of manufacturing 7%
Lower inbound transportation costs 1%
Lower sourcing / procurement costs 5%
Other 1%
0% 5% 10% 15% 20% 25%
The differences between the retail and FMCG SCLM objectives indicate clearly that
the FMCG group are responding to immediate service and delivery pressures, while
the retailers are looking to strategy to improve supply chain performance and meet
the challenges of increased volumes and complexity. Importantly, as we have mentioned,
the fact that the sector with the power to redefine supply chain relationships is retail
should give the whole supply chain hope that real improvements should be just
around the corner. Where previously the dominant quality of the buyer/salesman
relationship was adversarial, collaboration, redefinition and reform of the supply
chain are now definitely on the agenda - although this collaborative effort is unlikely
to diminish a good healthy debate on the pricing variable!
The main challenges for both groups corroborate the view that there is a relationship
shift initiated by the retail group. The retail challenges for SCLMs focus strongly on
the perennial planning and forecasting capability, but the top challenge, rated at
13%, to realising the objectives of service improvement and collaboration is that of
achieving a common supply chain vision – a factor that is not nearly as strongly
indicated in the overall report, where it rates for only 7% of respondents.
While the common vision desired by the retail grouping is shared to some extent by
both the supply and demand side of the FMCG/retail supply chain, other challenges
for the FMCG group reflect a much more tactical viewpoint. By far their greatest
challenge is their planning and forecasting capability, followed by skills, and the
11
Key Learnings
increasing volumes and complexity of their supply chains. These indicate that the
suppliers are struggling with the volume and complexity challenge brought by
globalisation and the increases in demand from buoyant local markets in particular.
Retail: SCLMs
Availability of skills development / training programmes 1%
The increased complexity of our supply chain 7%
Other 1%
0% 2% 4% 6% 8% 10% 12% 14%
21%
21%
of supply chain and logistics directors
in the FMCG sector rate ‘reduce out-
of-stocks’ as a prime objective
12
Key Learnings
FMCG: SCLMs
Availability of highly skilled outsource partners 2%
Our task planning and scheduling capabilities 5%
The increased complexity of our supply chain 9%
Other 4%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
These differences demonstrate that suppliers are not taking the strategic route to
overcoming the demand and complexity issues evidenced by the shift in retail thinking.
Instead, they seem more focused on tactical and delivery issues. They seem not to
be reacting to the changes in attitude of the retail group. It’s almost as if the change
in retail’s approach from a tactical, master/servant approach to FMCG suppliers, to
a collaborative and more strategically-based approach has not yet been communicated
to their supply chain “partners”.
The difference in the view of strategy taken by both groups is further evidenced by
the response to the question about strategic alignment. For the retail group, fully
60% of the sample believe the supply chain strategy to be only partly aligned or
worse to the business strategy.
13
Key Learnings
Figure 15 How aligned is the supply chain strategy to the

business strategy?
Retail: SCLMs
There is no formal supply chain strategy 17%
Not aligned to the business strategy 3%
Partly aligned to the business strategy 40%
Mostly aligned to the business strategy 27%
Fully aligned to the business strategy 13%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
On the other hand, 80% of the FMCG group profess their supply chain strategy to
be fully or mostly aligned to the business strategy, but this alignment is almost
certainly to yesterday’s reality of little or no willingness from the retail sector to
collaborate around supply chain reform.
Figure 16 How aligned is the supply chain strategy to the

business strategy?
FMCG: SCLMs
There is no formal supply chain strategy 0%
Not aligned to the business strategy 4%
Partly aligned to the business strategy 16%
Mostly aligned to the business strategy 52%
Fully aligned to the business strategy 28%
0% 10% 20% 30% 40% 50% 60%
In summary, from the retail sample’s point of view this result indicates a realisation
that the supply chain strategy needs to change, but is not yet aligned to the business
strategy - as indicated by their objectives and challenges. For the FMCG sample, the
notion that their strategies are aligned is a reflection of their fulfilment of a previous
strategic approach – focused on service levels and fulfilment of retailers’ inventory
requirements. This type of relationship seems to be about to change, a change
occasioned by a different retail strategy, and enabled by the retail sector’s level of
power in the supply chain.
Driven by the need to change and align the supply chain strategy to new market
demands, there is also a much greater involvement by CEOs and senior managers
in the supply chain strategy than we have seen previously. The complexity, and
volume issues take a new twist when the SCLM group is asked the questions about
their organisation’s expectations regarding global sourcing and selling globally.
14
Key Learnings
Figure 17 Do you believe that your supply chain strategy sufficiently

