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2 5 2011 Retail Cpg Industry Report2011

May 20, 2015

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Shippers Warehouse, Inc. is a provider of supply chain services (3rd party logistics or 3PL). The Company operates over 4.5 million square feet in 8 facilities in the Dallas/Ft. Worth area and 500,000 square feet in Atlanta, Georgia.
The Georgia facility packaging operations ships out over 3 billion bags per year. Shippers Warehouse is one of the largest co-packers in the Southeast. Shippers operate 9 packaging lines with a ready room that is a showcase for reducing any type of foreign matter. The facility handles a variety of food products, is a leader in recycling, & distribution of products.
Shippers Warehouse, Inc. also has the distinction of having all of its locations ISO 9001:2008 certified. (ISO 9001:2008 certified by Management Certification of North America, an ANAB-accredited certification body.)

Regards,

Bill Stankiewicz
Vice President & General Manager
Shippers Warehouse
Office: 678.364.3475
[email protected]
www.shipperswarehouse.com

  • 1. Retail and Consumer Products Supply Chain Report A brief analysis of eyefortransports recent survey 2010 Co-Sponsored by:For further details, please contact:Chris SaynorCEO, eyefortransportWorld phone: +44 (0)207 375 7529US Toll Free: 1 800 814 3459 Ext. 7529Canada Toll Free: 1 866 996 1235 Ext. [email protected]

