eCommerce could allow manufacturers greater distribution potential – in this case, for fresh pasta.
Consultancy firm Columbus has urged food manufacturers to embrace digital commerce as a way of increasing their supply chain independence.
Producers can gain greater control over their supply chains and no longer be so reliant on supermarkets for profit if they embrace the eCommerce world and optimise their back office and front-of-house business solutions. The enterprise resource planning solutions provider said that supermarkets still had a major role to play in British retail, but that companies should look to supplement their profit through other channels.
The call comes at a time when food manufacturing firms are moving away from the big four supermarkets in the UK and increasing considering other routes to market for their products, Columbus continued.
Columbus managing director Mary Hunter said: “If you look at some of the more successful food manufacturing businesses, many of these supply goods to major retail stores and wholesalers as well as direct to consumers through eCommerce, webstores and distributors. During an age where consumerism is changing at a rapid pace and customers are demanding instant access to products, food manufacturers are missing a market channel and extra revenue if they are not embracing digital opportunities.
“If food manufacturing businesses can get their IT infrastructure right, and optimise their back end systems with intelligent, integrated front-of-house and webstore solutions, there’s no reason why they can’t exercise greater control over their supply chains and supplement the profit they make from supermarkets by distributing their products through other channels.
“Omnichannel strategies that do encompass digital have no limitations on shelf space, reduced barriers to listing and delisting products, and very low capital expenditure requirements. Those businesses that fail to embrace digital channels in their Omnichannel strategy risk being pushed to the back of the e-shelf. It’s not about whether you should work with major retailers or not, but more about bringing multiple channels together for real supply chain independence.”
© FoodBev Media Ltd 2020
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