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Nearly 40% of Asian food retailers unaware of logistics costs: DHL
Source: IRIS | 07 Oct, 2015, 04.44PM
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Research in India, Indonesia, Thailand and Vietnam finds more than 1 in 4 food retailers expect to grow by 10 percent or more in 2015.

DHL Supply Chain, the global market leader for contract logistics solutions says, More than 1 in 3 retailers do not track performance of their supply chains despite growing complexity of supply and demand factors.


However, the report also found that while 86 percent of Indian food retailers understand their supply chain costs, 6 in 10 are struggling to maintain adequate levels of shipment accuracy in fulfilling growing demand- potentially impacting their ability to keep shelves stocked and orders filled as demand and competitive factors grow increasingly complex.

''Rapid increases in purchasing power, coupled with surges in demand driven by population growth, will yield obvious expansionary benefits to food retailers,'' said Dean Eichorn, vice president - retail, DHL Supply Chain Asia Pacific. ''However, any food retailer’s success is ultimately dependent on the agility of their supply chains when faced with demand volatility, seasonal fluctuations, and other complex market factors.''

The research found that food retailers are increasingly at risk from unpredictability on both demand and supply sides of their operations. In the four countries surveyed, late supplier deliveries were most commonly cited as food retailers' top concern, while 36% admitted that demand volatility had a major impact on their businesses.


The research also found that only 12% of Indian food retailers have sought to improve performance by fully outsourcing their supply chains, suggesting that retailers who actively adopt third-party logistics solutions stand to gain significant ''first-mover advantages'' against their competition.

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