Logistics Consulting Asia (LCA) - predictions for CPG Supply Chain in 2011

Dec. 17, 2010 - PRLog -- Asia:

Will happen:
1.   MNC retailers and manufacturers will continue to increase their focus on emerging markets.  With developed markets stagnant and the emerging markets in Asia, this will be a continuing trend.
2.   Retailers will be more proactive about supply chain infrastructure and managing inventory.  Some retailers’ focus has been solely on growth.  We’re hearing that people are seeking to ensure that they have the right infrastructure to sustain their growth and consolidate their market share as competition becomes fiercer.
3.   Manufacturers will be looking for better quality (accurate/timely/useful) information to manage their sales and distribution networks.  Some manufacturers have been kidding themselves that they have effective visibility and control - because they have invested in some technology.  Very few do.  Many of the systems that support this development will come as Software as a Service (SaaS)
4.   The revolution in mobile technology will put PDAs / tablet PCs into the hands of more and more distributors’ salesmen. Better, cheaper, equipment and its integration potential will mean that this technology will start moving from “nice to have” to “must have”.  Inbuilt GPS connectivity will open some very interesting opportunities.  
5.   Geographic Information Systems (GIS) will make an appearance as a sales support tool for manufacturers.  Just arriving as an applicable technology – but GIS will rapidly become a critical tool in driving sales and distribution channel effectiveness.  
6.   Distribution network rationalization will gain momentum.  As manufacturers realize that their distributed inventory models are outdated, inventories will be increasingly centralized (and reduced), transport upgraded and distributor relationships restructured to focus more on sales effectiveness.

Won’t happen:
1.   Collaboration (retailer - manufacturer or manufacturer - manufacturer).  Nice concept, increasingly talked about, but we just don’t see people overcoming their nervousness about ‘sharing’.  Maybe next year.
2.   RFID.  Some nice applications becoming available, but still years away in terms of mass market application in this part of the world.

Might happen:
1.   Sustainability as a main agenda item.  We’d like to think sustainability will become central to supply chain development plans – but it took a hit during the 2009 slowdown and we see no solid evidence that it is back on the agenda.

# # #

Logistics Consulting Asia (LCA) is Asia’s leading supply chain consultancy. Founded in 1999, LCA’s key services are supply chain consulting, interim management and LUCIA software as a service (SaaS). Visit http://logisticsconsulting.asia/