What Retailers are Saying About Supply Chain Issues
We had a great group of about 18 members for this Chat addressing one of the biggest problems faced by both retailers and distributors – keeping products stocked. Moderator, Jim Scott of RAWZ Natural Pet Food was joined by distributor representatives, Sevy Maurer and Jill Shoush of Animal Supply and Jessica Morris of Phillips Pet Food.
After introductions all around, IndiePet Executive Director, turned the meeting over to Jim.
Jim kicked off with the suggestion that a more “strategic perspective of supply chain” may be needed, including strong forecasting from both retailers and distributors. He noted that manufacturers are often incentivized for fulfilling orders to larger and online retailers and not penalized for shorting smaller, indie retailers. With the wide availability of so many pet products, Jim suggested that “whoever has the goods is going to win”. One of our retail participants noted that it was very frustrating to try to explain to a customer why their desired product was not on the shelf, when the customer, then and there, can use their smartphone to find the product online or at a big box store.
Jim also suggested that it was important for both distributors and retailers to commit to a strong product mix with a focus on indie-supporting brands, noting that aligning with brands that don’t have allegiance to the indie space could cause problems including requiring the retailer to stock unneeded skus simply to keep competing products off the shelves.
Sevy, who comes from a retail background, pointed out that retailers are all too often in “firefighting” mode and could benefit by partnering more closely with distributors for stronger forecasting, with both looking ahead and planning for seasonal product needs.
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Here are suggestions that came from the group:
Bring back the annual manufacturer’s calendar so both distributors and retailers can know what products are planned for release.
Retailers and distributors need to build closer partnerships to facilitate better forecasting for seasonal and fast selling products
Retailers should consider charging late fees/charge backs for product not delivered
Retailers/distributors may want to consider similar punitive action against manufacturers (as big box stores do) for late/short delivery of product
Staying on top of MAP/iMAP is important (IndiePet will soon offer a dashboard to members to help alleviate this challenge.)
The larger “voice” of IndiePet members will have more effect on manufacturers than individual retailers complaining about short shipments. One more reason for smaller retailers to become IndiePet members.
There may be a “supply chain summit” in IndiePet’s future where manufacturers, distributors and retailers can get together to hash out solutions to the supply chain issues that affect all independents.
