Charting a new course: The retail merchandising-supply network

A new model for merchandising and supply chain management is emerging; it is about to transform the way in which retailers do business and deliver the customer experience. Many retailers see the supply chain simply as a means of moving goods from one place to another. In fact, a fully integrated merchandising-supply network can help companies achieve greater, sustainable growth by becoming more innovative and differentiating themselves in the marketplace.

New market forces and internal constraints explain why most retailers still struggle to manage their merchandising and supply chain functions very effectively. But, if they are to satisfy their target customers, they must make fundamental changes. They must build networks in which the various merchandising and supply chain functions are fully integrated and supported by systematic business intelligence, including a much more detailed understanding of the customers they serve. They must also tailor their operations to suit different products, customer segments, markets and timeframes. It is the complete integration and optimization of the merchandising-supply network that makes it one of the key levers in delivering a customer-centric shopping experience.

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