France's Le Groupement des Mousquetaires has set itself the goal of reducing costs in its private label supply chain in a move it says is a reaction to the country's supermarket price war.
Promotions on branded products in France, as well as a slump in sales of private label produce nationwide, have necessitated “the elimination of unproductive spending [in private label supply chains], as well as the development and innovation of premium [private label] products.”
A “plan of progression” has been put in place between the supermarket group and its private label packaging and raw-material suppliers, a company press release stated. This is hoped to shrink production costs.
Logistics management methods will be reviewed, as will supply chain training and loss-reducing action. Companies SAP, CGI and EY will help to improve the reliability and accuracy of logistical data, offering a “harmonisation of administrative functions.”
The operation has been dubbed A2P2020.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.