addresses the option of sourcing goods or services globally?
Retail: SCLMs
54%
53%
52%
50%
48%
47%
46%
44%
42%
Yes No
Figure 18 Do you believe that your supply chain strategy sufficiently

addresses the option of sourcing goods or services globally?
FMCG: SCLMs
70%
64%
60%
50%
40%
36%
30%
20%
10%
0%
Yes No
15
Key Learnings
Figure 19 Do you believe that your supply chain sufficiently addresses

the option of selling your goods or services globally?
Retail: SCLMs
100%
90%
86%
80%
70%
60%
50%
40%
30%
20%
14%
10%
0%
Yes No
86%
86%
of retail supply chain and logistics
directors believe that their supply chain
is inadequate for selling globally
16
Key Learnings
Figure 20 Do you believe that your supply chain sufficiently addresses

the option of selling your goods or services globally?
FMCG: SCLMs
80%
70% 72%
60%
50%
40%
30%
28%
20%
10%
0%
Yes No
Both groups feel they are not exploiting quickly enough the sales opportunities
globalisation is throwing up in particular. The impetus for this, as was evident from
the retail CEOs responses, is to acquire new customers, but also to compete in new
global markets through collaborative alliances with other global retail partners.
As with the general sample group this year, there is an increase in the use of supply
chain consultants in the retail industry in particular, where 16% of respondents make
use of consultants. This is consistent with the wish to redefine supply chain strategy
under the pressures of globalisation, complexity and increased demand. The figure
falls to 9% for the FMCG group, again consistent with their focus on servicing retail
customers from a functional perspective.
When asked about the sharing of demand forecasts with their logistics service
providers, 64% of the retail group profess to do so most or all of the time, versus
56% of the FMCG group. The marginally greater estimate of ‘sharing’ for the
retail group may reflect the fact that orders given to the FMCG group could be
seen as demand forecasts, given that the levels of real collaboration are seen as a
challenge consistently.
The logistics service providers are also not seen by either group as strategically
important, with only 16% of FMCG and 11% of retail respondents seeing them as
key participants to strategy formulation. The realities of collaboration, and how far
the industry has to go if it is to be realised as a strategic objective, are revealed in
the responses of both groups to the question ‘do you share demand forecasts with
your suppliers’ to the retail group, and ‘does your customer share demand forecasts
with you’ to the FMCG group.
17
Key Learnings
Figure 21 Do you share detailed demand forecasts with your supplier(s)?
Retail: SCLMs
45%
40% 41%
35%
34%
30%
25%
20%
17%
15%
10%
7%
5%
0%
All of the time Most of the Not often Never

time
Figure 22 Do your customers share detailed demand forecasts with you?
FMCG: SCLMs
60%
56%
50%
40%
30%
24%
20%
16%
10%
4%
0%
All of the time Most of the Not often Never

time
18
Key Learnings
For the retailers 58% believe they share forecasts often or always with FMCG suppliers.
Only 28% of suppliers believe the same. If, as already suggested, orders to suppliers
could be considered to be demand forecasts by the retail group, this could explain
this crucial disparity. But the FMCG supplier group is aware that these don’t constitute
detailed forecasts, and thus continue to place planning and forecasting on top of
their strategic challenges. Generally, of course, this indicates a lack of proper and
effective collaboration, and is resulting in higher out of stocks and lower availability,
and thus higher costs, than should be the case.
A question regarding the inbound costs of the retail supply chain further corroborates
the gulf that exists between perception and reality regarding collaboration. Fully 70%
of the retail group regard inbound supply chain costs as part of the cost of sales (with
8% of this number, amazingly, not measuring these costs at all), 29% of the FMCG
supplier group, on the other hand, think this is so. Another 25% of the supplier
group ‘don’t know’ how their retail customers consider their outbound (ie, the
customer’s inbound) logistics costs. Hence, costs are not being measured and managed
in any collaborative way, indicating the distance the industry has to travel to enable
real collaboration. Only with collaborative, flexible and agile enough supply chains
can the industry meet the twin challenges of increased volumes and globalisation.
Figure 23 How do you manage your inbound logistics costs?
Retail: SCLMs
We do not measure or manage these costs 8%

