In the rapidly evolving retail landscape, the dynamics of supply chain management are undergoing significant changes.
Steve Mills, Commercial Manager at Bray Solutions, sheds light on the current trends and challenges facing the industry, particularly in the food, drink, and pet food sectors.
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Emerging trends in retail supply chains
Mills highlights a notable shift in consumer preferences, particularly within the pet food market. “We are seeing a growing trend for healthy or vegan pet foods, particularly with dog food,” says Mills.
This shift is driven by pet owners who are becoming increasingly conscious of what they feed their animals, emphasising not just nourishment but also the traceability of the products they purchase.
“This desire for a more natural product has especially grown over the last 18 months,” Mills notes, adding that Bray Solutions has onboarded several customers operating in this niche market.
A similar trend is evident in the food and drink industry. According to Mills, there is a growing demand for healthier products, particularly beverages for children with lower sugar content and natural flavours.
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By GlobalDataHowever, these products must still be appealing in both flavour and presentation to capture the market. For the adult segment, craft beer and alcohol have seen a surge in popularity over the past year, with a particular focus on subscription-based and locally sourced products.
The Impact of e-commerce and direct-to-consumer models
The rise of e-commerce and direct-to-consumer (DTC) models has significantly impacted logistics and warehousing strategies.
“We have had to adapt our service offering to be more streamlined and information driven,” explains Mills.
The expectation for rapid delivery, spurred by giants like Amazon, has raised the bar across the industry. “In previous times, end customers were happy with a three-business-day delivery window.
Now, with the rise of Amazon and their same or next-day delivery, everyone else has had to adapt and offer similar levels of service as a minimum expectation.”
This shift has necessitated substantial investment in warehouse management systems (WMS) at Bray Solutions. These systems are crucial for managing the increased demand and ensuring efficiency in operations.
“We have also had to increase staffing to keep up with the demands of expedited service levels,” Mills adds, underscoring the operational changes required to meet modern consumer expectations.
Challenges in order fulfilment
One of the most significant challenges in ensuring efficient and timely order fulfilment, according to Mills, is the availability of stock from customers’ suppliers.
“Sometimes there are orders in place, and we haven’t received all of the stock yet, eating into our preparation and despatch SLA’s,” he explains.
Additionally, external factors such as traffic congestion, particularly on major routes like the M25 and M6, add another layer of unpredictability to the supply chain.
Leveraging technology for multi-channel orders
To meet the evolving demands of retailers, Bray Solutions has heavily invested in technology, particularly in their Warehouse Management System. “Our biggest investment in the last few years, other than in our people, is in our Warehouse Management System,” Mills says.
The WMS integrates seamlessly with multiple selling platforms, eliminating the need for manual intervention. “Orders are seamlessly received, and once picked and despatched, the system will update the seller platform with fulfilment details.”
This integration provides real-time data, allowing both Bray Solutions and their customers to focus on business challenges rather than administrative tasks. “That effort can be targeted towards improved service levels and offerings, which is a positive for everybody,” Mills points out.
The Evolving role of contract packers
Contract packing, once seen as an ancillary service, is now integral to supply chain efficiency, particularly in light of increasing consumer expectations.
“With the increasing expectations and requirement for quicker project delivery, it’s no longer an option for a company to have their storage and distribution at one site and their contract packing at another,” Mills observes.
Bray Solutions operates a large contract packing operation alongside their 3PL fulfilment services, which is crucial in maintaining efficiency and profitability.
“The big challenge for any contract packing department is the versatility required across a large cross-section of sectors, where efficiency is key, and time is critical,” Mills says.
By integrating contract packing with other services, Bray Solutions can offer significant cost reductions through efficiency and machinery, benefiting their clients.
Strategies to mitigate supply chain disruptions
Looking to the future, Mills emphasises the importance of diversification and strong relationships within the supply chain to mitigate potential disruptions.
“The key strategy is not putting all your eggs in one basket – systems, processes, suppliers, product offering, even people – all of them are reliable until they are not,” he advises.
Building a network of providers allows Bray Solutions to operate with flexibility and continue operations with minimal disruptions.
Having multiple service offerings also insulates the company from the risks associated with relying on a single income stream. This strategic diversification is crucial in maintaining resilience in an unpredictable market.
Adapting to a changing landscape
As retail supply chains continue to evolve, companies like Bray Solutions are adapting to meet new challenges and consumer expectations.
By investing in technology, diversifying services, and building strong supplier relationships, Bray Solutions is positioning itself to stay ahead in the competitive landscape.
The insights provided by Steve Mills underscore the importance of agility, innovation, and strategic planning in navigating the complexities of modern supply chain management.