2. Retail and Consumer Products Supply Chain Report 2010Table of ContentsI. Introduction ............................................................................................. 4II. Methodology and Approach ............................................................... 5III. Profile of Respondents ......................................................................... 6IV. Expected Performance for Retail Sector..................................... 8V. Logistics Strategies ........................................................................10VI. Garment on Hanger Logistics.....................................................13VII. Time Dedicated to Programs.....................................................15VIII. Supply Chain Executives...........................................................16IX. Supply Chain Concerns...............................................................18X. Supply Chain Objectives..............................................................28XI. Methods of Marketing to Retail or ConsumerProduct Manufacturers ......................................................................30XII. Conclusions .................................................................................. 31XIII. About Nygard 3PL............................................................................32XIV. About eyefortransport................................................................33www.eft.com2 3. Retail and Consumer Products Supply Chain Report 2010List of ChartsAnnual Revenue ($) .............................................................................. 6Geographic Region.............................................................................. 6Categories of Goods Sold/Produced ................................................. 7Expected Performance for Retail Sector........................................8-9Taking Control of Inbound Transportation for Suppliers .................. 10Outsourcing to 3PLs............................................................................ 10Plans to Increase 3PL Outsourcing.................................................... 11Changing Transportation Modes to Reduce Costs ........................12Forecasting Capabilities....................................................................12Need for Garment on Hanger (GOH) Logistics............................... 13GOH as a Percentage of Logistics Needs......................................13Use of Specialized GOH Facility........................................................ 14Use of 3PLs for GOH Logistics ............................................................. 14Time Dedicated to Programs............................................................15Position of Supply Chain Executive................................................... 16Position that Supply Chain Executives Report to............................ 17Use of Chief Supply Chain Officer or Chief Logistics Officer ..........17Supply Chain Concerns................................................................... 18-27Supply Chain Objectives................................................................ 28-29Methods of Marketing to Retail or ConsumerProduct Manufacturers ......................................................................30www.eft.com 3 4. Retail and Consumer Products Supply Chain Report 2010I. IntroductionThe retail and consumer product goods sector is arguably the mostimportant market segmant in the World. The sector was severelyaffected by the recession which began in 2008, and which may still beongoing.The unfavourable personal economic situation of consumers, coupledwith supplier failures and fluctuating demand trends have all putdifferent stresses on to both retailers and consumer productmanufacturers supply chains. This survey aimed to take a snapshot ofsome of the major decisions and issues that supply chain executivesface today. We also looked at how the role of the Chief Supply ChainOfficer is currently being recognized within a companysmanagement structure.www.eft.com4 5. Retail and Consumer Products Supply Chain Report 2010II. Methodology and ApproachThis survey was conducted in May/June 2010 with responses solicitedby targeted e-mail lists, select trade association memberships, variousrelated-industry databases and other targeted methods. The surveylooked at a range of issues affecting retailers and consumer productsmanufacturers. No individual responses were analyzed, but rather allresponses were consolidated. www.eft.com5 6. Retail and Consumer Products Supply Chain Report 2010III. Profile of RespondentsOver 650 professionals responded to the survey, a large percentage ofwhom (33%) represented companies whose annual revenue exceeds$1 billion.The majority of respondents were either based in Europe (31%), AsiaPacific (30%), or North America (29%). Only a small minority werebased in the Middle East & Africa (7%), and Central or South America(3%).www.eft.com6 7. Retail and Consumer Products Supply Chain Report 2010Of the respondents representing retailers or consumer productsmanufacturers, 20% of respondents sold or produced grocery goods,18% sold or produced fashion goods, while 74% sold or produced non-food goods (respondents could choose more than one category, sothe figures total more than 100%) www.eft.com7 8. Retail and Consumer Products Supply Chain Report 2010IV. Expected Performance for Retail SectorAll respondents were asked how they expect the retail sector toperform in the next year. The overall results were generally positive,with the majority of respondents (65%) expecting to see slow growth,and a notable percentage (21%) expecting fast growth. Only a smallminority (3%) expect the retail sector to decline over the next year.When looked at by region, the overwhelming majority of respondentsfrom North America and Europe expect slow growth for the retailsector over the next year, while a far greater percentage expect tosee fast growth in Central or South America, Asia Pacific, or the MiddleEast & Africa. www.eft.com8 9. Retail and Consumer Products Supply Chain Report 2010When looked at by the industries represented, there seemed a fairdegree of consensus. One notable point was the majority ofrespondents expecting a decline in the retail sector, or no growth,were respondents representing press/associations/academics. www.eft.com9 10. Retail and Consumer Products Supply Chain Report 2010V. Logistics StrategiesThe next few chapters of this report focus on questions that were aimedonly to respondents representing retailers or consumer productsmanufacturers.Walmart have recently announced that they are going to take controlof the inbound transportation of their suppliers. In light of this,respondents were asked to identify their stance on taking control ofinbound transportation for suppliers. The majority (58%) are currentlymanaging some of their suppliers inbound transportation, though morethan a quarter still have no plans to do so.The majority of respondents outsource the majority of their logisticsneeds to 3PLs. 41% outsource over 75% of their needs, while 20%outsource between 50% and 75%. Only 11% do not outsource theirlogistics needs to 3PLs. www.eft.com 10 11. Retail and Consumer Products Supply Chain Report 2010The majority of respondents expect to increase the amount theyoutsource to 3PLs over the next 2 years, with 21% expecting asignificant increase and 34% expecting a small increase. A notablenumber do not expect to increase their levels of outsourcing, while ahigher number of respondents already outsource 100% of theirrequirements compared to respondents expecting to reduce theirlevels of outsourcing.When viewed by industry, the number of retailers expecting anincrease or no change in their logistics outsourcing levels was verysimilar to the expectations of consumer products manufacturers. Ahigher number of retailers expected to reduce their outsourcing levels,while conversely, a higher number of consumer productsmanufacturers already outsource 100% of their requirements.www.eft.com 11 12. Retail and Consumer Products Supply Chain Report 2010Respondents were also asked if they have moved more transportationto slower/cheaper modes such as Rail or Ocean to reduce costs, as aresult of the recession. Opinion was divided on this strategy, with 46%having changed transportation mode and 54% having not.Forecasting is an area where most respondents still feel that they haveroom for improvement. Only 22% of retail and consumer product supplychain execs rated their forecasting capabilties as either good orexcellent. Indeed, 30% rated their forecasting as less than satisfactoryor very poor. Or, put it another way and one can report that 78% ofrespondents would not rate their forecasting capabilties as anythingbetter that satisfactory.www.eft.com 12 13. Retail and Consumer Products Supply Chain Report 2010VI. Garment on Hanger LogisticsWe asked those resondents who retail or manufacturer fashion goods anumber of specific questions about Garment on Hanger Logistics. Halfof these respondents identified a specific need for garment on hanger(GOH) logistics.GOH logistics is only a small percentage (less than 10%)of the totallogistics needs for the vast majority (80%)of respondents. Norespondents to the survey had more than 75% of their logistics needsrequiring garments on hangers.www.eft.com 13 14. Retail and Consumer Products Supply Chain Report 2010A sizeable 38% of respondents have their own specialized garment onhanger facility, while 71% do not currently use 3PLs for their garment onhanger requi

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