We have integrated our processes with our
suppliers to reduce these costs 19%
We negotiate with our suppliers to reduce these costs 8%
We regard them as part of our cost of sales 62%
Other 4%
0% 10% 20% 30% 40% 50% 60% 70%
62%
62%
of retail supply chain and logistics
directors regard inbound logistics costs
as part of their cost of sales
19
Conclusion
Feeding the Beast at Home and Abroad
The pressures on the FMCG/retail supply chain are much the same as in other
industries in SA right now. Sustained local economic growth and demand has placed
pressure on infrastructures, business processes and supply chain strategy, particularly
when coupled with a paucity of high-level supply chain skills. The industry is poised
for a further period of exceptional growth after a long period of prosperity and
profits, and will seek to do this partly through global expansion, and also by embarking
more steadily on the route to effective global sourcing. The retail industry in particular,
it seems, is now realising that the venture into the wider world and meeting increased
demands at home depends on a new, collaborative supply chain strategy which
involves their key suppliers on the FMCG side. The fact that the power in the
buyer/supplier relationship has traditionally sat with the retailers makes it possible
that this vision of reform will shortly become a reality.
The retail industry is realising that a collaborative

supply chain strategy with key suppliers is vital to
meeting the challenges of increased demand
and globalisation
20
Key Learnings
NOTES
NOTES
The 2007 supplychainforesight
study is proudly brought to you
by Barloworld Logistics, the
initiators of this survey. With the
growing presence of South
African companies in the global
marketplace, information of this
nature is critical to strengthen
our competitive position as a
nation.
Thank you to TerraNova, the

CSIR and the various logistics
council heads for their support,
as well as the many respondents
who participated in this survey.
Corporate Head Office Johannesburg

Survey conceptualised and initiated by 180 Katherine Street, Barloworld Park, Sandton
Tel: +27 11 445 1600
Fax: +27 11 445 1630/1632
Email: info@barloworld-logistics.com
Website: www.barloworld-logistics.com

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FMCG & Retail Report

Sourcing from and selling

Survey conceptualised and initiated by Research Results

As with last year’s research, we have endeavoured to elicit a comparison between

Figure 1 Primary industry in which your company competes?

Food, Beverages & Consumer Goods 19%

Oil, Fuel & Chemicals 16%

Building, Construction & Engineering 8%

Steel & Other Materials 4%

Mining & Quarrying 4%

Information Technology & Communications 4%

Paper & Packaging 3%

Government Services & Parastatals 3%

Pharmaceuticals & Healthcare 2%

Logistics & Supply Chain Services 2%

Insurance & Financial Services 1%

0% 5% 10% 15% 20% 25%

Globalisation and Industry Leadership

Figure 2 What impact will globalisation have on your

Somewhat negative 11%

Somewhat positive 67%

Very positive 22%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Retail: CEOs, MDs and GMs

New markets New Innovation Segmentation Extended supply Complexity of

Strong impact Fair impact Low / No Impact Don’t know

Figure 4 In which region(s) do you currently or plan to do business?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Downstream (Sell to) Upstream (Buy from)

Retail: CEOs, MDs & GMs

Access to skilled talent pool 0%

Service existing customers 24%

Access to new customers

0% 5% 10% 15% 20% 25% 30% 35%

Figure 6 Which of the following actions is your organisation currently

Forming strategic alliances with 22%

Off-shoring manufacturing activities 11%

Sourcing of raw materials or 0%

0% 10% 20% 30% 40% 50% 60%

Figure 7 How challenging do you consider the following to be in terms of

Not a challenge Somewhat challenging Very challenging

Figure 8 How challenging do you consider the following to be in terms of

Not a challenge Somewhat challenging Very challenging

Figure 9 Supply chain objectives for the next year

Retail: CEOs, MDs & GMs

Integrate our logistics functions 1%

Train and up-skill staff 4%

Redefine our supply chain strategy 8%

Improve flexibility and agility of the supply chain 1%

Improve information visibility 3%

Improve co-operation / collaboration in the supply chain 14%

Ensure on-time outbound deliveries 7%

Ensure on-time inbound deliveries 3%

Decrease lead times 6%

Improve asset utilisation 6%

Improve service offered to customers 8%

Reduce out-of-stocks / increase shelf availability 5%

Reduce investment in inventory 10%

Lower outbound transportation costs 3%

Lower warehousing and distribution costs 6%

Lower inbound transportation costs 1%

Lower sourcing / procurements costs 4%